Investing Insights: Will Sirius Magic Rub Off On NBC?
Fran Shammo, Verizon’s chief financial officer, announced that the company plans to phase out unlimited data plans as customers upgrade from 3G to 4G technology. Shammo said the change is a prerequisite for implementing shared family data plans. AT&T (NYSE:T) and Verizon are both in a race to implement shared family data plans, which no other major U.S. carrier has yet done.
Verizon ended its unlimited data plans last summer, but grandfathered pre-existing unlimited plans into its $30 plans. Verizon will be introducing its data share service this summer. The new service will be the only pricing plan available to 4G customers, meaning that anyone wanting to upgrade will need to get rid of their current unlimited plan.
The impact on those who have already upgraded to 4G devices and were able to keep their unlimited plans remains unclear. The company has also not yet commented on whether or not those who keep their 3G devices will also have to kick their current plan to the curb. New Verizon clients, however, will not have to deal with any grey area — the company plans to stop selling 3G-only phones and offer only 4G smart phones in the very near future.