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Verizon: LTE to usher in speed and usage-based data plans, Apple iPhone

November 17, 2010 by Kelly Hodgkins - Leave a Comment

Verizon LTE
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Verizon LTE

Verizon is rolling out LTE and the carrier may be modifying its current data plans to reflect the changes that accompany this next generation mobile broadband service. Rather than keep conventional data plans which are tiered according to MB or GB of usage, the wireless carrier is considering plans that are tiered by speed in addition to usage.

The plans would let customers pick a speed and a usage amount that suits their needs. A person who travels for work once in a blue moon but needs a data connection for these infrequent occasions may want a plan that has higher speeds, but a lower data cap. Likewise, a customer that is always connecting to twitter and email may want  plan with a higher data allotment but lower speeds.

Verizon’s upcoming LTE service is expected to deliver speeds between 1Mbps to 12MBps, so Verizon has a wide range that it can use to setup tiered data plans. Done wisely, these tiered plans can accommodate a range of customers and their varied usage patterns. Speaking with the Wall Street Journal, Verizon CEO Ivan Seidenberg discussed these tiered plans, but did not comment on whether the carrier would keep its unlimited data plan.

Interestingly enough, Seidenberg notes that the carrier’s LTE service has caught the attention of Apple and was a factor that helped Verizon secure the iPad. Seidenberg stopped short of confirming the existence of a Verizon iPhone but did state:

“If the iPhone comes to us, it’s because Apple thinks it’s time. Our interests are beginning to come together more but they have to take steps to align their technology with ours.”

Though this comment from Seidenberg is not a confirmation, it is nonetheless encouraging. Signs from the rumor mill suggest that Apple is currently developing a CDMA iPhone and, according to Seidenberg’s standards, is already taking steps to align the iPhone with Verizon’s wireless network. If Apple is really moving towards Verizon, then it won’t be long until the two companies are on the same page and ready to release the iPhone on the nation’s largest wireless carrier.

[Via WSJ]

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