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.

[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.

[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.

[#8]

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?

[#10]

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.