Verizon Cutting Unlimited Data Plans; Increases Data Fees

Verizon has announced it eliminating its unlimited data plans, and that when customers upgrade to their next smartphone, they will have to buy a tiered group sharing data plan. This move covers both its 3G network as well as its newer 4G network nationwide.

The only way to avoid this is to buy your handset outright, which means instead of getting a smartphone at the normal discount of around $200, customers will have to pay $600 or more just to keep their unlimited data plans.

The move comes as the company is trying to cut costs and boost revenue as it sees its profit margins drop. Verizon Wireless is joint venture between Verizon Communications, based in New York, and British telecom giant Vodafone Group Plc.

Under today's pricing Verizon Wireless customers without unlimited plans pay $30 a month for 2 gigabytes of data, $50 for 5 gigabytes and $80 for 10 gigabytes. If they use more than their allowance they are charged at higher rate.

These rates will continue to make Verizon the nations most expensive wireless carrier.

Rival AT&T, the nations second largest carrier, has said it plans to roll out a shared group data plan as well.

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