TIA 2011: Verizon Wireless to begin tiered pricing this summer

DALLAS – Verizon Wireless ‘ LTE customers are using more data than its 3G customers, but probably wo’t run into data constraints, even if Verizon implements data usage caps of 3 GB, Verizon Communications Inc. CTO Tony Melone told reporters at the Telecommunications Industry Association’s annual convention, TIA2011: Inside the Network held here.
In a wide-ranging interview, Melone said competition with AT&T Mobility will continue regardless of whether AT&T completes its proposed acquisition of T-Mobile USA Inc.
The company plans to implement a usage-based pricing system on its LTE network sometime this summer, although Melone declined to provide specifics. Customers, as well as application developers, need to value the cost of the transport. However, Melone said the tension between operators and over-the-top service providers has probably been overhyped. OTT providers recognize the value of the operator and operators recognize the value they are giving their customers by connecting them to the content they want.
Going forward, the operator will be conservative as it implements voice over its LTE network. Melone also said Verizon likely will use Wi-Fi technology to offload traffic in high-traffic areas like sports arenas because Wi-Fi is the best way to address capacity issues in high-density venues where a lot of people uploading video and photographs during games. However, offloading data to the Wi-Fi network is not going to be a way to address flaws in the macrocellular network, he said, noting it was more effective to invest in the 3G and 4G networks.