Verizon ending unlimited data for phone upgrade

New York, NY, United States (4E) – Verizon Wireless announced it would begin phasing out unlimited data plans for customers as they upgrade their plans.

Smartphone customers with unlimited data plans will be shifted to tiered plans when they upgrade to a new phone beginning this summer.

Verizon stopped selling new customers unlimited data plans last year.

The company said it will also implement a new “data share” pricing model that will allow customers to buy an allotment of data that they can use for multiple wireless devices linked to the same account. That plan will be rolled out about mid-summer.

Observers say the change is driven by the need to increase revenue. Because most people already have cell phones, it is increasingly difficult to increase revenue by bringing in new customers. That means increasing revenue becomes a matter of squeezing more money out of existing customers.

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