What is a Tiered Data Plan?
Recently released statistics (as reported by CNN.com) indicate that more than a third of U.S. adults now own smartphones. The Nielsen Company reports that smartphones represent over 50% of all new cell phone purchases.
By definition, a smartphone is any mobile device that combines functions such as telephone, e-mail, Internet access, contact information, and calendar. The three major suppliers of smartphones are Apple’s I-Phone, RIM’s Blackberry, and Google’s Android.
Cell phone providers (Verizon, AT&T, Sprint, etc.) offer a variety of telephone plans based on your usage. While the telephone plans are the same for smartphones, there is an additional charge for “data,” meaning e-mail and Internet access. These charges add an additional $30 and up to your bill.
Several weeks ago, following the lead of its competitors, Verizon ended its “unlimited” data plan and introduced “tiered” pricing. The end of the unlimited era has confused many consumers who do not understand the new pricing structure which is based on the amount of data usage. Verizon now offers monthly plans of $30 for 2GB of data, $50 for 5GB of data and $80 for 10GB of data. Additional fees will apply if you exceed the limits of your plan.
In order to determine what plan is best for you, below is a list of functions that will impact your data usage.
1. Streaming video – Watching video on programs such as YouTube or full length movies on services like Netflix and Hulu on your smartphone or I-Pad.
2. Streaming Audio – While it is OK to play music from your I-Tunes library, using Internet Radio programs such as Pandora eats into your usage (although not as much as video).
3. Navigation systems – Using your smartphone on the road as opposed to an in-car navigation system.
4. Internet Use – Sites with significant amounts of data.
Accessing social media sites such as Facebook will not consume a lot of megabytes. However uploading photos will. Twitter is fine since it deals mainly with small amounts of text. No need to worry about e-mail, since it is basically plain text. However, if you receive attachments with high resolution pictures, your usage will increase.
An alternative to using your cell phone provider’s data service is using Wi-fi wherever it is available, whether that be at home, in your office or a “hotspot.” There are no data limitations with a wi-fi connection.
As for me, I am on the road quite a bit and use my smartphone all day. An analysis of my usage indicates that I am well under 2GB per month, which should be more than sufficient for the average mobile warrior. I suggest you check with your service provider who is able to provide you with an analysis of your usage prior to selecting a pricing package.
If you have any questions about your cell phone situation, want to discuss a possible upgrade, or any other technology issues, give me a call at 917 921-4518 or send an email to jblue@bluetutor.com.
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