Verizon Confirms That Yes, 5G Will Cost You Extra

Wireless

from the nothing's-shocking dept

By now we’ve established that while fifth-generation (5G) wireless will result in faster, more resilient networks, the technology has been over-hyped to an almost nauseating degree. Yes, faster, lower latency networks are a good thing, but 5G is not as paradigm-rattling as most wireless carriers and hardware vendors have led many in the press to believe. 5G is more of a useful evolution than a revolution, but it has become the equivalent of magic pixie dust in tech policy circles, wherein if you simply say “it will lead to faster deployment of 5G!” you’ll immediately add gravitas to your otherwise underwhelming K Street policy pitch.

Throughout all of the hype, carriers have been really hesitant to discuss what’s perhaps the most important question: how much will 5G cost? After all, next-generation connectivity is only going to help boost broadband competition if it’s both ubiquitous and affordable, two things the US wireless industry has never really been known for. And now that the carrier lobbyists have effectively convinced the Pai FCC to neuter itself, that question has only become more important.

It’s starting to become clear why carriers haven’t wanted to much talk about price. AT&T’s early offerings haven’t been much to write home about. And this week Verizon took the wraps off the pricing for its mobile 5G offerings, noting that consumers will need to pay $10 extra per month across the board if they’re interested in using it:

“Verizon has decided to treat its emerging mobile 5G network as a premium service that customers should pay more to access. The company is debuting its mobile 5G network next month at select locations in Chicago and Minneapolis, but customers wishing to use it will need a new phone and a new, costlier plan.

Verizon confirmed its new Mobile 5G service will require a new premium unlimited plan, starting at $85. That is $10 more than Verizon?s current GoUnlimited plan. Customers will also need a Motorola Moto Z3 phone ? currently the only model compatible with Verizon?s 5G network, and a special 5G Moto Mod attachment, sold separately.”

In other words, 5G will cost you extra. Which isn’t surprising if you’ve watched Verizon at all over the last decade or two.

Granted some will try and claim that Verizon should charge more due to the high costs of 5G deployment. That ignores the fact that US consumers already pay some of the highest prices for 4G LTE mobile data in the developed world. That also ignores that Verizon just nabbed incalculable countless billions from the Trump tax cuts and a litany of policy favors from the FCC, money the company has already acknowledged won’t be put back into the network. That money was, if you have a memory, supposed to go toward significant new jobs and network investment, according to Verizon.

Verizon’s charging more because it doesn’t believe it will be adequately punished by competitors for doing so. And it doesn’t worry about competition because while the wireless sector (including T-Mobile) talks a good game, they still usually refuse to seriously compete on price. And with the looming Sprint and T-Mobile merger preparing to reduce the total number of major competitors in the space from four to three, that’s not getting better anytime soon.

That brings us to the other major question users should be asking about 5G. In a post net neutrality landscape where the FCC no longer seriously has the authority to hold wireless carriers accountable, what kind of annoying restrictions will be placed on these lines? Verizon (who already charges some “unlimited” data customers more to stream video in HD) hasn’t affixed any on these early 5G markets yet, but should the FCC win its looming lawsuit over the net neutrality repeal, all bets are off.

Filed Under: 5g, costs, fees
Companies: verizon