Earlier this week Verizon announced its new Share Everything plan, which Adam wrote about here. The short version? Verizon customers will soon be paying an access fee per device, and they'll buy a data plan to share among all devices.
There are two important industry trends that Verizon's pricing change have cemented. First, this marks the end of unlimited data plans. Second, it instead defines voice and SMS as an unlimited commodity.
Voice and SMS now come baked into the access fee. So in a world where people are using more and more social media, email and instant messaging, Verizon is dumping separate pricing for voice minutes. That's because in the long term, voice can't be charged for separately.
Right now there still is a separate charge. How else do you explain a smartphone access fee costing $40 but a tablet costing only $10? Tablets can consume far more bandwidth, yet the access fee is one quarter the amount? This is Verizon's attempt to keep collecting voice revenue as long as possible. They're just hiding it with a new name.
But think forward a few years. Everyone is using smartphones. Skype is available on all platforms (hopefully even BlackBerry!) Networks are all 4G. Connectivity is at an all-time high. Voice becomes another app. It's already possible to run independent VoIP clients on mobile devices, but it's just not something you do unless you're a tech geek and it won't truly be practical without 4G.
Things are gonna change. Carriers are quickly moving into a world where they can't charge for voice AND bandwidth. They know it. They're milking it as long as they can.
In Verizon's case, it's also interesting to note that their new data plan will cost most individual customers more money. They'll lose some customers as a result of this. But families will save money, and family plans are stickier.
So Verizon will lock as many families as possible into its new "money saving" plans now. But as time marches on, industry forces will reduce the access fees per device, and Verizon will make a killing by (likely) being much slower to drop their own pricing.
Personally, I think Verizon's new plan essentially confirms the death of the dumb phone. Plain old flip phones will cost you a $30 device access fee, whereas a smartphone only costs $10 more. It's a no-brainer.
As far as the carrier business goes, I think Verizon will hold strong in the USA. The only real competition comes from AT&T, seeing as T-Mo and Sprint just don't have the financial strength to compete with this duopoly.
But in other markets, where there are multiple strong wireless carriers, I imagine that the same thing will happen, in time. And with multiple strong competitors we'll end up seeing device access fees that are much lower. This will be tricky for carriers. They're truly becoming dumb pipes, as much as they don't want to admit it.
In its early days, RIM was so strong because of deep carrier relationships. Unfortunately, that's no longer a winning strategy. Carriers don't have the power anymore. Customers don't respect carriers. They put up with them.
With the death of the dumb phone, commoditization of voice and SMS, and the end of unlimited data plans, the world BlackBerry 10 must compete in is very different.
I'll end this post with a question. What can RIM do to give its users the best possible data sharing experience on its devices? They've got Bridge. They've got Mobile Hotspot. What other bright ideas could they implement to strategically benefit from the changes happening in the mobile industry?
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ibcop Jun 15, 2012 at 10:17 am
The way it stands now, I will pay more for the exact same thing that I have now. I understand I don't have to move to this "shared plan" - at least not yet. And I think it will be a matter of time before all the other carriers do it as well. Just bendin' ya over and not in a good way. Rat bastards.
Kandoo-BB Jun 15, 2012 at 10:21 am
yawn...big red sux ......$$$$ anyway it can.
dcrystal99 Jun 15, 2012 at 10:22 am
unlimited dead? only in the USA.
Canada baby! Unlimited and going strong.
Kandoo-BB Jun 15, 2012 at 11:15 am
yes its very well alive in the United states as well.
Sprint anyone? or how about the pre paid markets like virgin,boost and cricket who offer unlimited data talk text for a low monthly fee...unlimited is far from dead in the U.S
mikepraba Jun 15, 2012 at 11:56 am
6 GB data is considered as unlimited?
BruvvaPete Jun 15, 2012 at 1:15 pm
With a BB 6 GB is at least twice as much data than you need. I have 1GB on my plan and I've never come close to 500MB... and I'm a heavy user (who at times forgets to turn on WiFi at home). Rock-A-Berry! You can't go wrong.
longhairbilly Jun 16, 2012 at 6:26 am
Everyone is different, you can't tell someone how much data is enough based on your use.
drseusswwm Jun 16, 2012 at 8:16 am
I have 1 gig and I am connected to wifi at work (no net at home) and I go over that pretty much every month. So either your not a heavy user or yoyr usage is FB and twitter.
xenrobia Jun 16, 2012 at 1:46 pm
You must be talking about one of the small carriers. Rogers, Bell and Telus got rid of unlimited data plans awhile back. I should know, I had a big scrap with Telus about losing my unlimited data plan not long ago and I looked into both Bell and Rogers data plans at that time.
jonno_atamaniuk Jun 16, 2012 at 10:24 pm
Only three carriers have "unlimited" data. All three are the brand new carriers who are looking to attract new clients as quickly as possible. Here's the thing to bear in mind: 1 - you leave one of their "zones", you no longer have your unlimited data, you're looking at sometimes even $1/MB (not economical for me, even on a Blackberry). I'm going to have to agree with another user, on a blackberry, unless you're downloading a lot of music or doing tons of video watching / downloading, you shouldn't be going over 1GB of data. Not without extreme usage... in which case if you're never leaving a zone, an unlimited plan would work. Me, I'm good with 1GB, and if I go over, my plan flexes.
DocDRM Jun 15, 2012 at 10:24 am
How about "View on . . ." other BB phones, not just BB to PlayBook? I often want to share something with my son or GF, so they grab their BB and go to the same site I'm on, costing basically double or triple the data necessary - let them instantly share my screen with only one phone consuming data.
Also - what about joint gaming BB to BB via BlueTooth (app developers key here) - thinking instant head to head play / group drawing games, etc.
How about a "data request cache" that is optional. Say I want to get info on a product I notice while out and about, or a billboard catches my attention. I can enter search terms for it and the BB asks me "Search now or when connected wi-fi?" Like an offline availability in reverse. When reconnected to wi-fi, up pops my recent inquiries.
PostMortem Jun 15, 2012 at 10:58 am
This sounds interesting and I agree with it.
Realistically speaking though, BlackBerry just needs to have a powerful phone running all (or all the best rated/most downloaded) apps that are on other App Markets in order to become a dominant brand again and regain substantial market share in the markets where they're hurting (USA).
I used to feel that we didn't need tons of Applications, but it is becoming more and more evident that I am in a very small percentile. Even close ones that were on BlackBerry have left and the only thing that they talk about afterwards, is not how efficient, powerful, elegant etc. Their new non-BB phone is, but all the "cool" Apps they have.
If BlackBerry pulls out good hardware (which they seem to be heading that way) and have the App library that can compare with the competition, they will no doubt will draw at least those that used to be on BlackBerry back and likely tons more.
br14 Jun 15, 2012 at 1:52 pm
Effectively it's already here.
I forget the company name, but they sell devices to retailers that allow enabled phones to receive bluetooth data as you walk along the street.
Or there's always NFC.
kyleheney Jun 15, 2012 at 10:31 am
How about BBM Instant Voice Chat or "Instant Calling" (in addition to Instant Messaging and hopefully BBM Video Chat in BB10). Just click a BBM contact and start a Voice Chat (or basically a phone call)... integrates into BBM and uses Data instead of cell minutes. Could also somehow partner up with Skype so that Skype contacts are integrated into BBM.
guerllamo7 Jun 15, 2012 at 10:44 am
RIM has their own servers and network so your point of BBM Video Chat at no or very low data cost to consumers is very interesting.
The problem is carriers will attack any cost savings to consumers at their expense. Look at what ATT did to Bridge.
I do think texting being a part of the general cost is a hit on BBM but not fatal since BBM has many other advantages besides being free.
Hmmm....BBM Video Chat at no data cost... Now there is an idea that could be pretty big.
chi-town311 Jun 15, 2012 at 10:34 am
Has anyone confirmed how the current Corporate Discounts will be applied to the new plans?
BaconMunch Jun 15, 2012 at 10:45 am
Let's think of the biggest data hogs that people will want in the future that are related to communication, VOIP and Video Chat. I don't know what are their plans with NOC and Cloud Integration, but if going BlackBerry platform meant saving data via compression or working out bonus data with the carriers because BlackBerry data is more efficient, they might have something there.
stevedee Jun 15, 2012 at 10:51 am
I've done the voice thru BBM many times. I forsee voice and data billing going to peak just like electrical billing, but clearly if BB can offload automatically to wifi or related systems it would be a major incentive to switch.
Curve 8330 CDMA (eww, I know, u/g to Torch soon!)
Winner of EA Mobile SE Playbook - rockin' it!
flnetman62 Jun 15, 2012 at 10:53 am
BlackBerry get with the program - open up Skype!!! it is a firmware/OS lock only.
Open up the NOC - compress all data, not just BlackBerry
BB Connect on all devices not just BB
Hardware is dead, close the plants as needed and start focusing on software.
how many customers even knew about BB Professional, BB Express, Unite, MVS, Fusion (what a waste of time - too little too late), DEC (direct Enterprise Connection).
Want to keep something a secret? Give it to RIM Marketing.
jonno_atamaniuk Jun 16, 2012 at 10:36 pm
Hardware isn't entirely dead, RIM still puts out a sturdier, longer-lasting handset than the vast majority of competitors. That's not marketing, that's personal experience. All my blackberries have been replaced by choice, not because they stop working. My android handsets, on the other hand... and let's not even get into the durability of the iPhone...
revtech Jun 15, 2012 at 10:58 am
Not sure about your comment that families make out better . . A family plan is 90 for the first two phones and 10 per after that. Given a max of 5 phones that is 120. So at a minimum 5 dumbphones is 150 and 5 smartphones 200 . . Its more in either case.
If our 5 phones on the old plan each had their own data plan that would be 120 + 150 (5 x 30) for a total of 270. On the new plan it would be 200 for the phones and 60 for data . . 10 less but BUT they all share one plan whereas for 10 more they each have their own plan!
I am completely at a loss to figure out how this is a win for anybody (except of course verizon). I totally understand that the company needs to make money, but I don't see how this is attractive at all except as an incremental step toward forcing everyone to have a smartphone.
Unless of course I'm missing something :/
ekafara Jun 15, 2012 at 11:06 am
It seems they have taken down their BlackBerry10 sign. ; )
the_sleuth Jun 15, 2012 at 11:12 am
Chris, one of your better articles. RIM has to leverage it's strengths, use NOC as a highly secure VOIP with BBM integrated. Gov'ts and enterprise would pay a premium for this service.
pjkarasek Jun 15, 2012 at 11:23 am
$50 for unlimited everything on Tmo. Verizon can keep their scams and price gouges, I'm quite happy where I'm at.
GeneralHerzog Jun 15, 2012 at 1:01 pm
Maybe this will force people back into caring about data consumption and how BB's are best at controlling ones data rates? (least I'm hoping that BB10 stays the course on that front)
Be interesting to see how many people who whine about BB's not sending a whole email through without promting for a "more" download will change their tune in 5 years when those picture laden spam messages are adding up the data consumption costs.
jrohland Jun 15, 2012 at 1:09 pm
This is going to be awesome. When all traffic is digital data packets. Voice is just another data packet. Now, when all I care about it data, I shop among the carriers for data service at the best price, quantity, coverage and reliability. NO MORE CARRIER CONTRACTS. Shop for your mobile access like you shop for gasoline. Any SIM will do. We are going to be huge winners and the carriers will be bandwidth wholesalers. You will be able to buy bandwidth at the grocery store.
I already plan to use my PlayBook 4G (when it comes out) this way. I'm not going to buy it locked on to any carrier. I'm going to buy SIM cards at the best deal for me.
Mojave Jun 15, 2012 at 3:08 pm
What happens if you are a single person (no family) with only one phone?
kjm2010 Jun 15, 2012 at 5:34 pm
Adopt friends! Literally or figuratively
smasha132 Jun 15, 2012 at 5:37 pm
since they have a unified INBOX why not have a unified Video INBOX....so all with all the video clients (BB video, skype, oovoo, yahoo, msn etc.)
with this inbox I don't need to visit 5 different sites or open different apps and it has made things sooo much more convenient.
just a thought
dfb8085 Jun 15, 2012 at 9:15 pm
I hope att learns from verizon's mistake. I am with att and have been for over 20 years. I have a primary phone with 2 additional lines for my wife and daughter at $9.99 each. With verizons new deal that would be $40 a piece. Not such a good deal for me. So whatever they want to call it an access fee or a screw you fee the end results is the same. I pay more money. I am about caught up in all this technology crap. I am probably older than most people on here at 57 years old. I certainly did not cut my teeth on all this smartphone stuff so it would be easy for me to just do without or move back to a dumb phone as its called on here. Anyway all this really lies with att and what they decide to do. As I am approaching retirement it gives one a different perspective on monthly outlay. I would advise you youngsters on here to give careful consideration to wasteful monthly outlay.
Pete6 Jun 16, 2012 at 3:34 am
"Customers don't respect carriers. They put up with them.". How true. One the other hand, carriers hate phones. What carriers want is to sell you minutes and megabytes. They can cut this up anyway they want baut that's the bottom line.
For a carrier, the phone is a means to an end. The end, for them, is simply to take your money whilst giving you the minimum you need to function in a manner that will not break their network.
RIM is already doing a great deal to help its users get the most out of their dataplans with its OTA compression. RIM could do more to help users by pressuring carriers to allow things like tethering to be simply a part of the normal datplan. Dat is just data after all and the carrier makes its mony by selling megabytes. I feel it is wrong for carriers to differentiate how users spend their data.
Data use could be further optimized by allowing BlackBery users to choose betwenn push email (very network inefficient for high volume users) and interval+demand based pull email.
66cuda Jun 16, 2012 at 4:28 am
i pay $20 a month originally unlimited down to 5g, not the best could be more, i would give up a phone if big red get all to do this
harpcomposer Jun 16, 2012 at 11:17 am
I don't text, I have it "turned off" so nobody can text me either. I use my Curve only for emergency calls when I am out, and to keep in touch by email for the sake of my business. Probably I use 15 minutes of phone per month....and maybe send out one email every few days (I work from home, so I prefer one of my computers for answering emails and such. I still pay about $75 per month...just for this. If it goes UP for all of the things I don't use at all, I will cancel my blackberry's act and buy a little pre-paid phone. Bye bye, Verizon.
Rootbrian Jun 16, 2012 at 4:28 pm
That CDMA doesn't allow voice and data at at the same time. It certainly is NOT 4G as they label it. If they upgrade to EvDO Rev. B or C, then it'll be amongst the ranks of 3G or 3.5G. Just providing some insight. Besides, not many care about surfing and talking anyways.
qbnkelt Jun 16, 2012 at 6:33 pm
Well I just ported my one line over from VZW back to AT&T. Got a brand new spankin' Bold which will get more frequent updates. So....happy camper.
Mamaluka Jun 16, 2012 at 11:19 pm
I'm on vzw. I pay for a 4G aircard (5G). I have my grandfathered main line (or am I hearing that is now gone and capped at 5G?), I have a new line for my daughters Droid 4, also with 5G. I don't even come close to 1 gig on my aircard, I'm wasting my grandfathered unlimited on my 9930 because...well, because I'm normal, and my daughter uses the most data, but never goes over. So I waste about 10 gigs a month.
When I walked into a vzw store and asked about mobile hotspot for my kids droid, they told me 25 bucks on top of everything I just described above. They're f*ckin nuts. I wouldn't give them another dime for data. I'm out of contract on the aircard, and soon to be on my line with the 9930, I refuse to re-up. And in a year, I won't re-up my daughters line either. Lately vzw's phone service has sucked (compared to a year ago in NY/NJ), and I'm already looking to test another carrier. Can't believe the dropped calls I get lately on the NJ turnpike.
latingeo Jun 18, 2012 at 12:18 am
Sprint is the only way to go