Verizon Wireless imagines that its coming LTE mobile broadband network will run all kinds of devices such as tablet computers, home appliances, automobiles, smart phones and televisions that you may not necessarily get from a Verizon store. And because so many devices in one household could be connected to its network, the nation's largest wireless service operator thinks the days of flat-rate plans may be over, according to Verizon chief technology officer Dick Lynch in an interview Thursday at the Consumer Electronics Show. Instead, the company will probably charge a base rate for its users and allow multiple authenticated devices to be attached to its network. Then it will charge by how much bandwidth is used by a provider - a business model known as usage-based pricing.
So the question now, writes GigaOm's Stacey Higginbotham, is whether the pricing model will resemble that of cable services, with a high base rate and then smaller charges for premium channels, or that of a utility bill, which see users pay a tiny charge each month and then a set rate for each kilowatt consumed. Or will it be closer to that of existing cellular pricing plans, complete with high base rates and punitive overage fees? And how will the subscriber be billed for myriad connected devices?
