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Verizon sees higher data usage with its MORE Everything plan

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Average data usage on MORE Everything plan up 50%

In Part 6 of this series, we learned that users tend to consume almost double the data on 4G networks than on 3G networks. We also discovered that users tend to use more data on Verizon Communications Inc. (VZ) and Sprint Corporation (S) LTE networks than they do on AT&T, Inc.’s (T) and T-Mobile US, Inc.’s (TMUS) networks, for different reasons. In this part, we’ll look at Verizon’s MORE Everything plan.

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Verizon’s MORE Everything plan gives you unlimited calling, unlimited local and international messaging, shareable data for up to ten devices per account, mobile hot spots, and 25 GB of Verizon cloud storage. On top of that, you get a $15 discount if you’re an existing Edge customer and your data allowance per month is up to eight GB. The discount increases to $25 if you’re an existing Edge customer and your data allowance is above ten GB.

Verizon More Everything Penetration_Q32014

During the 3Q14 earnings call, Verizon management confirmed that the average data usage on MORE Everything accounts increased by 50% on a year-over-year basis. Plus, 57% of its total accounts are on MORE Everything shared data plans. That’s up from a 42% penetration rate last year, as the chart above shows.

Increasing penetration of 4G devices and pricing changes led to data usage increase

Management also observed that this data usage increase is driven by a greater number of devices on its 4G network. We looked at this earlier in the series. 4G devices tend to use more data than 3G devices because of the high download speeds associated with 4G network. People tend to use more video data on the 4G network, watching YouTube or Netflix, Inc. (NFLX) videos, for example.

Another reason for the higher usage on the MORE Everything plan is the pricing change Verizon made last quarter. It raised the discount from $10 to $15 for existing Edge customers with monthly data allowances of up to eight GB.

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