Verizon Wireless in the US has introduced a Master Plan for Data services – Share Everything. How does the plan work? The “Share Everything” plans are structured around shared data and multi-device access. Customers choose a shared data allowance and then pay a monthly fee per device to access that data. The plans seem to strike a reasonable balance between stimulating demand and maintaining prices while limiting exposure to pressure on voice and text usage. Customers choose a shared data allowance and then pay a monthly fee per device to access that data.
Verizon’s “Share Everything” plans have been very successful and contributed to a reacceleration in mobile service revenue … this is in combination with maintaining the strongest mobile network in the US and the most advanced 4G roll-out in the US.
Verizon’s “Share Everything” Plan offers savings for consumers but consumers continued to spend similar amounts as previous plans by increasing data caps and/or increased connected devices. Part of the debate on the success of these plans for Verizon was will the consumer reduce their spending habits with these new plans. Verizon’s experience suggests, NO.
To be clear, this accelerating revenue growth was not solely due to the launching of these new plans, but rather was a key factor along with Verizon’s “best in class” mobile network in the US and advanced 4G roll-out plans vs. its peers. Verizon has been very successful in the implementation of these plans because as at 1Q13, 30% of its post-paid base is now on the plans.