All good things must come to an end. And this summer, it seems a good thing going at Verizon will similarly draw to a close.
Appearing at an investors conference Tuesday, Verizon Chief Financial Officer Francis Shammo said Verizon will soon end unlimited data plans for its recently acquired iPhone.
The switch to tiered data plans may begin as soon as this summer. At present, Verizon Wireless allows unlimited Web-surfing for $30 a month for iPhone users.
Released last month on the Verizon network, the iPhone, Shammo revealed, had to be introduced with an unlimited plan on the table because Verizon “didn’t want to put up a barrier” to potential iPhone buyers.
Shammo’s comments are being taken as an indication that unlimited plans will end at the same time Apple introduces the iPhone 5 this summer.
Credit Suisse analyst Jonathan Chaplin tells Reuters that “I would take that comment as a pretty strong signal there’s an iPhone refresh coming to Verizon in the third quarter.”
Chaplin went on to add that investors may be apprehensive about another new iPhone release, particularly since many custumors would be upset that their new Verizon iPhone will be “out of date” only months after they purchased it.
“You’d be worried there’d be a backlash from consumers. What they don’t want is for Verizon to be put in a position where its forced to offer free trade-ins,” Chaplin says. “There’s some risk of that.”