Verizon is monetizing mobile data plans better than its rivals, according to a new report from Consumer Intelligence Research Partners (CIRP).
That’s because unlike some rivals Sprint, AT&T, and T-Mobile, Verizon offers fewer choices and has more customers using shared data plans. It also has the lowest percentage of customers on unlimited data plans (22%). Verizon stopped offering unlimited data plans in 2012, so those customers have been “grandfathered” into their unlimited data plans. With fewer people on unlimited data plans, Verizon is able to charge its customers for the data they use instead of a flat fee for unlimited data.
T-Mobile and Sprint have higher percentages of customers on unlimited data plans (78% for both) because they’re the only two major carriers that still offer unlimited data. T-Mobile and Sprint are much smaller than Verizon and AT&T, so they use unlimited data plans as a way to entice customers away from the bigger, more expensive carriers.
Verizon customers also tend to pay more per month than customers on rival carriers. CIRP reports that 51% of Verizon customers pay at least $100 per month. An average of 41% of customers on the other three carriers have bills over $100.