Verizon Jacks Up Prices, Because it Can
Scott Moritz
Scott Moritz
The New York phone giant plans to hike prices and cap data in a bold bid to establish itself as the premium network in U.S. wireless.
With its two-year lead on super-fast 4G LTE technology, a full arsenal of Google (GOOG) Androids and the Apple iPhone, Verizon has decided it has the clout to ditch the unlimited data plan and raise its monthly prices $5 above main rival AT&T (T).
Smartphone Service Plans
The move comes amid a surge in smartphone sales. And Verizon seems eager to capitalize on the trend while it can. Curiously, the telco has decided to use the red-hot phone climate to raise its entry price $10 to $70 a month. Verizon also eliminated its low-price tier that would have helped bring in the economy class.
"They are skimming the high rollers for now. Why should they lower the price when they have demand?" said Gartners' Ken Dulaney.