Verizon Should Price 3G Mobile Data Services More Attractively (VZ)

| About: Verizon Communications (VZ)

Tuesday's InfoWorld notes that many carriers are trying to spur 3G (3rd generation) adoption with unlimited plans - unlimited, that is, unless you are a bandwidth hog who is constantly streaming movies or hosting your web site over 3G. According to the article:

To get subscribers to buy the high-speed services and start using them, mobile operators are offering some “unlimited” data plans that allow as much streaming, uploading and downloading as the customer wants in the course of the month — within certain terms of service. Some uses, such as hosting a Web site, typically aren’t allowed.

At least one carrier, Verizon Wireless Inc., (NYSE:VZ) is looking the other way when users go wild. Verizon has allowed subscribers to use its BroadbandAccess service for capacity-intensive applications such as streaming TV to their notebooks from Slingbox video distribution devices, even though the terms of service forbid this, Executive Vice President and Chief Technical Officer Dick Lynch said at the CTIA Wireless show in April.

The most shocking thing about this is not that they are looking the other way -- it's that they are letting bandwidth be too plentiful in the first place. Instead of the limited unlimited bait and switch, Verizon, why don’t you try a more reasonably priced service? DSL speeds are not worth twice as much now just because they are mobile. Fill up those networks - the incremental cost per megabit is awfully low.

VZ 1-yr chart:

VZ 1-yr