NEW YORK (RNN) - Fundamental changes in the way wireless companies do business are forcing smartphone users to make smarter choices. Verizon's announcement earlier this month to do away with its unlimited data plan left Sprint as the only company in the market that still offers customers the once ubiquitous "all-you-can-eat" data plan.
If you're considering a new wireless carrier, you can help yourself if you do a little homework, shop around for the plan that best suits you and then learn how to manage your data usage.
Verizon is offering new customers a choice between several plans: $30 a month for two gigabytes, $50 a month for five gigabytes and $80 a month for 10 gigabytes. Current Verizon customers are grandfathered in with unlimited data until their contracts expire.
Verizon follows AT&T and T-Mobile in ending unlimited data plans for its smartphones. AT&T ended its all-you-can-consume plan in June 2010, and its website says it now offers tiered data plans of 200 megabytes for $15 per month, two gigabytes for $25 per month and four gigabytes for $45 per month.
T-Mobile ended its unlimited data in April 2011 and now offers data plans of 200 megabytes for $24.99 per month, two gigabytes for $39.99 per month, five gigabytes for $49.99 per month and 10 gigabytes for $84.99 per month, according to its website.
Some existing Verizon customers were none too happy with the change.
"I feel like we have been somewhat cheated. I feel like they should at least give some kind of reduction rate to help us out," said Daniel Posey, a Verizon customer whose contract expires next year.
"[Unlimited] is like an all-you-can-eat buffet… I used a ton of my smartphone capabilities," he said.
How to manage your data usage
There are several ways to keep an eye your data usage without incurring any fees. Time's tech blog Techland has some good advice on how to monitor your data consumption.
Verizon customers can dial #DATA, a number prescribed in every phone's contact list, to get an idea on how much data they're using a month.
Verizon offers a calculator online that lists the average amount of data used each month. Verizon claims a web page costs about 1.5 megabytes, and an hour of YouTube videos is 200 megabytes.
Compress your data usage? There's an app for that. Certain apps are available in the Apple and Android markets that reduce data usage for certain tasks.
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Posey says he uses his unlimited data to watch video clips, movie trailers, check email and browse the internet. He says he doesn't often check how much data he's using.
Verizon's new tiered data plan has also caused some of its customers to reevaluate upgrading their phones.
Shane Hoffman is a graduate student and part of a family plan under Verizon. While he doesn't have a phone that uses data, he says he may get a smartphone that requires a data plan in the future. He doesn't see the two gigabyte plan as a good deal down the road since future smartphone models will require more data.
"I think they're making a big mistake because right now they're No. 1, and they assume they'll stay that way," said Hoffman.
Brenda Boyd Raney, the executive director of corporate communications for Verizon Wireless, says the switch from unlimited to tiered data plans won't have an effect on the network service itself since 95 percent of Verizon customers use fewer than two gigabytes of data a month.
"The reason we made the change is, as we plan for the future when much of the computing we will do in the future will be wireless, we need to put in place the tools that allow us to continue to provide customers with the nation's best and most reliable wireless service," she said in an email.
"By moving to a usage-based pricing model, customers will pay for the services they use," she said.
With Verizon ending its all-you-can-eat data plan, Sprint is the only national network to still offer unlimited data to its customers.
Sprint has made the most of the fact using it to marketing itself on national television commercials as the only network that still offers the unlimited plan. Experts differ on whether this will help or hurt the company.
Bill Ho, vice president for consumer services at Current Analysis, told MediaPost that this is a very smart idea for Sprint to do.
"Sprint is in a great position as we go into the holiday selling season," he said. "Smartphone adoption is continuing to (explode) and with many of the new models launched in late Q3 and Q4, they can (make) their case and solidly differentiate against AT&T and Verizon Wireless."
But Roger Entner, an analyst at Recon Analytics, told CNET that this marketing campaign could attract enough new customers to create a strain on Sprint's network.
"If everything goes well, they will be a victim of their own success by next spring," he said.
In the meantime, Posey says he will most likely stick with Verizon when his contract expires because of their good service. Hoffman says he may switch to another carrier.
"If Sprint's prices stay the way they are, I'm looking at 75 percent switching," he said.
Copyright 2011 Raycom News Network. All rights reserved.
In response to the growing demand for Verizon’s voice, data and television products and services, the company has opened a retail store in Yonkers, NY. (Source: Verizon)
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