Verizon announced an $80 data plan that has no limits. Customers can view and download as much as they want from the Internet without worrying about overages. Previously, Verizon charged $20 for each additional 1 GB of data over the 8 GB allowed. On Verizon’s website, the new unlimited plan is advertised for $45 per line for 4 lines per month.
Verizon is offering an unlimited data plan to keep pace with other wireless providers including T-Mobile. Their unlimited plan help attract millions of customers. T-Mobile added 3.3 million customers last year. Verizon only added 2.3 million. They hope to gain more customers with their unlimited data plan.
Verizon is reducing their 2G and 3G networks and allocating spectrum to 4G. Users can expect 4G speeds for the first 22 GB of data. After that, they may experience slow downs.
Verizon hired Ronan Dunne, an executive from UK mobile provider O2, to improve their data offerings. He expressed his views on the matter with a Verizon employee, who recalled the conversation to Fortune:
When you looked at what customers really wanted, it was clear that they felt like they either had to choose an inferior network to get the unlimited peace of mind or basically have this data anxiety as he coined it.
The problem Verizon faces is that they have less bandwidth than their smaller competitors, yet more data is passing through their network. Last year, there was an increase of 45% in network traffic.