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Analyzing Verizon’s Latest Makeover

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July 8, 2016

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Analysts, reporters, and bloggers have been seeing red all week. They’re not angry, per se, just fixated on Verizon’s wireless makeover. Early leaks indicated Verizon would be increasing the costs of its plans, while increasing the mobile data allotments. Many press outlets skewered the Verizon changes before they were even officially announced. Today the official details of Verizon new wireless rate plans and incentives were released, and while some of the bolt-on offerings aren’t the greatest, the rate plans themselves are by no means a ripoff, or bad for consumers. Verizon has considerably lowered its cost-per-gigabyte of mobile data with the new plans.

In fact, Verizon made a faux pas early in the morning when it announced some really sweet deals:

These plans, which were listed on the Verizon website and cataloged by Wireless Butler, exhibited considerable cost savings. The 100GB plan, as listed, offered mobile data at just $3.25 per GB! Someone must have made a significant mistake, because just a few hours later, Verizon’s brand new plans had brand new prices:

After the update (and perhaps termination of a marketing manager?) the S to XXL plans remained the same, but the larger data plans exhibited different prices. Instead of plummeting all the way down to $3.25/GB, the larger plans flat line at $4.50/GB. This is still a great deal, and in most cases cheaper than Verizon’s older plans, or AT&T. You can see how these changes play out in the graph below:

Overage fees on the new Verizon Plans remain the same as they were before: $15/GB.

All of Verizon’s plans offer a better ratio of  dollars to gigabytes.

Verizon also introduced two new plan features: Carryover Data and Safety Mode. Carryover data is a limited data rollover feature. Unused data at the end of a month is added to the allotment of the following month. This data is used first, and expires after one month.

Safety Mode is essentially a throttling feature that prevents incurring overage charges. Turn on Safety Mode, forget about bill shock–sounds cool, right? Well, it’s not quite that simple. Turning on Safety Mode essentially chokes your mobile data to dial up speeds (~128kbps), rendering your fancy smartphone pretty useless. Just ask anyone who’s experienced T-Mobile’s “Unlimited” mobile data. It gets worse. Only the larger plans (16GB and larger) come with Safety Mode. So if you’re on a smaller plan and want the privilege to be choked, you’ll have to pay $5 a month extra.

That’s not all. Safety Mode only works on the New Verizon Plans, it is solely controlled by the primary account holder, and it affects all lines on the account equally, so it’s either all 4G LTE or all dial-up–you can’t selectively throttle your daughter for downloading too many movies.

At the end of the day, though, Verizon is giving customer more data for a better price, and that’s something the Wireless Butler can get behind! If you want help switching your plan or want to jump to Verizon to take advantage of these great deals on mobile data, don’t hesitate to email Wireless Butler or reach out on Facebook or Twitter.

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