Silly Data Rates

[kazetsukai]

I'm a day one Xoom owner (purchased off-contract with the 1GB data plan), and I have to say, the data plans are silly. Its the 28th, on the 24th I bought my Xoom. I received an email yesterday telling me I'm now at "0.893GB of  1 GB" usage... this is with a few AmazonMP3 albums downloaded, purchasing stuff off the Android store, Web browsing and Maps / Nav. This is in 3 Days!

Come on, Verizon? You couldn't forsee that Tablets will have more data usage than phones when coming up with your plans? Lets break it down here.

$20/1GB:

This is a nonsense plan/rate for a high end tablet, some people can go over this by reading HTML email with lots of images. $10/1GB would be a good starting point, but the 1GB data just isn't enough for this device.

$35/3GB:

This is the lowest value plan I can imagine a Xoom owner not burning through almost overnight and is probably the best value proposition. For 175% the price of Tier 1, you get 300% the data, and you aren't burning even half a grand a year.

$50/5GB:

This is where the value prop starts dropping like a rock. 143% the Price for 167% the data from the $35/3GB plan. The price is 2 1/2 Tier 1 pricing for what was a $30 data plan in phone land just a few months ago.

$80/10GB:

Here's where you hit the barrier: Tablets aren't a "necessary" form factor yet- and you're shelling out nearly $100/mo for a data plan that still has a cap! Change this /slightly/ to $75/Unlimited and you have most people sold, why the short sighted limits here?

Bottom line: The plans need to start lower and top out at unlimited. People from the DROID 1 push are used to unlimited and are willing to pay a premium to not worry about it, so add the top Tier not as just another increment, but as a value proposition.

If you look at my current usage trend, it means that I'm likely to use nearly 1GB /3-4 days, in which case, there just isn't a Tier for me. No unlimited Tier = fail. So what am I going to do to get around my current dilemma? Tether the Xoom to the DROID, not up my data plan rate.

Anyone else have an opinion on this?

[Jax_Omen]

Yeah, I have an opinion. Why in the world aren't you using wifi where available, and your data plan where wifi can't be found?

[demmo86rt]

I think Verizon full well realizes the data needs for tablets and has priced them to make a profit.  That is what businesses do, right?  These data prices are the same for netbooks as well and, if they were not selling enough of them to make a profit, they would drop the prices.  If you really don't like the prices, speak with your wallet, it's the only way they will hear you.

[kazetsukai]

@Jax_Omen: I'm so often between APs that it just doesn't make sense. Tablets are a -portable- form factor, so do you really think it makes sense to have to use Wireless APs all the time? Why am I buying the 3G/4G service at all then, so that I have to micro manage it down to email?

My point is, the data should start lower and top tier should be our unlimited option. I can't see this as being unreasonable, more as being short-sighted on VZW's part. And no matter what anyone thinks- Verizon makes money either way.

[reallyniceguy]

With the 1 gig plan, I would NOT EVEN try to download mp3s. Some of those files are over 2 megabyes. How many MB are in a gig? 1024? so thats only around 500 songs? and thats ONLY if you are downloading songs, what about web useage, youtube, video? Use wifi or get a higher data plan.

[kazetsukai · Accepted solution]

@reallyniceguy:

But therein lies my point- if I were to get a "higher" data plan, I'd prefer top Tier to be unlimited, because that is where I'd jump to. 

I refuse to see wireless carriers as those providing a service different from any ISP, and Verizon encourages this with their Net Neutrality initiatives. The DROID launch was a big part of that. Telling me to use WiFi is effectively telling me to use another data carrier, and for a device with a Verizon logo on it. That is a common recommendation, but when you think about it, it is also a nonsense recommendation.

I'll probably up to the 3GB plan, but I eagerly, eagerly await that Top Tier Unlimited. 

By the way, songs are usually 6-10MB each depending on length, since Amazon encodes MP3 at 320k VBR.

[#7]

It's not Verizon who couldn't foresee the data use for a Xoom tablet. Why would you even think about a 1 GB plan? I love how people like to tell Verizon what they "need" to do. Verizon needs to do whatever it wants to run it's business. Consumers need to be smart enough to understand their own needs and purchase a product that meets their needs.

[kazetsukai]

@jimfitzgerald: 

No matter how you look at it, its a joke to sell a device to someone with the above mentioned data Tiers when they already have a device (MotoDROID) that has unlimited data for $30. Its absolutely ridiculous. I don't mind paying extra ($50, $60, $70) as long as I don't have to worry about usage. It isn't that I ignorantly opted for the cheapest data plan and ended up here, I opted for it as a trial (I'm not on contract, so I can try the different rates all I want), and at a mere 3 days I can tell you, that these data rates are silly. 

This is overcharging the customer for something they already net a high enough margin on, providing less value for more money. I'm telling you, there is no value proposition here. There isn't even an attempt. That is short sighted and will cost them customers.

Having a low price low end and a higher price unlimited shows that you're about providing value. The best value prop in all the Tiers is the $35/3G, and that is higher than my DROID's $30/Unlimited. How can you possibly justify that to me, an existing customer?

[#9]

There are no unlimited data plans for computer devices. The only unlimited data plans are for smartphones. If I were to purchase a Xoom, I would purchase a 5GB plan and hope I could make do with that. There is nothing shortsighted about how Verizon structures and prices their data plans. They are trying to maximize profits given their capacity. That's exactly what they are supposed to do. They are not a charitable organization.

[JFizDaWiz]

I'm about to call in and change from the 3GB to 1GB. I've had the Xoom for over a week now and have only used 60MB of mobile data and that's because I updated apps in the car. My house, coffee shops, smoke shops, restaurants all have wifi and I hardly even need the data plan but good to have on the go

[kcrudup]

Yeah, I used a little over 400MB last month. For me, the $20 plan proved to be just as perfect as I'd needed it to be, with the ubiquity of WiFi nowadays- using 3G only for those few times you're totally unconnectable otherwise.

[daddyd351]

OP I agree we need a unlimited plan but knowing Verizon, that most likely will never happen. I'm pretty sure most phone users, use just as much data as tablet users do.  I would just use wi-fi as much as possible and 3G only when needed if I were you.

[mendiesel]

Wifi dude

[kcrudup]

1GB is perfect for some users; I've been a heavy Android user for a while, but only got the 1GB plan when I got my Xoom as I have WiFi connectivity in so many places I only expect to use it when completely away from anything else. So far, I've used 29MB in 7 days.

[droidsw]

The data plan rates temporarily had me looking at netbooks/notebooks, until I found out the cheapest data plan for them is $50, That brought me back to a tablet. Either way, data costs money.

Then the word of the wifi only Xoom rumored to be coming to Sam's Club for under $550 really got my attention. For my use, primarily living room, den, around the house only, the wifi only version will work. No data plan needed, since I won't be using the Xoom for anything but internet.

Am I missing something, or is it that simple?

[jasnmar]

That's pretty much what I arrived at as well. I ended up buying the 3g version and just not subscribing to a data plan. Yea, I paid extra for a 3g radio that will probably never be used, but at least I get a free upgrade to 4g that won't be used either:-D
Jason

[leecason]

In Verizon Wireless' defense, they do offer a bandwidth usage calculator that is inline in the Xoom signup process. I was going to get the minimum 1GB until I used that calculator and saw how easily you can eat up 5 GB of usage. So, I signed up for the two-year contract with 3 GB data plan. I have WiFi at home, so I expect that 3 GB will be sufficient, but won't know for sure until I've had more time to use the device.

It doesn't help that the Verizon Wireless data usage app is broken/buggy but hopefully they will be able to fix that sooner rather than later.

I have had a couple of other smart phones in the past but cancelled the data plan shortly after getting the phone because the user experience was just too painful for me. I spend 10+ hours in front of dual 21" monitors and have little patience trying to view web pages the size of a postage stamp. The 7 inch tablets are now pretty good but not big enough to render my tech books viewable. The Xoom with 10 inch screen is the first non-laptop portable device that I've owned that  is large enough to be comfortable for me for Internet use, so I expect that I will use it for that purpose. Using my GoDaddy webmail is painful because of the way they use frames, but my company's Outlook Web Access works better than I expected for a non-Microsoft browser. I don't have a Crackberry like most of my associates, but now I can pay poor attention in meetings and read email on my Xoom like my peers.

Sure, I would like to pay less for the bandwidth--who wouldn't? But I have seen worse bandwidth plans, and as Verizon Wireless gets more usage history, I expect that these plans will get better over time. It is usually a lot easier to drop your prices than to raise them, and since this is all kind of new, Verizon Wireless needs to manage costs while they figure out how users and the market will accommodate this relatively new form factor for personal computing.