Nov
14
2011

Verizon Hopes LTE ‘Double Cap’ Promotion Eases 3G Congestion – Also Still Experimenting With Consumer Pricing


Last week we noted that Verizon Wireless is running a promotion allowing customers to get double their usual data allotment on capped plans — if they buy a new LTE smartphone and sign a two-year contract. Verizon Communications CFO Fran Shammo told investors last week that the new promotion (which so far doesn’t have a clear end date) is all about nudging users from their EVDO to LTE network, in the process helping ease congestion caused by the EVDO-only iPhone. Shammo also says the move is to help Verizon “understand consumer behavior” so it can further develop an LTE pricing strategy (which so far has consisted of the same strategy they use for EVDO: caps with $10 per GB overages).

 

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