Verizon To End Unlimited Data For iPhone

When Verizon began selling the iPhone last month, there was a very good reason to wait and a very good reason not to.

If you wait until this summer, chances are good that Apple will update the iPhone with a model that will operate on Verizon's much faster 4G LTE network, now being rolled out in major cities. The current model only operates at 3G speeds.

However, acting now to purchase the older, slower phone has one thing going for it. Verizon is providing the early adopters with unlimited data plans. At the time, Verizon said the offer might not last.

Not a long-term solution

This week, a top Verizon executive told an investors conference that unlimited data plans for the iPhone "are not a long-term solution." Chief Financial Officer Fran Shammo said Verizon could switch to a tiered pricing system as early as this summer.

Currently, the Verizon iPhone contract offers a data plan for $30. It provides unlimited data use on the network, just as Verizon now offers on phones from other manufacturers. AT&T, which started with unlimited data for iPhone customers, switched to a tiered system in 2010.

Verizon has already said it may limit download speeds for its most data-hungry customers, targeting the top five percent in data consumption. Having succeeded in breaking AT&T's exclusivity with the iPhone, Verizon is trying to avoid the kinds of problems its competitor has experienced in the past.

The plans

AT&T currently offers a 200 megabytes per month iPhone data plan for $15 or two gigabytes for $25. Verizon has not discussed pricing, but currently offers data plans for smart phones at $10 for 75 magabytes and $29.99 for unlimited monthly use.

Shammo also revealed no details of how many iPhones Verizon has sold since it went on sale last month. Some media reports speculated sales were less than expected, based on traffic at Verizon retail stores. However, Shammo said about 60 percent of Verizon iPhones have been sold online.