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Verizon Wireless offers relief on data caps
Verizon Wireless will begin selling a device from Novatel Wireless that allows mobile users to connect multiple devices to a 3G connection. Called the MiFi 2200 Intelligent Mobile Hotspot, the device uses Verizon's EV-DO Rev. A network to create a personal WiFi cloud that can connect up to five WiFi-enabled devices.
The product appears to be a way for Verizon to keep devices on its 3G network rather than accessing public WiFi hotspots. Verizon Wireless acknowledges that WiFi is becoming a critical feature in many smartphones, so it had to address the issue, and did so with a product that no other operator in the U.S. is yet offering.
But what is most interesting is the operator's move to drop its overage fees for its $60 and $40 mobile broadband plans, from $.25 per megabit to $0.05/MB and $0.10/MB. And the $40 plan has seen its data usage limit increase from 50 MB to 250 MB.
Does Verizon Wireless' move solve the data-cap conundrum I've talked about in the past? I'd say with this change, the industry is getting there. I've discussed at length the fact that consumers have a difficult time understanding how many megabits it takes to view Web pages or run videos. It's not the same as watching the minutes go by while chatting on the phone. This discussion, of course, was spurred by lawsuit filed by Billie Parks on behalf of herself and others against AT&T Mobility and RadioShack after she purchased a $100 netbook at a RadioShack bundled with a two-year data contract from AT&T. Her first bill was more than $5,000.
Current Analysis analysts William Ho and Kathryn Weldon said in a research note that Verizon Wireless' data plan changes "will certainly influence AT&T to rethink and likely move on its own data overage fees and its $39.99 Data connect plan usage limit to match." The analysts added that Verizon Wireless' data plan adjustments "show the carrier is taking a more aggressive stance in laying the groundwork for more data use."
Right now, AT&T is the most punitive when it comes to overage charges, according to research from Current Analysis. For its $40 per month plan, it charges about $1/MB as an overage rate and $0.51/MB for its $60 plan. Meanwhile, Sprint has historically had the lowest overage rate, $0.05/MB for its $60 plan. Verizon Wireless' adjustments have implications for both operators. --Lynnette
Comments
Most of the world thinks "MB" is megabytes. I'd suggest you never us "MB"-- always use "MBits" or "MBytes" so there's no confusion. I'm assuming that in the article, "MB" always means "MBits"?
Maybe better: Mb = Megabits and MB = Megabytes. Clinically speaking.
Bits are usually used in relation to speed and bytes are used in relation to storage. I hope the chart is related to bytes being that are 1:8 in relation to bits. 5GB is equivilent to 40Gb of storage. If net neutrality is applicable to this conversation, this would be a mute point because caps and throttling is restricted. Also, tiering in a wireless environment will be interesting because of the inconsistancy of an air interface. So, again, if the new FCC defines net neutrality for the customers benefit, Verizon's "offer" is completely empty.
MB does mean megabytes and Mb does mean megabits, at least according to my engineering school. Both bytes and bits relate to storage and throughput. It's just that storage capacities are too large to conveniently measure in bits, and throughput is too slow to measure in bytes.
It would be like quoting distance across town in feet and width of your computer screen in yards; not convenient.
I don't follow the relationship to storage, since storage capacity isn't an issue here.
While we're talking about language: there are moot points but not mute points.
Anal retention over.
If anyone's getting nailed with these overage charges, I would seriously encourage you to at least try to utilize a couple online tools to cut down on your bill. There's a great new blog called fixmycellbill.blogspot.com that tracks new ways to cut wireless costs and exposes shady billing practices utilized by the cell phone companies. Also, check out the consumer advocacy website where I (admittedly) work, fixmycellbill.com , that slashes the average cell bill by 22 percent. Through the site, which is powered by a company called Validas, we have currently audited over 26,000 cell lines and have saved consumers over $5 million off their wireless bills. You can see Validas in the national news media, most recently on Good Morning America at abcnews.go.com/GMA/story?id=6887412&page=1.
Good luck to everyone reading on cutting your expenses in the recession.
Dylan
Price fixing, censorship. Bad customer service. This is collusion. They need to have their FCC licenses removed and CEO's placed in custody for theft.
I want a bite to eat. I'm hungry. Bit, Byte, Bite.How many bits or bytes is this message? How many bits or bites are in my head? How many bits, bites, bytes, or bats did you use on your mobile phone last month? Who cares? To Joe DaConsumer, it's about content...not bits, bites, bytes.
VZW still seems to have its heads in the sand about Wi-Fi. They're scared of it,and don't seem to understand the long tail.
It's so interesting to see how they quickly want to advertise "the biggest", "the fastest", "the most reliable", but at the same time, don't want the customer to use it "too much". The amount of data a customer uses per month has nothing at all to do with the actual cost incurred by the provider. ISPs bill each other using the 95th percentile measurement, whereby 5 minute averages are used. They throw out the top 5% and pay according to the remaining 95% of 5 minute averages throughout the month. They can do this because they are guaranteeing service levels, speeds, and uptime. As wireless carriers (and consumer broadband providers) would not dare guarantee any level of speed, uptime, or SLA, they cannot use the industry standard 95th percentile measurement. The only other option is to simply charge for cumulative consumption...which again, costs them nothing in the vast majority of cases. Using connections during peak windows, particularly for short periods of time will actually cost them more than spreading it out over the month.
They really need to re-adjust these billing models as mobile broadband is still too expensive and way too restrictive as has been proven time and time again. Consumers do not understand the billing models and with insanely low usage limits, most are simply too scared to even bother with it.
Verizon's reduction of the overage is not necessarily a step in the right direction. I'd call it more of a glance in the right direction. Until more flexible and less restrictive cost structures are put in place, I just don't see much consumer uptake at all.
Telecomunications providers are all rapacious crooks. They brag about their services, but they all have one thing in common. They lie like sacks about what they are selling you. They will lie to your face in their stores and sell you something completely different. They lie about their contract terms that you need a f***ing attorney to decipher--again right to your face. They are just a bunch of lying sacks of s**t. ALL OF THEM; EVERY LAST GODD**MN ONE OF THEIR LITTLE WEASEL LITTLE AS**S.
Verizon caps their $60 broadband wireless plan at 5GB (that's gigaBYTES) but since they measure in kiloBYTES, it comes out to somewhat over 5000 kb.
My contention, however, is that they give no useful or timely method to measure or limit usage. I checked today and my usage was last updated TWENTY DAYS AGO! This is absurd, and a shady and borderline-deceptive billing practice that traps consumers into costly overages. I sent them letters telling them so. How dare they impose overages without a way for the customer to control his usage, short of non-use. Funny how they always have the update to the minute at the end of the billing cycle, huh?
This reminds me of the early days of cell phone abuses.
I agree totally with you about Verizon being crooks. 6 days ago on Oct 22, I bought a Verizon Mifi 2200 with 5 GB cap. Found out later that the "monthly billing cycle" ended - you guessed it - on 10/22, my purchase date, so before I even got the darn thing home, they were slamming me with $59.99 fee for that month, the one that just happened to end the day I bought the unit.
I was mighty skeptical about the 5 GB cap, so I thought I'd watch our usage like a hawk - which by-the-way is impossible to do. You have VZ access manager - THEIR SOFTWARE and it shows usage and statistics - BUT... this part I love!!! - There is a disclaimer by Verizon that these figures are not accurate for billing purposes - well then, what the heck are they good for? Next, I can go to my wifi hotspot and check my usage there - but again - there lurks the Verizon disclaimer - not good for billing purposes. OK, so now I have 3 VERIZON programs telling me my usage [and none of them agree, by the way] - but none of the 3 are any good, according to Verizon. So, how the heck am I supposed to monitor my usage? Well, lastly you have the high and mighty "My Verizon" - their billing site and lo and behold that is the only one that's accurate. NOT!!! On Oct 26, I checked usage on "My Verizon" 3 different times and got 3 different usage numbers for 2 days prior. Who are they kidding? So I took my wifi back to the same Verizon salesman who sold it to me 6 days ago and they did refund me 100% of my purchase price, TG.
It's the upcoming bill I'm worried about. He says I'll get a paper bill and only for the few days I used it - then why does the online billing page show TWO $59.99 billing charges?? I can only imagine the grief I'll have trying to fight that when it comes. Not that I don't believe the salesman - but, well, he already lied to me. And I told him he must know about "not being able to get accurate, real-time usage info" and he said this was the first he'd ever heard of it - so I referred him to "My Verizon" chat room to catch up on all the complaints.
Anyhoo, here's the incredible thing. The darn thing worked like a wizard - they claim speed caps of 1.7 Meg/sec but what I consistently got on my wifi2200 was 56 MEG/sec even with 3 computers using it. Maybe being up here on top of the hill is good for something.:-)
Lucky for me, I was smart and bailed before the 30 day satisfaction guarantee was up. I can't imagine the unhappy folks who are stuck with 2 year contract. I say everyone should bail out then we'll see how things change.
Can anyone tell me - why can I a get current i.e. REAL TIME balance from my pay-as-you-go cell phone but Verizon can't seem to figure out how to apply this to wifi data only plans?? My guess is they just don't want to!! My neighbor got hit with $600 in overages her first month - and that's a small amount from what I've been reading.



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