AT&T's and Verizon's Rate Plans

[Arysyn]

Hey everyone,

 

I figured I'd start a topic thread regarding the rate plans among the big two carriers, which this could be a valid place for discussion well into the future as they change/modify their rates, and how they compare among the always developing wireless market. Clearly, the big two carriers have a different perspective of how wireless plans ought to be. in contrast to Sprint and T-Mobile.

 

Currently as of August 27, 2016, the rate Verizon charges for two lines, each line at $20 monthly, equates to this :

 

16gb monthly shared data - $90 + $40 for two lines = $130 monthly

(equivalent of around $8.12 per 1gb)

 

24gb monthly shared data - $110 + $40 for two lines = $150 monthly

(equivalent of around $6.25 per 1gb)

 

30gb monthly shared data - $135 + $40 for two lines = $175 monthly

( equivalent of around $5.83 per 1gb)

 

 

These by no means are the only options currently available, but it gives a general idea, especially when used to compare with Sprint and T-Mobile. Considering Sprint's closest available plan to this, in terms of usage allowance - data speed, etc., the Sprint Unlimited Freedom Premium plan, is $140 monthly for two lines. From T-Mobile, the T-Mobile One plan, is $170 for two lines. Both are less expensive with Unlimited data, than getting 30gb is with AT&T and Verizon.

[Arysyn]

I'm adding an addition to this thread, regarding the latest in Verizon news :

http://www.rcrwireless.com/20161020/carriers/t-mobile-sprint-take-bite-verizon-q3-numbers-tag2

 

Verizon needs to do something soon, or else this situation will just keep getting worse for them, especially with their weak spectrum position, whereas AT&T is doing just fine. My thinking is that Verizon will add more data to their plans while restructuring their pricing a bit.

 

Edit Note : I wrote some ideas, but then decided they were a bit far-fetched. I'll rephrase my thoughts here later.

[Arysyn]

Alright, I think I have a good idea what Verizon might do next.

 

My guess is they could try to make a bigger deal around their "Safety Mode" data, utilizing the added line feature over a core package plan. Here is my idea of what it could/might look like :

 

There are three type of added lines to choose from -

A monthly $15 added line option with 64kbps Safety Mode 

A monthly $45 added line option with 1.5mbps Safety Mode

A monthly $75 added line option with 3.0mbps Safety Mode

 

All added to a base rate of $15 for Unlimited Talk & Text. So, for one line of service with unlimited talk & text, its either (monthly) $30 for 64kbps, $60 for 1.5mbps, and $90 for 3.0 mbps. Then to make  their optional high-speed data offering competitive with their "Safety Mode" data, the current deal of 1gb for $15, will be changed to 5gb for $15, an automatic overage if customers don't have "Safety Mode" activated/turned on.

 

Anyways, Verizon might do something similar to this as a competitive "response", if they feel the need, without actually going "unlimited". 

[dnicekid]

Verizon doesn't like to drop prices. I can see a little movement however they will push like hell to get something they can call 5g out to maintain their pricing point. Verizon thrives on claiming they have the best and being first.

I suspect att will be the first to drop prices or offer more data entering the Xmas season. If not the will have some great retention plans.

[RAvirani]

Verizon doesn't like to drop prices. I can see a little movement however they will push like hell to get something they can call 5g out to maintain their pricing point. Verizon thrives on claiming they have the best and being first.

I suspect att will be the first to drop prices or offer more data entering the Xmas season. If not the will have some great retention plans.

Agreed. In Seattle, four years ago almost every phone I looked at was on AT&T. Today an AT&T phone is much harder to come by. They are definitely feeling the pressure, at least here.

[Arysyn]

Verizon doesn't like to drop prices. I can see a little movement however they will push like hell to get something they can call 5g out to maintain their pricing point. Verizon thrives on claiming they have the best and being first.

I suspect att will be the first to drop prices or offer more data entering the Xmas season. If not the will have some great retention plans.

 

Agreed. In Seattle, four years ago almost every phone I looked at was on AT&T. Today an AT&T phone is much harder to come by. They are definitely feeling the pressure, at least here.

 

 

You're both right. AT&T and Verizon are feeling pressure and neither carrier likes to drop their prices, while trying to conceal their moves to compete as little change as possible. Being as it is, the matter is difficult for me to speculate on, though it is something I like doing and posting about here on S4GRU. I also like feedback on the analysis I make here, pointing both where I'm right and wrong, along with opinions both in agreement with me and otherwise.

 

Regarding my latest theory on Verizon, I believe they have to make a move soon, a major one this time considering the latest results. This looks like a serous situation for Verizon, and with the holidays soon approaching, this seems most likely the time for a rate plan refresh of some sort, but one that is more noticeable to the public and noteworthy. Yet, still keeping true to their word against introducing an unlimited data plan.

 

If Verizon were to have a high-speed unlimited data plan at this point, it may not have the positive effect so many analysts and speculators seem to think it'll have. Verizon bringing back a high-speed unlimited data plan may very well have negative repercussions in light of their recent and past statements against the notion of reintroducing this. Doing so would be contradictory to their statements, along with making Verizon look hypocritical and not trustworthy.

[Arysyn]

I want to point out that in my response to dnicekid and RAvirani, I mentioned my acknowledgment of AT&T and Verizon not liking having to reduce rates, along with my outlook of their doing things in a concealing way. It is this that makes me think of different ways Verizon might respond to the latest reports of major customer losses and in preparing for the upcoming holiday season. My thinking is, like how T-Mobile made a major reshaping of Binge-On in the introduction of the T-Mobile One plans. Rather than just raising the rates of the Simple Choice plans, T-Mobile raised rates through their new T-Mobile One plans. I believe Verizon will do through reinventing their Verizon Plan using their version of an unlimited/Binge-On prototype, Safety Mode, especially since Verizon already recently has had a standard type rate hike. Of course, while some rates get raised, other rates get reduced, all in order to better compete.

 

My thinking is that Safety Mode might become a semi-UDP designed to better handle/fit their customers' needs, considering the majority of Verizon's customers are light data amount users. Many of these customers who fear large data overages would do well with having a plan that does not have data overages, but rather slower, capped speed unlimited data, only paying for high-speed data when needed, along with having unlimited talk & text as an add-on only required on smartphones. This would give Verizon a plan to compete against Sprint's tablet add-on deals. Here is how it would work out in better detail than my first explanation of it :

 

The one-line tablet service that doesn't require talk & text, would start at $15 monthly for 64 kbps Safety Mode data speed. That is $5 less than Sprint's deal, but is considerably slower than what Sprint is offering. Matching Sprint, would be a $45 monthly offer for 1.5 mbps Safety Mode data speed. That is $5 more expensive though than Sprint's premium upgrade offering faster than 1.5 mbps on everything except for music streaming. Keeping in mind too that besides streaming, Sprint offers unlimited high-speed data on their plans. These Verizon plan ideas I'm proposing, do not, in order for Verizon to at least somewhat comfortably continue claiming they do not offer "unlimited data" to customers. The closest to that is the $75 monthly offer for 3.0 mbps Safety Mode data speed. Again, the monthly $15 - 64 kbps Safety Mode/$45 - 1.5 mbps Safety Mode/$75 - 3.0 mbps Safety Mode are for one-line tablet service not including unlimited talk & text.

 

For one-line smartphone service with required unlimited talk & text added on, is an additional monthly $15 to the tablet rates I wrote here. So, that is the cost of $30 for 64 kbps Safety Mode offer, which is a good starter plan to compete with pre-paid services. Then there is the plan for $60 for 1.5 mbps Safety Mode offer, which is the same price as Sprint's starter offer, though considering Sprint offers unlimited high-speed data not used for streaming, whereas there is no high-speed data included in this plan I propose Verizon to have. Then there is the $90 for 3.0 mbps Safety Mode offer. This is $10 more expensive than Sprint's premium upgrade offering faster than 1.5 mbps and even 3.0 mbps on everything except for music streaming. Currently on the Verizon Plan, $90 is the rate for one-line and 10gb of high-speed data and 128 kbps Safety Mode. So for the most part, my ideas are actually rate hikes to the basic plans, yet provide cost savings to customers as the end result of not having automatic overages. Still,, Verizon benefits from having a reduction in network traffic resulting in bandwidth savings, due to eliminating inclusive high-speed data, getting customers onto Safety Mode data use, where Verizon's only loss is in heavy data users, most of whom likely eventually will reduce usage after getting tired of being capped at the maximum of 3.0 mbps.

 

The reduction in network traffic resulting in bandwidth savings, will give Verizon a way of taking better advantage/control over their offerings of high-speed data usage to counteract most of any potential negativity of those heavy data users abusing the Safety Mode. Verizon could have deprioritization/throttling in those cases, while offering data abusing customers the option of still having data usage at even faster speeds than they get using Safety Mode, by purchasing high-speed data allotments. In order for Verizon to make this idea work, they'll need to reduce the price and/or increase the data amount being offered. I suggest having the rate remain at $15, but for 5gb of high-speed data, instead of 1gb. With the purchase of one 5gb allotment at $15, The one-line service rates are as followed :

5gb high-speed/64 kbps Safety Mode - tablet/$30 and smartphone with unlimited talk & text/$45

5gb high-speed/1.5 mbps Safety Mode - tablet/$60 and smartphone with unlimited talk & text/$75

5gb high-speed/3.0 mbps Safety Mode - tablet/$90 and smartphone with unlimited talk & text/$105

 

These rates essentially would get Verizon's majority light data usage customers to rely on Safety Mode while tempting those heavier data usage customers to purchase high-speed data. Getting the majority of light data usage customers off of using high-speed data onto capped slower speed Safety Mode data will make a significantly positive impact on improving the network, especially for those who see value in the high-speed data preferring to purchase and use the high-speed data instead of the Safety Mode data, which more than likely well will make up for any financial losses in this new plan arrangement. The most inexpensive of the smartphone service, the one-line/64 kbps Safety Mode/unlimited talk & text at $30 monthly, is the beginning rate to add a line of service onto a plan that shares any purchased high-speed data, though each line can still choose different Safety Mode data speed options. If two smartphone lines both chose to get 5gb high-speed/64 kbps Safety Mode - smartphone with unlimited talk & text/$45, that would provide 10gb of shared high-speed data for $90 monthly. Currently, the $90 rate is the same as offered with 4gb of shared high-speed data among two lines. The current plan has a slight bit faster Safety Mode data at 128 kbps, but offers 6gb less shared high-speed data.

 

Although, take the example of two smartphones lines with 10gb of shared high-speed data, but both with 1.5 mbps Safety Mode instead of 64 kbps Safety Mode, the rate goes up from $90 monthly, to $150 monthly. Currently, the $150 rate is the same as offered with 28gb of shared high-speed data among two lines. The plan I'm proposing has faster Safety Mode data at this service level, but offers 18gb less shared high-speed data. That is a significant difference making my proposal generally more expensive/less value, except for the customers that seem to matter most to Verizon ; those who are light data users and don't use much bandwidth on their network. My proposals here are very fitting for Verizon for this reason. Take the $150 two smartphone line plan I mentioned, subtract one of the $15 5gb smartphone allotments. That makes $135 for 5gb of shared high-speed data among two smartphone lines, still at 1.5mbps. That costs $5 more than the current Verizon Plan with two smartphones lines and 20gb of shared high-speed data. That is 15gb of shared high-speed data difference between the two plans at the same price.

 

Again, this plan generally is more expensive/ less of a value for high-speed data users on Verizon, than the current Verizon Plan is. The value comes in at equal to slightly greater cost than the current Verizon Plan for the majority of Verizon's customers, who are light-data users The point, despite the lengthiness of this post, is to show the various calculations and the differences between existing plans and my proposals, leading to why I think my ideas mentioned here would work great for Verizon. Granted, this isn't my ideal plan nor the plan structure I would use if I ran my own wireless carrier. However, the purpose is for Verizon to evolve naturally with what is has done to create its own path structure - this being its rate plans. Verizon has a great thing going with its Safety Mode that can be a protective buffer against criticism regarding its rate plans. That, among future-proofing them to compete in the long-term, especially with regard to their base of customers, making the most fitting plan for their needs in the best possible way to preserve their network.