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Verizon to Force $30 Unlimited Data on New Smartphone Users

 & Sara Yin Junior software analyst

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Verizon Wireless will cease offering its monthly 150MB data plan, which costs $15, and by default will require all new smartphone users to adopt its existing $30 unlimited data plan.

During Verizon's fourth quarter earnings call on Tuesday morning, chief operating officer Lowell McAdam said the company was scrapping its $15/month 150 MB data plan this month.

A Verizon Wireless spokesman declined to offer any more details but confirmed Verizon would continue its $30 unlimited MB plan.

The announcement deals a direct blow to the original Apple iPhone carrier, AT&T, which had to scrap its unlimited data plan last summer. AT&T's metered data plans begin at $15 a month for 200MB. At the time, AT&T argued that 98 percent of its smartphone users consumed less than 2GB per month, and 65 percent consumed less than 200MB per month.

This demistifies somewhat the data plans available to incoming Apple iPhone users. The spokesman would not say whether or not Verizon would offer any other tiered data plans for new smartphone subscribers.

This morning before the call McAdam told the Wall Street Journal, "I'm not going to shoot myself in the foot. Not offering an unlimited plan would put up a barrier for customers who might otherwise switch from AT&T," he said. "The country's No. 2 carrier still has millions of subscribers grandfathered into unlimited plans they signed up for before AT&T switched to tiered pricing last summer."

About Our Expert

Sara Yin

Sara Yin

Junior software analyst

Sara Yin is a junior analyst in the Software, Internet, and Networking group at PCmag.com, pouring most of her energy into app testing and security matters at Security Watch with Neil Rubenking. She lies awake at night pondering the state of mobile security (half-true). Prior to joining PCMag.com, Sara spent five years reporting for publications in New York City (Huffington Post), Hong Kong (South China Morning Post), and Singapore (Campaign Asia, Men's Health). Follow her on Twitter at @SecurityWatch and @sarapyin, or contact her the old school way: email. That's sara_yin AT pcmag.com.

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