Verizon expands mandatory data plans with Rogue

09.09.2009
Verizon Wireless on Tuesday introduced the Samsung Rogue, a phone that may be the first of many similar products: Reasonably priced, not quite a smartphone, but equipped for browsing and sold only with a monthly data plan.

The Rogue is equipped with a slide-out QWERTY keyboard, a "premium" Internet browser and fast EV-DO Rev. A (Evolution-Data Only) data connectivity. It doesn't have a smartphone operating system, such as Windows Mobile or Android, but Verizon expects subscribers to use it as a data device, not just a phone with some handy features. It's available now for US$99.99, after a $100 mail-in rebate, with a two-year service contract. The Rogue is the first of a new class of devices, which Verizon calls Enhanced Multimedia Phones, which will have these characteristics.

It's a safe bet consumers will browse on the Rogue, because they'll have to pay at least $9.99 per month to do so. Though aimed at a different demographic from iPhones and BlackBerrys, the Rogue will be sold like those high-end devices have been, with a mandatory monthly data plan. Previously, Verizon has let users of non-smartphones make no monthly data commitment and pay $1.99 per megabyte as they go. No existing phones will be re-classified as Enhanced Multimedia Phones, Verizon said.

Verizon's arrangement is probably a sign of things to come, according to some mobile analysts, as carriers look to maximize revenue and profits. They see the operators riding a surge of consumer interest in mobile data connectivity for browsing, social networking and downloadable applications.

"The demand for Internet browsing and applications is growing by leaps and bounds," said Yankee Group analyst Andy Castonguay. In the second quarter, data revenue made up 29.3 percent of total Verizon Wireless service revenue, up from 24 percent a year earlier. Data was 28.7 percent of rival AT&T's service revenue. However, voice plans will continue to make up a majority of mobile-operator revenue for the forseeable future, Castonguay said.

But if consumers embrace Verizon's vision, the days could be numbered for conventional mobile phones and plans. Though most handsets now have 3G capability, and features such as keyboards have been trickling down into less expensive devices, those essentially have been added features on handsets sold primarily for voice calls and text messaging. Now carriers are betting data is a key part of the mobile experience that more consumers are willing to pay for.