Thursday, June 14, 2012

PwC Data Shows Why Verizon Wireless Pricing Moves Make Sense

The new Verizon Wireless pricing plans, which make U.S. domestic voice and text messaging unlimited and a part of the basic subscription, while shifting the variable cost of service entirely to the mobile data plan, make sense. 


Consumer spending on broadband access is climbing at a robust 15-percent annual rate. With a continuing shift to consumption of video, the rate of consumption could increase even faster. So it makes sense that Verizon Wireless would want to shift pricing to a mode where data usage is variable, as that is where the additional costs of providing service will grow.

pwc-global-em-spending-growth-in-2011-june2012.png

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