Is 4G worth the price? I say no...

[kodiak799]

What I would love from Verizon is an all around 4g package that would include both home and wireless internet. Right now I pay $40 for home internet and $30 for 3g a month. If 4g is as fast as they say it is (which would be faster than my home internet) and they could offer an unlimited plan like this for $70, I'd definitely take it. It will never happen though.

My thoughts precisely. With docking, it's a real possibility. For rooted users, even with wireless tethering. HOWEVER, what may be lost in that docking deal is VZW may have nixed that because their revenues could take a substantial hit. They make a good chunk of change on mobile broadband and something like the Atrix is a real threat to that (and, ahemmm, curiously the Thunderbolt has no HDMI out?).

They're not stupid. I'm sure VZW has considered the possibility that LTE users are going to tether and dock and burn data to their heart's content. That's why they almost have to cap to protect their business model. But if I plug, say the Bionic, into a dock and it begins immediately hot spotting to give me LTE at home, then my indifference point is $80 ($30 mobile and $50 home broadband). And the beauty is this works because LTE can do voice and data simultaneously.

But I struggle to predict the pricing of such capability. VZW makes $80 on LTE mobile broadband for $10 a month. From their perspective, $30+$80=$110. Or maybe not, maybe a large part of that segment does not have a smartphone, or indeed no VZW voice plan at all.

Hmm, curiously the smartphone data plans appear to be undergoing revisions as I can't find info. Off the top of my head, it was 2gigs of tethering for $20/month.

So my thoughts for smartphones are $30 for 2-5gigs of LTE. Maybe bump to $40 or $45 for unlimited. And maybe you see $20 for 2gigs of tether and $40 for unlimited tether (which brings that ditch home broadband price to $80-$85 all in).

 

[UrbanBounca]

I can guarantee that VZW will not make pricing that benefits the customer. If you want 4G, you'll pay for it.

 

[kodiak799]

I can guarantee that VZW will not make pricing that benefits the customer. If you want 4G, you'll pay for it.

That's not how you run a successful business. Tech that drives profitability creates value for the customer, in this case value that the customer and VZW can share. You're taking a very narrow view that revenues are going to be driven off the same installed base. VZW has an opportunity here to create some value for the customer (while also getting more money from that customer, it is not mutually exclusive) PLUS grow the installed base because of that value proposition created.

Just as an example, I would consider ditching my home broadband plan for unlimited LTE tethering. I pay $50 for home broadband to a non-VZW carrier. VZW can create value for me by offering unlimited LTE tethering at say $60 and they now make $30 more off of me than before.

 

[UrbanBounca]

They're not going to offer unlimited tethering. You can dream all you'd like, but the fact of the matter is that VZW will gouge every dollar they can, and people will continue paying it.

 

[kodiak799]

but the fact of the matter is that VZW will gouge every dollar they can, and people will continue paying it.

Right, just like they did with the LTE mobile broadband plans....oh wait, they DIDN'T change anything on the plans.

 

[cobra 03 termi]

My tootsie rolls only have 2% more chocolate but I tell everyone that they are filled with "blazing" amounts of chocolate, and that a magic lightening bolt will shock your tongue with flavor. I then charge $20 more for my special 4g lightening bolts, but it only cost me like $1 to upgrade my chocolate.

Capitalism is a beautiful thing : )

^:icon_ banana::icon_ banana:

Also have to remember that VZW is a publicly traded company and shareholders will not tolerate declining (or even flat) profit margins. If they didn't do everything possible to keep, if not raise their profits they would be devalued quickly and go bust. Likewise w/o generating such profits they can't continue to get the capital they need to expand their offerings and secure their position in the market (again, basic economics folks... not to turn this political but stop listening to socialist media about "big greedy companies" and think for yourselves, besides you want your 401Ks to increase right... economics 101, invest in the companies and products you use/purchase and then your 'paying yourself').

Sent from my DROIDX using DroidForums

Ahhh and that is where the problem lies. While companies like verizon and many others worry about there share holders constantly, us little people suffer. When will we wake up and realize that this country is in trouble? All we do around here is worry about high profits. Not profits, HIGH profits. Dont get me wrong, i love my smart phone but it is reasonably priced imo right now. You all understand im sure that with 4g come no more unlimited anything. That means no more pandora, online games, endless surfing for info, etc... This my friends is what you call a monopoly.

 

[dezymond]

I think Verizon would offer 4g once their network can handle all the incoming traffic. They've researched the use of their 3g network extensively and I believe are taking into consideration the increased amount of traffic with 4g, especially with the option of running it through home computer use.

At least I hope that's what they're planning on...

 

[tonydelite]

Still not meeting the 4G Spec...4G - Wikipedia, the free encyclopedia . Only thing that bothers me about the whole thing is these companies play off the ignorance of its customers.

From the very link you posted...

"On December 6th, 2010, ITU announced that current versions of LTE, WiMax and other evolved 3G technologies that do not fulfull "IMT-Advanced" requirements could be considered "4G", provided they represent forerunners to IMT-Advanced and "a substantial level of improvement in performance and capabilities with respect to the initial third generation systems now deployed." [6]"

Which is a misquote of the actual ITU press release, which states:

" IMT-Advanced is considered as “4G”, although it is recognized that this term, while undefined, may also be applied to the forerunners of these technologies, LTE and WiMax, and to other evolved 3G technologies providing a substantial level of improvement in performance and capabilities with respect to the initial third generation systems now deployed."

Regardless, most consumers aren't going to care that the ITU does or doesn't arbitrarily call current technologies "4G". It's a hell of a lot faster than 3G, and that's the bottom line.

 

[takeshi]

I am sure they are making well enough now on us, to cover the expenses of their new 4g network

Sources? Or is this based on gut feeling?

 

[Stelv]

I am sure they are making well enough now on us, to cover the expenses of their new 4g network

Sources? Or is this based on gut feeling?

Yea It is just a gut feeling, but I am sure I can dig up some dirt, lol. I do not want to knock Verizon though, 2 of my friends work there and they are happy. They make a killing on sales though, so I can see how they have enough to cover the cost of 4g. They are selling product and plans like crazy. Sales are through the roof.

 

[Beka27]

Wow, 68% are saying to stick with a 3G phone...

I think the Bionic is going to be a nice phone... but I was expecting... more. Maybe once I have it in hand I'll be totally swayed...

 

[kodiak799]

If they raise prices and/or cap too aggressively, everyone should just sit back and wait. VZW has to show strong growth with LTE to investors. If people aren't signing up as expected they will have no choice but to sweeten the deal.

Of course, alternatively I suppose they could respond by bumping 3G prices and/or capping, especially since the IPhone is liable to start straining the network. But to me that is the great thing about the IPhone - VZW will HAVE to upconvert people in order to accommodate that monstrous spike in 3G demand.

Personally, I think the LTE deal will be 5gigs at $30 a month which is just great for me and so I don't care about the other details. But I'm still not shelling out retail for an LTE phone so I'll wait for a special promotion or early upgrade. Alternatively, they may do what you see with cable providers and offer a discounted initial period for LTE, maybe 3 months or a year at $30 before going up to $40. Who knows.

 

[dezymond]

Wow, 68% are saying to stick with a 3G phone...

I think the Bionic is going to be a nice phone... but I was expecting... more. Maybe once I have it in hand I'll be totally swayed...

The coverage will be nowhere near as good as 3g. I'm sure people will switch over to 4g once they find out the price and the coverage expands over the next 2-3 years. 4g is only in major markets now(at least to my knowledge), not enough to really warrant a switch from the general public yet.

 

[kodiak799]

The coverage will be nowhere near as good as 3g. I'm sure people will switch over to 4g once they find out the price and the coverage expands over the next 2-3 years. 4g is only in major markets now(at least to my knowledge), not enough to really warrant a switch from the general public yet.

LOL...good point...It's only in 38 cities although VZW claims that will actually cover about 1/3 the users (overall marker of 100M) and, hmmm, poll says @ 30% will upgrade! Although, I suspect the concentration of smartphones is a little higher in major cities.

 

[xRITE AIDEx]

And this is why I'll be buying the iphone4 next month, cause 4g is not a top priority for me, and the look of the droids just doesn't appeal to me.