Verizon Gouging Customers As Data Acquisition Costs Shrink
Verizon Wireless has long complained that the cost of building its 4G LTE data network and maintaining that infrastructure is tremendously high. However, recent earnings reports have shown that the costs associated with transmitting mobile data are decreasing for Verizon as the company continues to increase customer data bills.
Verizon launched its Share Everything plans last summer, and those plans have increased data costs for customers who attach their various smartphones, PCs, and tablet devices to their shared data plan.
The New York Times’ Brian X. Chen notes that the average monthly revenue per wireless account grew 6.6 percent to $146.80 during the holiday quarter. However, Verizon is apple to transmit that data at a greatly reduced cost structure. Chen reveals:
“The company says the 4G LTE network is five times more efficient than its predecessor, 3G … That means the more people who buy devices that connect to the newer network, like the iPhone 5, the more money the company will eventually gain.”
Many customers also fail to realize that their new 4G LTE mobile data-enabled phones eat through their data plans at a faster rate. High-definition videos can be delivered to faster mobile devices, and, therefore, those data hungry videos eat through mobile data.
Because FCC auctions for mobile spectrum can cost billions of dollars, wireless carriers hide behind those seemingly high acquisition costs to justify their mobile data prices. In the meantime, Verizon Wireless continues to gouge its customers with increasingly high mobile data costs.
Do you think Verizon Wireless will eventually lose its customer base because of greedy data plans that gouge customers wallets?