# New Data Plan Math

Discussion in 'Verizon' started by Old Member, Nov 1, 2010.

1. ### Old Member Android Expert Thread Starter Rank: None Points: 313 Posts: 2,586 Joined: Mar 23, 2010

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Verizon announced it's new Tiered Data Plans. Basically, 250MB for \$15. They dropped the \$10 for 25MB. Now while that looks like a good deal, lets look more closely:

The unlimited data plan has a 5B cap on it (allegedly). There are approximately 1024MB in 1GB. 5x1024=5120MB. Divide 5120MB by \$30/mo=.0058 or about 1/2 cent per MB. 250MB at that same cost is \$1.45. Why are they charging \$15/mo for something that if you buy the unlimited data plan only costs \$1.45? 100% mark up = Highway robbery.

If you divide 250/MB by \$15 for the new tiered data plan, you are paying \$.06/MB instead of \$.006/MB. Did someone misplace a decimal point when they were figuring the math on these things?

Here is the true price it SHOULD be (I'm rounding .0058 to .006 based off of the 5GB cap on Unlimited Data):

1GB= \$6.14
2GB= \$12.28
3GB= \$18.43
4GB= \$24.58
5GB= \$\$30.72 (Which shows you that the .006 is a high estimate b/c it's only \$30/5GB)

If it the data plan was based on the current price of \$15/250MB the cost WOULD BE:

1GB= \$61.44
2GB= \$122.88
3GB= \$184.32
4GB= \$245.46
5GB= \$307.20

Not that I want to give Big Red any ideas or anything.

Bottom line? Unlimited is a GREAT deal at around 1/2 cent per MB. If you pay \$15 for 250MB you are not wise.

#1
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2. ### Old Member Android Expert Thread Starter Rank: None Points: 313 Posts: 2,586 Joined: Mar 23, 2010

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Wow! I totally mis-read the math, it's ACTUALLY MUCH WORSE than my post above. It's not \$15/250MB, it's \$15/150MB. Here is the REVISED math:

The cost at this price would be \$.146 or rounded \$.15/MB. At that price it would be . . .

1GB= \$153.60
2GB= \$307.20
3GB= \$460.80
4GB= \$614.40
5GB= \$768.00

Thank the Lord that we got that straight.

#2
3. ### WormDoes Android Expert Rank: None Points: 313 Posts: 3,199 Joined: Aug 8, 2010

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They better grandfather some loyal customers to allow them to keep their unlimited plans or the shit is gona hit the fan big time

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4. ### Old Member Android Expert Thread Starter Rank: None Points: 313 Posts: 2,586 Joined: Mar 23, 2010

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They are still offering the \$30/mo Unlimited (for now). I think if they were smart and not quite as greedy, they could offer 1GB for \$15 or 2GB for \$20, still make a HUGE profit (above the standard 1/2 cent per MB). TONS of parents (myself included) would jump on those prices and add smartphones for their kids, not to mention those that are on limited budgets could then afford them too. A little cut would make HUGE gains.

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5. ### WormDoes Android Expert Rank: None Points: 313 Posts: 3,199 Joined: Aug 8, 2010

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I agree completely. 1G for \$15 seems much more reasonable and worth it for the consumer. It's all about numbers for monopolies like VZW. I'm sure they did their due dilligance and market studied groups and they figured this was the best way to please us customers and keep their pockets lined at the same time

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6. ### ACD168 Android Expert Rank: None Points: 143 Posts: 1,885 Joined: Apr 30, 2010

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Hell I could handle \$500MB for \$15 but 150MB for \$15 cmon!
we go from 5120MB for \$30 to 150MB for \$150
doesn't make sense. sense would be
2560MB for \$15
ha yea right

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7. ### imtoomuch Android Enthusiast Rank: None Points: 63 Posts: 310 Joined: Jul 10, 2010

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If they decide to lower the limit on the unlimited or get rid of it alltogether they better grandfather me in or I will switch carriers in a heartbeat just to prove a point. And I encourage everybody else to do the same. If enough people leave at once they will change their ways.

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8. ### chrisjz Well-Known Member Rank: None Points: 16 Posts: 75 Joined: Jul 23, 2010

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150mb is a joke! I'm over 800mb right now.

#8
9. ### gruss Android Expert Rank: None Points: 163 Posts: 1,411 Joined: Feb 16, 2010

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While I agree the price for 150 meg is ridiculous, what is the penalty for going over? See it would be nice for someone with low data usage to pick the lower plan and if they went over it just bumps them to the \$30 plan plain and simple, some months you save 15 bucks some months you don't. If they tiered it like that I would say yay VZW...i just doubt it is.

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10. ### Nightfall Well-Known Member Rank: None Points: 36 Posts: 109 Joined: May 12, 2010

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I really don't see how things changed after these new plans were announced. Unlimited is still around. The \$15 plan only really affects those that want a little data. I have never had a problem with my unlimited data plan, and I don't plan on changing my plan anytime soon.

#10
11. ### Old Member Android Expert Thread Starter Rank: None Points: 313 Posts: 2,586 Joined: Mar 23, 2010

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No, if you go over they bump you another \$15 for another 150MB according to the new tiered plans. So in essence you would be paying \$30 for 300MB rather than \$30 for Unlimited.

#11
12. ### dspcap Well-Known Member Rank: None Points: 38 Posts: 166 Joined: May 16, 2010

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I think offering options of 1GB, 2GB..etc. is too confusing for the average consumer and could cause more problems for VZW. Most people like simplicity.

#12
13. ### Old Member Android Expert Thread Starter Rank: None Points: 313 Posts: 2,586 Joined: Mar 23, 2010

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I'm not saying give ALL of those options, I'm saying give one or the other. For example, right now you can get 2GB of data for wireless tether for \$20/mo. Although most of us are rooted and don't pay that now, if they opened that plan up for Smartphones, it would be a VERY wise thing to do. In fact, make it \$19.99 for marketing purposes. Then they could say "In these trying economic times we at Verizon Wireless understand what you are going through, that's why we developed a 2GB data plan that fits YOUR budget. With Verizon Wireless now everyone can Rule the Air".

#13
14. ### Kennyc11 Well-Known Member Rank: None Points: 16 Posts: 86 Joined: Aug 23, 2010

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ZZzzZZzzz I hope all cell phone companies don't do this. I know my contract ends in May of 2011 and I'm looking into Sprint already because I'm worried that I won't be able to keep my unlimited plan. Plus NYC has 4G now so that's a plus.

#14
15. ### ttran97 Android Enthusiast Rank: None Points: 78 Posts: 572 Joined: Nov 29, 2009

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I lowered my mom's data plan to \$15/150 mb. She was only using like 30 mb a month to look at pics of her grand daughter and broadcasting her location on Latitude. I'm happy because instead of \$360 a year for data for her, now it's only \$180 a year.

My dad and I are still on the unlimited.

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16. ### necosino Android Expert Rank: None Points: 163 Posts: 1,962 Joined: Apr 14, 2010

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Thank God for unlimited I use 12-15GB/month; that's using my phone for work e-mails, and I get hundreds of .pdfs (between 1-5MB each) every day. I've never been contacted by VZW or anything regarding my usage, either.

#16
17. ### superchaos Android Enthusiast Rank: None Points: 43 Posts: 486 Joined: Dec 13, 2009

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It seems some of you are forgetting there are a lot of people who still use dumb phones. I just saw some lady texting away with her flip phone. Now she can access the internet on her 1x2 screen and not worry about an overcharge on her data use. She can't stream music or watch tv and she probably doesn't want to.

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18. ### Argent Android Enthusiast Rank: None Points: 53 Posts: 258 Joined: Mar 11, 2010

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Don't forget before all smartphones had to have the \$30/month data plan.....now you can get one with the \$15/month data plan - essentially drawing more people in to smartphones and away from dumbphones (or feature phones)

Plus - with as many smartphones having WiFi built in - you can end up with a cheaper monthly plan, but still get the benefits of having a full featured smartphone by using WiFi where you can find it (at home, starbucks etc)

#18
19. ### ctc Android Enthusiast Rank: None Points: 43 Posts: 281 Joined: Apr 8, 2010

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While I agree that 1 GB would be more reasonable, VZW is not a monopoly. You have 3 other major carriers to choose from and in some areas you have regional carriers as well.

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20. ### euph_22 Android Expert Rank: None Points: 213 Posts: 2,634 Joined: Feb 24, 2010

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Ok, that's just outrageous. Everything else seems quite reasonable (ok, the \$15 base amount should be closer to 500mb-1gb)

But it's insane that they think it's reasonable to charge some people \$45 for 450mb when other people get 5240mb for \$30.

#20
21. ### necosino Android Expert Rank: None Points: 163 Posts: 1,962 Joined: Apr 14, 2010

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Especially when WE will continue to get unlimited for \$30..

#21
22. ### pdykstra Well-Known Member Rank: None Points: 38 Posts: 128 Joined: May 1, 2010

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The wireless market is an oligopoly, and although they don't have as much power as a monopoly they certainly do have some power to fix prices.

#22
23. ### ctc Android Enthusiast Rank: None Points: 43 Posts: 281 Joined: Apr 8, 2010

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There are cheaper alternatives to VZW but they don't have the same coverage area. So I choose to pay more for more complete coverage.

#23
24. ### dragonsamus Android Enthusiast Rank: None Points: 38 Posts: 317 Joined: Feb 24, 2010

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retail... bleh
Sacramento, CA
wow! look at those prices!!! im glad im on the unlimited plan.

#24
25. ### tommy_ed Android Expert Rank: None Points: 143 Posts: 1,004 Joined: Feb 26, 2010

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To all the people worried about losing their unlimited data plan:

Verizon wouldn't able to do that if you are currently on the unlimited plan. It would be a breech of contract.

#25