As you may have heard, Verizon is shuttering its unlimited data plan for smartphones (including the iPhone) and moving to tiered plans.  Please note that existing unlimited data users will not be effect by this change.  The tiered plans only apply to new customers.

Over the past few years I have talked to many people about unlimited plans verse tiered plans.  I recommend that people check their actual usage to help them determine what plan is best for them.  I have found that many people WANT the security of an unlimited plan but the reality is many of us do not NEED unlimited data.  I have yet to encounter anyone who uses more than 2GB of data on a regular basis.

So, before you get caught up in a frenzy and sign up for a Verizon unlimited data plan today check how much data you currently consume.  If you have an AT&T account simply go to att.com and login to your account. Then click on the link for Analyze Past Usage. This will give you a great bar chart showing your past usage.  The chart can go as far back as February of 2010.

Since the debate of unlimited vs tiered plans is back in the news today I decided to check my actual usage.  I consider myself to be an average 3G data user.  My main activities are web browsing and email with occasional Pandora streaming and YouTube videos.  Here is my data usage for the last year:

Based on the chart above I am well within the 2GB plan from AT&T or Verizon.  The usage spike in June is because I was traveling for 10 days and used my phone more than usual but still only 1/4 of my limit.

I check my wife’s usage as well.  My wife is a very light data user only using it for email, web browsing and credit card transactions using Square.  See her usage:

Since we are on AT&T she is able to use the 200MB per month plan that is only $15/month.  Unlimited is not even on her radar.  Verizon’s cheapest plan is $30/month so AT&T is actually cheaper four us.  Since we have good coverage from both AT&T and Verizon I can use whichever on has better plans.  As always you should check the coverage of both AT&T and Verizon before signing a two-year contract.

Moral of the story

If you are a heavy user of apps like Netflix or Pandora I would consider jumping on to the Verizon unlimited plan today.  For most other users the idea of unlimited data is actually better than actual need.  It is a fool’s gold.

If you don’t need unlimited data avoid the unlimited craze and keep using your current phone as you are today and enjoy life!

- Spencer