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Guglielmo 12/4/2012 | 10:11:24 PM
re: US Wireless Data Needs to Be Cheaper While I agree $100 per month will limit initial acceptance to only the most aggressive users, I applaud VZW for getting the price *structure* right. They initially offered pricing by time duration (clearly flawed for an always-on service), then pricing by byte volume (better but still unfamiliar and thus worrisome to users). A flat rate price is familiar and easy to budget.

I imagine VZW has started with a high price to throttle initial demand, as they iron out early provisioning problems. (Recall the horror stories of early DSL.) Also, they might as well collect these premium prices from early adopters while they can. No different than the high-priced early days of mobile phone service. They can lower price as provisioning simplifies and demand grows.
lrmobile_kr 12/4/2012 | 10:11:10 PM
re: US Wireless Data Needs to Be Cheaper Dittoes ... It's not a bad strategy and $100 per month is not a bad price break.

The real difficulty with GPRS and 1xRTT is that they share the spectrum with the voice services. Too much initial demand may result in poor latency for data services and poor availability for existing voice customers.

At $5 per megabyte, people may be scared of getting on due to uncontrolled content like pop-ups and Microsoft security updates.

Who do you think the early adopters will be? I think outside salesmen - Real Estate, Food Distribution, Medical Supplies... also insurance claims adjusters and police units where timeliness of accurate data is important. Can they afford $100 per month - only the market will tell. It's hard to bring prices back up when they are low to begin with.

I can imagine you will see $100 per month including 802.11 hot spot coverage from some competing carriers soon. This would satisfy the hunger for mobility and bandwidth, but not at the same time.

kr
Wireless-Steve 12/4/2012 | 10:03:54 PM
re: US Wireless Data Needs to Be Cheaper I agree that Verizon is getting it right with an "all you can eat" data package from the start. Corporate and government entities are going to compare that to the other major carriers' pay-as-you-use pricing plan (and the better speeds 1xRtt is giving compared to GPRS) and seriously make the switch. AWS wont make the plunge until they loss some substantial business but VoiceStream is looking like they will go for an unlimited price plan soon enough.

The new data networks are a catch-22 for the carriers. They need people to use it to pay for it, but people wont use the new networks until the prices come down. *sigh*
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