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Verizon to ditch phone plans, go with shared plans
Verizon to ditch most phone plans, introduce plans 'shared' among family members, devices
NEW YORK (AP) -- Verizon Wireless, the nation's largest cellphone company, is dropping nearly all of its phone plans in favor of pricing schemes that allow consumers to share data usage among up to ten phones and other devices.
The new plans will let individuals add non-phone devices like tablets and laptops to their plans, as well as the phones of family members.
The change takes effect June 28.
It's the biggest revamp in wireless pricing in years, and one that's likely to be copied by other carriers. AT&T Inc. has already said that it's looking at introducing shared-data plans soon.
Verizon's new "Share Everything" plans include unlimited phone calls and texting, and will start at $90 per month for one smartphone and 1 gigabyte of data. If used only with a smartphone, "Share Everything" prices are lower than for current plans with unlimited calling and texting, but higher than plans with limited calling and texting.
Bigger savings will come for those who add more devices like tablets to their plans. In such cases, the new pricing system will be cheaper compared to getting separate data plans for each device. That gives Verizon a chance to capitalize on the growing popularity of tablets. Few consumers put tablets on data plans, probably because they dread paying an extra $30 or so per month, on top of their phone bills.
Under "Share Everything," adding a tablet to a plan will cost $10 per month. Adding a USB data stick for a laptop will cost $20.
Verizon's limited-calling and texting plans will disappear, except for one $40-per-month plan intended for "dumb" phones. Verizon is keeping its limited-data plans for single non-phone devices, like the $30 tablet plan.
Current Verizon customers will be able to switch to the new plans or keep their old ones, with one exception. Those who have unlimited-data plans for their smartphones won't be able to move those to new phones, unless they pay the full, unsubsidized price for those phones. (For example, an iPhone 4S that costs $200 with a two-year contract costs $650 unsubsidized, with no contract.)
Verizon stopped signing people up for unlimited-data plans last summer. The industry as a whole is moving away from the plans, since the data capacity of their networks is limited.
Under the new plans, subscribers can stop worrying about monitoring the number of calling minutes or text messages their families use in a month, but they'll have to keep a close eye on data consumption. Verizon will allow subscribers to adjust their data allowance from month to month, but if they go over their monthly allotment, that will cost $15 per gigabyte.
The data allowances start at $50 per month for 1 gigabyte. That's enough for prudent two-smartphone users who use Wi-Fi a lot, but Verizon recommends getting 2 gigabytes for $60. After that, each additional 2 gigabytes cost an extra $10 per month.
Under "Share Everything," Verizon will stop charging extra for letting devices act as "mobile Wi-Fi hotspots." That means subscribers who have a recent smartphone could use it to connect a tablet to the Internet, without paying the extra $10 per month for a tablet.
Verizon had telegraphed the move toward shared plans, but had not revealed the details or pricing.
Verizon Wireless is a joint venture of New York-based phone company Verizon Communications Inc. and Vodafone Group PLC, a British cellphone company with wide international interests.
NEW YORK (AP) -- Verizon Wireless, the nation's largest cellphone company, is dropping nearly all of its phone plans in favor of pricing schemes that allow consumers to share data usage among up to ten phones and other devices.
The new plans will let individuals add non-phone devices like tablets and laptops to their plans, as well as the phones of family members.
The change takes effect June 28.
It's the biggest revamp in wireless pricing in years, and one that's likely to be copied by other carriers. AT&T Inc. has already said that it's looking at introducing shared-data plans soon.
Verizon's new "Share Everything" plans include unlimited phone calls and texting, and will start at $90 per month for one smartphone and 1 gigabyte of data. If used only with a smartphone, "Share Everything" prices are lower than for current plans with unlimited calling and texting, but higher than plans with limited calling and texting.
Bigger savings will come for those who add more devices like tablets to their plans. In such cases, the new pricing system will be cheaper compared to getting separate data plans for each device. That gives Verizon a chance to capitalize on the growing popularity of tablets. Few consumers put tablets on data plans, probably because they dread paying an extra $30 or so per month, on top of their phone bills.
Under "Share Everything," adding a tablet to a plan will cost $10 per month. Adding a USB data stick for a laptop will cost $20.
Verizon's limited-calling and texting plans will disappear, except for one $40-per-month plan intended for "dumb" phones. Verizon is keeping its limited-data plans for single non-phone devices, like the $30 tablet plan.
Current Verizon customers will be able to switch to the new plans or keep their old ones, with one exception. Those who have unlimited-data plans for their smartphones won't be able to move those to new phones, unless they pay the full, unsubsidized price for those phones. (For example, an iPhone 4S that costs $200 with a two-year contract costs $650 unsubsidized, with no contract.)
Verizon stopped signing people up for unlimited-data plans last summer. The industry as a whole is moving away from the plans, since the data capacity of their networks is limited.
Under the new plans, subscribers can stop worrying about monitoring the number of calling minutes or text messages their families use in a month, but they'll have to keep a close eye on data consumption. Verizon will allow subscribers to adjust their data allowance from month to month, but if they go over their monthly allotment, that will cost $15 per gigabyte.
The data allowances start at $50 per month for 1 gigabyte. That's enough for prudent two-smartphone users who use Wi-Fi a lot, but Verizon recommends getting 2 gigabytes for $60. After that, each additional 2 gigabytes cost an extra $10 per month.
Under "Share Everything," Verizon will stop charging extra for letting devices act as "mobile Wi-Fi hotspots." That means subscribers who have a recent smartphone could use it to connect a tablet to the Internet, without paying the extra $10 per month for a tablet.
Verizon had telegraphed the move toward shared plans, but had not revealed the details or pricing.
Verizon Wireless is a joint venture of New York-based phone company Verizon Communications Inc. and Vodafone Group PLC, a British cellphone company with wide international interests.
Monday
Apple Set to Unveil Next-Gen iOS
Apple is expected today to unveil iOS 6 , the company’s next iteration of its mobile operating system at its 5-day annual Worldwide Developers Conference (WWDC).
“We have a great WWDC planned this year and can’t wait to share the latest news about iOS and OS X Mountain Lion with developers,” said Philip Schiller, Apple’s senior vice president of worldwide marketing.
Apple unveiled iOS 5 at last year’s event, and speculation has run rampant recently about what kinds of changes Apple will unveil this year. Reports of deep integration of Facebook and a new Apple maps product are tops on most lists of possibilities.
Ahead of today’s event, Google’s Executive Vice President of Android, Andy Rubin, tweeted last night that Google is currently activating 900,000 Android devices per day. Incidentally, Rubin also put an end to rumors that he might be leaving Google, tweeting, “No plans to leave Google. Oh, and just for meme completeness -- there are over 900,000 android devices activated each day :-)”
Apple will undoubtedly push back against Rubin’s claims during today’s opening keynote at WWDC. The company has a long history of running down its impressive stats, revealing everything from device activation numbers to total number of app downloads.
Apple’s late CEO, Steve Jobs, famously contended that Android’s numbers were inflated, because he said Google included upgrades in its activation numbers, while Apple only includes new activations.
As of the first quarter 2012, Android controlled 56.1 percent of the smartphone market by operating system, according to Gartner. Apple’s iOS followed in second place with 22.9 percent of the market, up from 16.9 percent in the first quarter of 2011.
“We have a great WWDC planned this year and can’t wait to share the latest news about iOS and OS X Mountain Lion with developers,” said Philip Schiller, Apple’s senior vice president of worldwide marketing.
Apple unveiled iOS 5 at last year’s event, and speculation has run rampant recently about what kinds of changes Apple will unveil this year. Reports of deep integration of Facebook and a new Apple maps product are tops on most lists of possibilities.
Ahead of today’s event, Google’s Executive Vice President of Android, Andy Rubin, tweeted last night that Google is currently activating 900,000 Android devices per day. Incidentally, Rubin also put an end to rumors that he might be leaving Google, tweeting, “No plans to leave Google. Oh, and just for meme completeness -- there are over 900,000 android devices activated each day :-)”
Apple will undoubtedly push back against Rubin’s claims during today’s opening keynote at WWDC. The company has a long history of running down its impressive stats, revealing everything from device activation numbers to total number of app downloads.
Apple’s late CEO, Steve Jobs, famously contended that Android’s numbers were inflated, because he said Google included upgrades in its activation numbers, while Apple only includes new activations.
As of the first quarter 2012, Android controlled 56.1 percent of the smartphone market by operating system, according to Gartner. Apple’s iOS followed in second place with 22.9 percent of the market, up from 16.9 percent in the first quarter of 2011.
T-Mobile Readies 1900 MHz HSPA+ Test Network at Moscone
T-Mobile USA is testing an HSPA+ network on its 1900 MHz PCS spectrum at San Francisco’s Moscone Center, where Apple will hold its World Wide Developer Conference (WWDC) next week.
In a statement, T-Mobile said the test network was deployed as part of a routine network upgrade inside Moscone Center and timing ahead of Apple’s event was purely coincidental. The network would allow attendees with an unlocked AT&T iPhone to use T-Mobile’s test network with one of the carrier’s prepaid data plans.
T-Mobile reports that it has over 1 million iPhones on its network already. As part of its $4 billion network modernization initiative, the company plans to refarm its 1900 MHz PCS spectrum, currently devoted to 2G customers, for use in deploying an HSPA+ network that would welcome a more diverse group of unlocked devices onto its network.
The company has said it hopes to have that network rolled out in a number of markets by the end of the year.
Without actually offering the iPhone as part of its portfolio, the question of the day for T-Mobile has been how to attract new customers without Apple’s iconic device.
During a first quarter earnings call, CEO Philipp Humm stressed that 45 percent of T-Mobile's gross customer additions were unsubsidized, SIM-only customers who bring their own devices to the network.
To add some perspective to how bleak T-Mobile USA's fourth quarter 2011 customer losses were, consider that the loss of 510,000 branded contract customers in the first quarter was in fact a 28 percent improvement sequentially.
Apple's WWDC runs from June 11-15 at San Francisco's Moscone Center. Google will hold its IO developers conference at the same location less than two weeks later, from June 27-29.
In a statement, T-Mobile said the test network was deployed as part of a routine network upgrade inside Moscone Center and timing ahead of Apple’s event was purely coincidental. The network would allow attendees with an unlocked AT&T iPhone to use T-Mobile’s test network with one of the carrier’s prepaid data plans.
T-Mobile reports that it has over 1 million iPhones on its network already. As part of its $4 billion network modernization initiative, the company plans to refarm its 1900 MHz PCS spectrum, currently devoted to 2G customers, for use in deploying an HSPA+ network that would welcome a more diverse group of unlocked devices onto its network.
The company has said it hopes to have that network rolled out in a number of markets by the end of the year.
Without actually offering the iPhone as part of its portfolio, the question of the day for T-Mobile has been how to attract new customers without Apple’s iconic device.
During a first quarter earnings call, CEO Philipp Humm stressed that 45 percent of T-Mobile's gross customer additions were unsubsidized, SIM-only customers who bring their own devices to the network.
To add some perspective to how bleak T-Mobile USA's fourth quarter 2011 customer losses were, consider that the loss of 510,000 branded contract customers in the first quarter was in fact a 28 percent improvement sequentially.
Apple's WWDC runs from June 11-15 at San Francisco's Moscone Center. Google will hold its IO developers conference at the same location less than two weeks later, from June 27-29.
Sprint's Clearwire Stake Dips Below 50%
Sprint's stake in Clearwire has dropped past the 50 percent mark, allowing the operator to increase its voting rights without taking on Clearwire's default risk.
Sprint sold off 77.4 million voting shares last June to reduce its liability for Clearwire's debt should the company go into bankruptcy, since its majority stake in Clearwire made it vulnerable to claims from creditors.
Recent fundraising efforts by Clearwire have reduced Sprint's economic interest in the company to below 50 percent, from 54 percent a year ago. The change allowed the company to reclaim full voting rights while avoiding cross-default risk.
"Given recent equity issuances by Clearwire, Sprint’s economic interest has declined to below 50 percent," a Sprint spokesman said today in a statement. "Now that our economic interest has fallen below 50 percent, we are reclaiming our full voting rights so that our voting rights and economic rights are once again aligned."
Sprint has bought back all the shares it gave up a year ago, according to a document Clearwire filed this morning with the Securities and Exchange Commission
Sprint sold off 77.4 million voting shares last June to reduce its liability for Clearwire's debt should the company go into bankruptcy, since its majority stake in Clearwire made it vulnerable to claims from creditors.
Recent fundraising efforts by Clearwire have reduced Sprint's economic interest in the company to below 50 percent, from 54 percent a year ago. The change allowed the company to reclaim full voting rights while avoiding cross-default risk.
"Given recent equity issuances by Clearwire, Sprint’s economic interest has declined to below 50 percent," a Sprint spokesman said today in a statement. "Now that our economic interest has fallen below 50 percent, we are reclaiming our full voting rights so that our voting rights and economic rights are once again aligned."
Sprint has bought back all the shares it gave up a year ago, according to a document Clearwire filed this morning with the Securities and Exchange Commission
Tuesday
Last Lawsuit Dropped Against FCC White Space Order
The last remaining court challenge to the FCC's white space order was withdrawn Monday when the wireless microphone industry formally dismissed its petition for review of the regulations.
The cancellation of the suit removes the last legal hurdle for the regulations, which allow devices to use vacant spectrum between television channels.
The white space spectrum has been touted for a variety of uses, including rural broadband, machine-to-machine connectivity and so-called "Super Wi-Fi." The opening of the white space spectrum in 2010 marked the FCC’s first significant release of unlicensed spectrum in more than two decades.
The Alliance of Resident Theatres and a number of other groups including News Corporation, the National Basketball Association and the National Football League filed a Petition for Review in a District of Columbia Appeals Court in 2009.
The suit reflected concerns that FCC's 2008 white spaces order would create significant reliability issues with wireless microphones, which also use white space spectrum.
Under a second set of FCC white space regulations put forth in 2010, locations where wireless microphones are used, such as theatres and stadiums, can be registered in the FCC's white space database, protecting them from interference from other devices using the unlicensed spectrum.
It also set aside two channels for wireless microphones in 13 major markets. White space devices also must be able to "sense" wireless microphones as an added precaution against interference.
The dismissal of the suit comes one month after the National Association of Broadcasters dropped its petition for review of the 2008 white space order. The court had held both lawsuits in abeyance as the FCC reviewed petitions for its second report and order.
The FCC issued an order addressing the petitions for reconsideration on April 5, resulting in the cancellation of the two remaining complaints against the white space regulations.
The cancellation of the suit removes the last legal hurdle for the regulations, which allow devices to use vacant spectrum between television channels.
The white space spectrum has been touted for a variety of uses, including rural broadband, machine-to-machine connectivity and so-called "Super Wi-Fi." The opening of the white space spectrum in 2010 marked the FCC’s first significant release of unlicensed spectrum in more than two decades.
The Alliance of Resident Theatres and a number of other groups including News Corporation, the National Basketball Association and the National Football League filed a Petition for Review in a District of Columbia Appeals Court in 2009.
The suit reflected concerns that FCC's 2008 white spaces order would create significant reliability issues with wireless microphones, which also use white space spectrum.
Under a second set of FCC white space regulations put forth in 2010, locations where wireless microphones are used, such as theatres and stadiums, can be registered in the FCC's white space database, protecting them from interference from other devices using the unlicensed spectrum.
It also set aside two channels for wireless microphones in 13 major markets. White space devices also must be able to "sense" wireless microphones as an added precaution against interference.
The dismissal of the suit comes one month after the National Association of Broadcasters dropped its petition for review of the 2008 white space order. The court had held both lawsuits in abeyance as the FCC reviewed petitions for its second report and order.
The FCC issued an order addressing the petitions for reconsideration on April 5, resulting in the cancellation of the two remaining complaints against the white space regulations.
Monday
AT&T, Rivals Square Off on Interoperability
AT&T and its smaller competitors faced off on whether the lower 700 MHz band should be made interoperable in statements filed with the FCC late Friday, the deadline for the first round of comments on the issue.
The FCC is considering a proposal to collapse AT&T's band class 17 - comprised of the lower 700 MHz B and C blocks - into band class 12, comprised of the lower 700 MHz A, B and C blocks. The agency has not yet taken up establishing interoperability in the upper 700 MHz band held by Verizon Wireless.
Integrating the two bands could make it easier to roll out LTE service on lower 700 MHz band 12 spectrum, as many regional operators with band 12 spectrum have struggled to find compatible LTE equipment and devices because their band lacks the scale and maturity of the ecosystem for AT&T's band 17. It could also make it easier for regional providers to get LTE roaming.
AT&T argued that the change would open its customers to "substantial" interference problems from the A block, which lacks a guard band between broadcast television transmissions in adjacent Channel 51.
“If we were forced to band 12, we would open up our customers’ LTE devices to interference challenges they don’t see today,” Joan Marsh, vice president of AT&T’s federal regulatory affairs, said in an interview. “We would move from a world where we are protected from interference to one where we would have to try to overcome significant interference issues.”
Tests conducted by Vulcan Wireless showing interference is not a major problem are "unreliable," AT&T said.
"With literally nothing on the benefit side of the scale, any risk of harm should doom the unprecedented regulatory intervention the A Block licensees propose," AT&T said in its comments.
If the FCC puts the proposed interoperability mandate into effect, AT&T says it would have to abandon its development of band 17 LTE devices, overhaul its device design plans and reconfigure its network to add in support for band 12.
AT&T also argued that establishing interoperability would not help band 12 operators with legacy CDMA networks, as AT&T's LTE phones fall back to its GSM network and would have to be redesigned to fall back to CDMA. The Rural Cellular Association, which represents many band 12 licensees, has called that argument a "red herring."
Regional providers including U.S. Cellular and C Spire Wireless, both owners of band 12 licensees, claim that AT&T is overstating the interference issues to maintain its unique band class, precluding its competitors from benefitting from its LTE ecosystem.
"The proponents of Band 17 offered various technical justifications for the creation of that subset band, but real-world testing has shown those justifications were simply a pretext for a band that serves as an anti-competitive tool to further entrench the wireless duopolists," C Spire said.
The interoperability issue goes back to the FCC’s 2008 auction of the 700 MHz band and the 3GPP’s subsequent standards-setting process. When the spectrum was auctioned, the lower 700 MHz A, B and C blocks were a single band, band 12. Smaller providers buying up lower A block and B block licenses expected the equipment and phones they bought would be compatible with the entire band.
But after the auction closed, AT&T and its vendors then asked the 3GPP to create a separate band class for its lower B block and C block holdings to protect it from Channel 51 interference in the A block. The 3GPP agreed to create band 17, and AT&T’s LTE network and devices became incompatible with band 12.
C Spire Wireless recently sued AT&T, Motorola Mobility and Qualcomm over the interoperability issue, alleging the three firms colluded to manipulate the standards-setting process and delay development of equipment and devices for band 12. The Mississippi-based provider has been unable to use the band 12 spectrum it paid $191.5 million for at the FCC's 2008 auction because it can't procure compatible smartphones. The LTE network it plans to launch in September will instead run on its AWS and PCS holdings, a strategy that gives it less headroom to handle customers' data demands.
The FCC is considering a proposal to collapse AT&T's band class 17 - comprised of the lower 700 MHz B and C blocks - into band class 12, comprised of the lower 700 MHz A, B and C blocks. The agency has not yet taken up establishing interoperability in the upper 700 MHz band held by Verizon Wireless.
Integrating the two bands could make it easier to roll out LTE service on lower 700 MHz band 12 spectrum, as many regional operators with band 12 spectrum have struggled to find compatible LTE equipment and devices because their band lacks the scale and maturity of the ecosystem for AT&T's band 17. It could also make it easier for regional providers to get LTE roaming.
AT&T argued that the change would open its customers to "substantial" interference problems from the A block, which lacks a guard band between broadcast television transmissions in adjacent Channel 51.
“If we were forced to band 12, we would open up our customers’ LTE devices to interference challenges they don’t see today,” Joan Marsh, vice president of AT&T’s federal regulatory affairs, said in an interview. “We would move from a world where we are protected from interference to one where we would have to try to overcome significant interference issues.”
Tests conducted by Vulcan Wireless showing interference is not a major problem are "unreliable," AT&T said.
"With literally nothing on the benefit side of the scale, any risk of harm should doom the unprecedented regulatory intervention the A Block licensees propose," AT&T said in its comments.
If the FCC puts the proposed interoperability mandate into effect, AT&T says it would have to abandon its development of band 17 LTE devices, overhaul its device design plans and reconfigure its network to add in support for band 12.
AT&T also argued that establishing interoperability would not help band 12 operators with legacy CDMA networks, as AT&T's LTE phones fall back to its GSM network and would have to be redesigned to fall back to CDMA. The Rural Cellular Association, which represents many band 12 licensees, has called that argument a "red herring."
Regional providers including U.S. Cellular and C Spire Wireless, both owners of band 12 licensees, claim that AT&T is overstating the interference issues to maintain its unique band class, precluding its competitors from benefitting from its LTE ecosystem.
"The proponents of Band 17 offered various technical justifications for the creation of that subset band, but real-world testing has shown those justifications were simply a pretext for a band that serves as an anti-competitive tool to further entrench the wireless duopolists," C Spire said.
The interoperability issue goes back to the FCC’s 2008 auction of the 700 MHz band and the 3GPP’s subsequent standards-setting process. When the spectrum was auctioned, the lower 700 MHz A, B and C blocks were a single band, band 12. Smaller providers buying up lower A block and B block licenses expected the equipment and phones they bought would be compatible with the entire band.
But after the auction closed, AT&T and its vendors then asked the 3GPP to create a separate band class for its lower B block and C block holdings to protect it from Channel 51 interference in the A block. The 3GPP agreed to create band 17, and AT&T’s LTE network and devices became incompatible with band 12.
C Spire Wireless recently sued AT&T, Motorola Mobility and Qualcomm over the interoperability issue, alleging the three firms colluded to manipulate the standards-setting process and delay development of equipment and devices for band 12. The Mississippi-based provider has been unable to use the band 12 spectrum it paid $191.5 million for at the FCC's 2008 auction because it can't procure compatible smartphones. The LTE network it plans to launch in September will instead run on its AWS and PCS holdings, a strategy that gives it less headroom to handle customers' data demands.
Samsung Galaxy S III hits Sprint, T-Mobile on June 21
Credit- (CNET)
Samsung Electronics' latest flagship smartphone, the Galaxy S III, will arrive at Sprint Nextel and T-Mobile USA on June 21.
At Sprint, the highly anticipated smartphone will cost $199.99 for the 16 gigabyte version, and $249.99 for the 32GB version. T-Mobile also confirmed it would arrive on the same day, but didn't provide pricing information.
U.S. Cellular will also get the phone, but it doesn't launch with the regional carrier until July.
Samsung is preparing for a major launch of the Galaxy S III, with Verizon Wireless and AT&T also committing to selling the phone this summer. Over the past two years, Samsung has worked to build up the Galaxy S brand. It now stands as the second most line of smartphones behind Apple's iPhone.
That Samsung is selling the phone in the U.S. speaks to the strength of the Galaxy S name. When the phones first emerged here, the carriers insisted upon slight tweaks and variations to the device, allowing each carrier to stand apart. Even the second generation got slight tweaks, including a different name at Sprint, with Verizon opting to skip the phone entirely.
Like the iPhone, the Galaxy S III is consistent across carriers.
The Galaxy S III will come with a dual-core Snapdragon processor optimized for 4G LTE network, a slight change from the quad-core processor that the international version uses. That's because there currently aren't any quad-core processors that play well with cellular radios, similar to the situation with the HTC One X.
The Galaxy S III is a slim handset with a 4.8-inch HD Super AMOLED display. It supports 4G LTE and HSPA+ 42 speeds, has an 8-megapixel camera (hands on) with 1080p HD video capture and playback, and a bevy of software features to complement and enhance Android's Ice Cream Sandwich operating system.
Samsung has also given the Galaxy S III 2GB of RAM and a very large, removable 2100mAh battery. There will be support for 16GB or 32GB of expandable memory, depending on the carrier, it seems.
Another nice touch, the Galaxy S III is topped with Gorilla Glass 2.0, a stronger, thinner type of the premium glass brand that Corning, Gorilla Glass' maker, unveiled this past January at CES.
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