Changes in pricing policies as Verizon Wireless launches the LTE networks
07.05.2010Changes in pricing policies as Verizon Wireless launches the LTE networks.
A usage-based pricing model will probably be employed by Verizon Wireless when the company commences operation of the LTE network in the markets this year. According to a Verizon executive, wireless carriers are going to increasingly accept this model in the future.
With so many devices on the LTE network, the pricing concept will likely be changed. It will be more lucrative for the company to introduce a pricing scheme in which customers are charged a base rate for using the network on LTE-connected devices and then on how much bandwidth the customers use.
The company is going to set forth about 30 LTE markets commercially, thus cover will reach about 100 million POPs. No details on the pricing have been revealed so far, but it has been made known that the network will posses capacities for data speeds at 5-12 Mbps for downloads and 2-5 Mbps for uploads.
AT&T Mobility has made it clear it would offer incentives for customers to use wireless broadband more efficiently. While it has not been clarified whether the usage-based pricing will be employed, it is the common sense that the wireless operators are going to use the scheme, given that growth of data traffic will continue.
According to Phil Asmundson, Deloitte's vice chairman and leader of its U.S. technology, media and telecommunications group, "If you look at what's happening today, they're being forced by necessity to adopt usage-based models," "All-you-can-eat business models depend on your ability to predict how much data your customers will consume. The iPhone has proven that you can't make those kind of predictions."
