Tiered Pricing for Wireless Internet
Verizon is the latest major carrier to end unlimited data plans for its wireless internet service. The company plans to introduce a tiered pricing model in place of the unlimited data plans, which would offer 2GB of data for $30 a month, 5GB for $50 and 10GB for $80.
The decision is a coping strategy to deal with the flood of bandwidth-hogging devices which are now flooding the carrier networks. Some critics view the plans as a major threat to mobile online innovation due to the limits they impose on usage. T-Mobile is trying to remain competitive with the other carriers by promising that customers who exceed their month data limits will not receive overage charges. However, they will instead receive significantly slower internet service until their next billing cycle.