Tuesday, January 25, 2011

Verizon's iPhone Data To Be Unlimited, For a Time Only - Brilliant Move To Steal Customers From Others

Today, we got confirmation that the data plan for the Verizon iPhone will sport only the wireless data plan for $30 a month.  Plus, it's only for a limited time though Verizon Wireless declined to say what this time limit would be.

Two quick thoughts.  First, great move by Verizon to provide unlimited data.  Otherwise, this added an incentive for switchers, current customers, and newcomers alike to get the iPhone from Verizon rather than ATT.  

Second, without provide a time limit on when they'll discontinue offer unlimited data for potential iPhone buyers, mobile warriors do not know when that'll end.  Perhaps, Verizon might provide a future date when they will discontinue the wireless data plan or it might just end it abruptly without any warning.  Facing the unknown, buyers are more incline to pull the trigger than take their time getting it.

I'll be honest.  If I need a phone, I'm inclined to get the Verizon phone just to lock in the wireless data plan.   

And by not revealing just how long Verizon will keep this unlimited data plan going, the uncertainty and the expected overwhelming demand for the iPhone works in its favor.  

Furthermore, ATT is no longer sure what it should do in response.  Should it start offering unlimited data plan once more to keep users from defecting or provide parity with Verizon to attract new users?  Or should ATT wait until Verizon discontinues the unlimited data plan, which it may not if it continues to find success attracting more customers than ATT.

Anyway, this is what competition is all about, folks.  

So by not saying when it'll take away the unlimited wireless data plan, Verizon Wireless is sitting in a good position – maybe it will end it at some future data or it might not.  The point is, you don't know and I don't know and that just might be enough to get us to lock ourselves in with VZW sooner rather than later.  And judging by the comments on various blogs, that is exactly what is going to happen.

Brilliant move.

More at WSJ.

Note;  Some commentors on Appleinsider are alluding Verizon's announcement on limited time for the unlimited data plan as collusion with ATT.  Very interesting.  I'm suspicious enough of the carriers to believe this as well.

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