Verizon Wireless going to tiered pricing

Bloomberg News / September 25, 2010

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NEW YORK — Verizon Wireless, the largest US mobile carrier, will introduce tiered pricing in the next four to six months to take advantage of the growth in data traffic as it rolls out its faster, fourth-generation network.

The company will add the new pricing as it rolls out new services, Ivan Seidenberg, the chief executive of Verizon Communications Inc., said at a Goldman Sachs Group conference yesterday.

Verizon’s 4G network, which uses long-term evolution technology, has been set up in 30 markets, including 50 airports, since June, Seidenberg said. The company will make the service available to customers this year.

Tiered plans typically give users a wider array of price options for different network usage and eliminate unlimited packages. Dallas-based AT&T Inc., the second-largest mobile carrier, introduced tiered plans this year for its 3G network.

Seidenberg said that the widespread availability of the Verizon’s LTE network will encourage smartphone companies, including iPhone-maker Apple Inc., to build 4G devices.