Verizon Sees Wireless Moving to Tiered Pricing With 4G Network

Verizon Wireless, the largest U.S. mobile-phone carrier, may follow AT&T in introducing tiered pricing and eliminating unlimited data plans this year as it moves to its faster fourth-generation network technology.

"We will probably need to change the design of our pricing where it will not be totally unlimited, flat rate," John Killian, chief financial officer of Verizon Communications Inc., the wireless unit's parent, said. The company anticipates "explosions in data traffic" over wireless networks as new phones on 4G networks incorporate data- heavy applications, such as video downloads, he said. Verizon is working to keep its network running smoothly as more of its customers switch to smartphones that connect to the Internet. The company is finalizing new data plans for the 4G network, which is expected to provide 10 times faster data rates than older networks, and isn't ready to announce specifics, said Killian, 55. AT&T, the exclusive U.S. carrier for Apple Inc.'s iPhone, said this month it will introduce plans based on the amount of data customers use and stop offering unlimited plans to manage the soaring data traffic.