Verizon stops Tablet subsidies

Gone are the days when Verizon treated tablets and phones alike and tablets were offered at low prices along with wireless service contracts. The changes took place with the introduction of Verizon's new "Share Everything" initiative.

With the introduction of the new initiative, Verizon seems to revamp all of its existing phone plans.

Under the new plans subscribers can share the monthly data allowance over as many as 10 devices. Adding a device to the service will require payment of a flat fee depending on the type of device. The plans offer unlimited calling and texting for phones, while data usage will be charged extra.

According to TabletPC Review, Verizon now requires customers to pay the full price for tablets under one of the new plans. For example, the lowest cost of the iPad that can connect to the carrier's 4G LTE network will be $630, and this price is the same for the Droid Xyboard 10.1 too.

A Share Everything plan will cover up-to 10 devices. There is a flat fee for each device added depending on its type: $40 per smartphone, $10 per tablet, $30 per basic phone and $20 per mobile hotspot.

Apart from the fees, data usage will be charged extra: $50 for 1GB, $60 for 2GB, $70 for 4GB, $80 for 6GB, $90 for 8GB and $100 for 10GB of monthly usage.

Going overboard will cost $15 for every GB with an option to buy additional 2GB of usage for $10, just for that month. Users will be alerted when approaching the limit, but the additional data will have to be bought before the overage begins.

Current Verizon customers will be able to switch to the new plan or keep their old ones. But those with unlimited data plans for their smartphones already won't be able to move those to new phones, unless they pay the full unsubsidized price for those phones.

Verizon will not charge extra for letting devices act as “mobile Wi-Fi hotspots" under the new plans. That means subscribers who have a recent smartphone could use it to connect a tablet to the Internet, without paying the extra $10 per month for a tablet.

The new initiative is an effort by Verizon to lure in other non-phone devices to their network and reports suggest that AT&T is likely to follow suite soon.

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