LoneWolfArcher
Silver Member
It has nothing to do with money. It has everything to do with data usage.
Their 3G was so slow that most people jumped on WIFI as soon as it was available. But they started getting killed in marketing by AT&T for 3G speed. So when they set-up their 4G network they made sure it was fast in order to head-off AT&T's marketing about speed.
The problem is that 4G is so fast that most people on unlimited plans would no longer bother jumping on WIFI anymore. This meant that their network usage was going to go up exponentially.
Enter the tiered data plans. The point isn't to generate more revenue, it is to control consumer usage. 2 GB and 4 GB plans mean people will jump on WIFI when available to try to keep their usage below the limit.
Kind of smart on Big Red's part really. Make your 4G faster than WIFI, but set-up your data plans to try to get people to jump on WIFI as much as possible. Advertise the fastest 4G network, grandfather unlimited users in to avoid a customer service nightmare. I have to say, well played by Verizon.
Their 3G was so slow that most people jumped on WIFI as soon as it was available. But they started getting killed in marketing by AT&T for 3G speed. So when they set-up their 4G network they made sure it was fast in order to head-off AT&T's marketing about speed.
The problem is that 4G is so fast that most people on unlimited plans would no longer bother jumping on WIFI anymore. This meant that their network usage was going to go up exponentially.
Enter the tiered data plans. The point isn't to generate more revenue, it is to control consumer usage. 2 GB and 4 GB plans mean people will jump on WIFI when available to try to keep their usage below the limit.
Kind of smart on Big Red's part really. Make your 4G faster than WIFI, but set-up your data plans to try to get people to jump on WIFI as much as possible. Advertise the fastest 4G network, grandfather unlimited users in to avoid a customer service nightmare. I have to say, well played by Verizon.
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