Friday, February 22, 2008

Verizon overage charges to be added to EVDO data plans?

There is a lot of chatter about forthcoming changes to Verizon's BroadBandAccess EVDO Data plans in early March.

Rumors point to a less expensive monthly plan with a lower data threshold than the current data plan's 5 GB limit, and new overage charges for both plans.

Not just overage charges. Ridiculously high overage charges. How so? Well, the current Verizon EVDO data plan is $59.99/mo and offers 5 GB of un-throttled broadband wireless capacity... or about $12/GB or about $0.012 per MB. That's +/- 1.2 cents per MB on a real calculator.

The rumored overage charges are an incredulous 40 to 100 times more than the rate being charged per month!

Yeah, we understand the need for the overage charge to be a deterrent... but conspiracy theorists wonder if this isn't just some new way to profit from folks who blindly pay their bills?

The first thing many customers calling us about these rumors asks us is, "Can these charges be avoided by signing up NOW, before the charges are in black and white on their site?"

Many questions remain about how these rumored overage charges might affect existing customers -- Will they be 'grandfathered in' and not subject to overage charges? or will they also be subjected to the same overage charges... and if they are, isn't that a breach of their original contract?? Would a breach of contract allow existing customers to quit their contract without a termination fee?

Back when Verizon called their broadbandaccess plan "unlimited", Verizon cancelled accounts of some customers who exceeded the 'unlimited' data threshold... Makes sense, right? Their stupidity raised such a ruckus that the NY AG's office made Verizon pay back a million bucks to those customers who had their accounts cancelled, but were never given back the money they paid for hardware.

We remind you of that, just to explain the precedence for stupidity that Verizon has already set. Would they be stupid enough to apply rumored overage charges to existing customers who were not originally subject to them?

Why, yes... they could be that stupid.

We won't know for sure if/when/who/why... probably until a month after they start the rumored overage charges.

At this point in time, if you have been considering Verizon EVDO data plans and don't have the option of getting Sprint EVDO... we believe it IS A GOOD time to sign up before any changes take place. If for some reason, you do not get 'grandfathered' in, remember you have 30 days to cancel, so you have a way out.

If you are about to get Verizon mobile broadband service, now may be the perfect time to do it.

For the latest discussion on the topic see: