Increased competition together with a saturated market that has ruled out growth prospects are among the reasons that made carriers to offer unlimited wireless data to lure in customers.
Verizon finally has given in to the unlimited data plan strategy that carriers have resorted to as a desperate means of holding on to their share of the market that is increasingly becoming saturated.
On offer is a new plan with unlimited data, texts and calling on a single line for a monthly $80. There is also a family plan with four lines each costing $45 so that the monthly billing comes to $180.
Verizon also stated their unlimited plan provide for HD video streaming by default, besides letting you use your smartphone as a mobile hotspot for up to 10 GB as well. Verizon’s monthly data allotment is restricted to 22 GB of data at LTE speeds, beyond which data gets prioritized to prevent other customers getting affected during peak times.
Verizon had earlier ruled out the possibility of introducing an unlimited data plan even as competition had been creeping on to its market share with similar offerings. It has just been a week that Sprint had come up with an unlimited data plan for five lines that costs $90. T-Mobile too is offering unlimited data plans on four lines for $160 a month, with the provision to add up to ten lines each costing $20.
Verizon claimed their unlimited plans are better than their competitors such as T-Mobile or Sprint given that they are offering video streaming feature in true HD. Competing plans also offer video streaming capability but in lesser resolutions, with the option to upgrade to HD but for a price.
Verizon though has made it mandatory for customers of its unlimited plans to agree to paper-free billings and AutoPay. The last time, Verizon has had unlimited plans in its boutique has been 2012. AT&T too offers unlimited data plans but its applicable to only subscribers of its DirecTV and U-verse services.
Experts claimed new technology has ensured the cost for transporting each gigabyte has seen a drop of around 40 – 50 percent, which ensured carriers are back with their unlimited plans. Another reason for the sudden trend to offer unlimited wireless is the almost saturated market which has negated growth prospects. Carriers are desperate to hold on to their user base and offering unlimited wireless seems to be the way forward.