Verizon Chief Claims Unlimited Data Plans Defy Physics

When my contract with Verizon Wireless expired a few months ago, I hightailed it over to Sprint, lured to the nation's third largest carrier by its guarantee of unlimited data for life. I could have had something similar with Verizon, as I had been grandfathered into the carrier's unlimited data plan, but that meant paying full price for a phone upgrade. So, I jumped ship, and according to Verizon chief Lowell McAdam, I'll sink with my new carrier because unlimited data just isn't feasible.

During an investor conference today, he talked about how the wireless world is becoming more heavily focused on video, which is one of the reasons why unlimited data plans aren't sustainable.


"With unlimited, it's the physics that breaks it," McAdam said, according to CNET. "If you allow unlimited usage, you just run out of gas."

That's the reason why Verizon ditched its all-you-can consume data buffet, and AT&T surely agrees. However, Sprint and T-Mobile both offer unlimited plans at tantalizing price points. Are they headed for a brick wall? It's tough to say. As far as McAdam is concerned, it's a challenge because there's limited spectrum available for things like streaming video.

I also found it interesting that Verizon seems content to carry a higher price tag than the competition. While speaking to investors, he said, "We never have and never will lead on price," adding that a price war probably isn't imminent.
Via:  Verizon
ScottLail one year ago

So Much CRAP, they just do not want to pony up for the bandwidth at the head in's to handle the traffic

They are money grubbing assholes just like ATT.

Here do this

if you have an android phone go to settings on 4.2 or above set your data logger for one month and look at how much you use. For me its around 2gigs my wife is about 3 and she regularly sends test shots to clients from hers

even at unlimited levels you really are not using a huge slice. are we capped at home? most places can say no so why should we be when we are mobile it is all a money thing. /rantoff

Pancake effect one year ago

Verizon had $29 billion in revenue last year from what I've read. I call bull on this one. What it should really say is Verizon's profit margins will slightly decrease if they were to invest in a better infrastructure. THEY WILL MILK YOU FOR EVERYTHING THEY CAN.

They are the only company that charges you to have a corporate e-mail program on your phone. For example I use Good for Enterprise on my phone. Verizon charges you an additional 15 dollars a month on top of your data plan for corporate e-mail. Isn't that the point of a data package? Sprint doesn't do that.

Verizon is a monopoly in most areas. I wish I could switch to any other provider, but they are the only one that is in my area.

NickModrowski one year ago

Pure garbage. I suppose he expects the method of data transmission to be static as well. We're never going to innovate again and develop more efficient video codecs to transmit more data in the same amount of bandwidth.

realneil one year ago

His opinion should be referred to as the physics of greed. I'm on an unlimited plan (and my wife) but don't use all that much DATA. Our phones defer to my wireless network when we're home.

All of the cell carriers make incredible profits and all they want is more, more, more,........

dnw1962 one year ago

I use Ting which uses Sprint towers. I have 3 phones on my plan and combined we rarely top 3Gb a month. I have to admit the signal quality is often poor and I drop calls alot. But at generally less than $100 a month for 3 lines I deal with it. On Verizon a similar plan would be more than double what I pay now. Unless my company wants to pay for it I am never going back to Verizon.

Sevags one year ago

Scotlail, we ARE capped at home!!!!! My Timewarner cable had an undisclosed cap and I think they eventually made the cap official? And my AT&T Uverse does have a datacap I think it's something like 250gb a month, but for now the caps are high enough that most users will never come close.

On my att ip5 IF I connect to my wifi at home I use about 2-2.5gb a month, if I do not connect to wifi at home I hit upwards of 6gb a month.

As much as I dislike AT&T's plans, I have absolutely no problem with the service, my friends on Verizon say the same but at least I pay less than them for the same thing.

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