Wireless data goes for flat-rate pricing

Communications company Verizon Wireless is applying an Internet-access pricing model to its mobile, high-speed data business,...

Communications company Verizon Wireless is applying an Internet-access pricing model to its mobile, high-speed data business, offering high-use enterprise customers what it calls an "all you can eat" monthly flat-rate price of $99.99 (£68.70).

Last week's announcement followed one made earlier this month by digital wireless company Nextel Communications, which offered a flat-rate service at $54.99 (£37.78) per month.

However, the service offered by Verizon Wireless, the largest cellular carrier in the US, has a throughput of 40K to 60Kbit/sec, compared with Nextel's 25K to 30Kbit/sec.

Analysts predicted that other carriers would follow the lead of Verizon and Nextel.

Gartner analyst Phil Redman said he viewed the Verizon flat-rate deal as a good one for users, noting that he can easily consume 12 Mbytes of data in an hour. "I would say [Verizon is] heading in the right direction and has set the bar for pricing on wireless data packet services," he said.

Gary Robertson, chief technology officer at Delphi, also welcomed the news. "Per-megabyte [pricing] does not make sense in a PowerPoint culture. My e-mail runs 20Mbytes a day," Robertson said.

However, Robertson said that reliability and coverage were still an issue.

Verizon plans to introduce flat-rate pricing on its 1X Express Network next week, even though it has not yet rolled out its 1X Express Network nationwide, preferring to wait until it has turned on its entire national third-generation service this summer.

Read more on Operating systems software

Start the conversation

Send me notifications when other members comment.

Please create a username to comment.

-ADS BY GOOGLE

SearchCIO

SearchSecurity

SearchNetworking

SearchDataCenter

SearchDataManagement

Close