Verizon to Offer Shared Data Plans in 2012

Shared data plans are coming to Verizon(VZ) customers in 2012.

Verizon CEO Lowell McAdam confirmed the move at a UBS Media Conference in New York City on Wednesday, saying, "We have been working on this for a couple of years. Getting to one bill and getting to account-level pricing is our goal."

Data is more taxing on wireless networks than talking on the phone, which has led to the telecom companies cutting prices for minutes, while increasing prices for data. AT&T(T) and Verizon no longer offer unlimited data plans for new users, while Sprint Nextel(S) still does. Verizon grandfathered in unlimited data plans for existing customers.

The introduction of shared plans could potentially allow for shared data across a variety of devices, including smartphones, tablets, USB data sticks and personal hotspots.

This is similar to what the company did with cell phone minutes, as consumers on "family-plans" share cell phone minutes between the numbers on the plan. Data plans are still done on an individual basis, but as consumers use more and more data on a number of different devices, McAdam said that it was only natural for the telecom giant to move that way.

Both AT&T and Sprint Nextel have both previously hinted about potentially going to shared data plans.

In an e-mail, Morningstar analyst Michael Hodel said he didn't think that Verizon would do anything to hurt its profitability, and noted that Verizon Wireless, which is a joint venture of Verizon and Vodafone(VOD), will put together the pricing for the data plans.

"In my view, the carriers understand customer usage patterns very well and will only make decision around packaging that both make the custom! er exper ience better and maintain profitability," Hodel said.

Currently, Verizon Wireless offers data plans for smart phones based on a tiered pricing model, with a $10 overage charge for every additional gigabyte of data used. The plans start at 2 gigabyte for $30 and run all the way up to 12 gigabytes worth of data at $100 per month. Tablet and notebook plans have separate data plans, ranging from 2 gigabytes at $30 per month to 10 gigabytes at $80 per month.

Verizon reported a wireless operating income margin of 29% and an EDITDA margin of 47.8% during the third quarter. Data also increasingly became an important revenue driver, growing 20.5% year-over-year to $6.1 billion in the quarter.

Verizon shares were off 13 cents to $38.19 in afternoon action. Excluding dividends, the stock has returned 6.5% since 2011 started.

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