Cell Phones: The providers are jacking up prices because they want more money

Discussion in 'Current Events' started by nitroz, Jun 14, 2012.

  1. nitroz
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    nitroz INDEPENDENTly ruthless

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    Verizon is trying to stamp out unlimited data customers | Marketplace.org


    To bring you up to date, there is a 4G network for cellphones. The 4G network was established for smartphones because they use more bandwith that what the 3G network can deal with, so the 4G network was created for the purpose to have enough bandwith for smart phones and be where they won't cause a strain.

    Now since people are using more and more data, there is no difference on how it's effecting the 4G infrastructure, so whats the problem? Why are providers switching to limited data plans?

    The answer is that they are implementing the new business model (based on how much data one will use) because it simply makes them more money. There is no need for it. They just want more money.

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    If you have an unlimited data plan for your phone through Verizon, you should know that Verizon is trying to put a stop to that. The company announced a plan aimed at families who have multiple phones and tablets connected to data networks. All the calls and text messages you want for up to 10 devices, but limited use of the data network.

    And as of June 28th, customers who want new phones will have to either go to a limited plan or pay the subsidy that Verizon normally pays, meaning a new iPhone could start at $649.

    Roger Cheng of CNET says for individual users on unlimited plans now, the new limited plans will cost you more.

    Roger Cheng: You'd actually be moving from an $80 plan roughly to a $100 plan at minimum.

    Moe: How about if I'm part of a family? I've got kids and teenagers.

    Cheng: Yeah, it gets a little bit more complicated. The more people you add to your plan, if you've got like a large family of five, and not all of them are heavy data users, then actually, you'll get decent data savings there.

    If you want to stick with unlimited you can keep your same phone forever or switch to Sprint, which still offers unlimited for now.

    I asked Karen Smith, a spokesperson for Verizon, why the company was doing this.

    Karen Smith: We think that people need to go to a usage-based model for data and pay for the amount of usage that they're using so that everybody is able to access the network.

    Moe: So is it a matter of being afraid that you're going to run out of room on the network if people are on unlimited plans?

    Smith: No, not at all. In fact, that's one of the reasons that we so aggressively keep expanding our 4G LTE network which is an overlay to our existing 3G network.

    I asked if the traffic isn't causing problems, is it that Verizon is trying to make more money to pay for building the new 4G LTE network?

    Smith: We made a decision to change our pricing model, and what we've done is we've allowed people to share data among a number of devices regardless of how many people are on the plan, it's a device model. And we're charging on the megabytes of data that they use.

    Moe: Why?

    Smith: People have changed the usage of how they're using their devices. They're moving to using more data, and to ensure the speed and reliability and the access to the network, people are paying for the amount of data that they use.


    Video Here ----> Verizon is trying to stamp out unlimited data customers | Marketplace.org
     
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  2. Mad Scientist
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    Mad Scientist Deplorable Gold Supporting Member Supporting Member

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    That's why I don't buy the newest phone or buy yearly plans.

    I have a Samsung Intercept that you can buy anywhere for $99 or less. $25 a month at Virgin Mobile gives me unlimited Text and Internet with 300 anytime minutes.

    I've NEVER run out of minutes either.
     
  3. whitehall
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    whitehall Gold Member

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    Consider the world you live in. Instant communication courtesy of the private sector in the greatest technoligically advanced Country in the world. My advice ...tell them how much you hate their product by smashing your cell phone.
     
  4. nitroz
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    nitroz INDEPENDENTly ruthless

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    lol, I don't have a phone.
    Havent had one for a year or more.


    They arent worth the price for the shitty reception when in buildings and some places.
     
  5. AminahM
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    AminahM Rookie

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    Sounds like a deal I have been looking for. Thanks.
     
  6. pinqy
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    pinqy Gold Member

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    And why is it bad to want more money? That's the whole point of a business: make as much money as you can. It's a thing I like to call Capitalism. If the consumers are willing to pay a higher price then the company should charge a higher price.

    And there is a need for the new plan: it generates more revenue.
     
  7. Zoom-boing
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    Zoom-boing Gold Member

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    Cell phone usage has come a long way in a short time. Most people using a smart phone aren't talking on it as much as they're using data, more and more and more data. What's wrong with paying for the amount of data you use?


    ^ This. I got VM about 7 or 8 years ago (for work purposes; work has disappeared at this point though) and am still on the 'minute to minute' plan. I simply don't use a cell phone all that much and refuse to switch to their cheapest plan, which now is $35/month for unlimited text and 300 talk minutes. When I first got it it cost a nickel to send or receive a text. Now, it's .15 for both. Waaaa, waaaaa they raised the price! No fair! Yeah, they're in business to make money if I don't like the price I can switch providers (but I won't find anything cheaper that fits my needs at this point).
     
  8. tjvh
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    tjvh Senior Member

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    The call for Taxpayer Subsidizing of all the "poor people" who cannot surf the Web from their IPhones in 3......2......1......
     
  9. Ringel05
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    Ringel05 Diamond Member

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    Yeah but your unlimited internet is unlimited in speed no longer. I have the same plan and after 2.5 GBs of use per month I'm slowed down from 3G to 1G. :mad:
     
  10. Intense
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    Intense Senior Member

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    If you go Wi-Fi around the house, does that help?
     

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