Verizon Is First With 5G Cellphone Pricing - At $10 Per Month Extra

The big question is whether consumers are willing to pay extra for ostensibly faster service. JL

Sarah Krouse reports in the Wall Street Journal:

The largest U.S. wireless carrier by subscribers will begin offering 5G phone service in  Chicago and Minneapolis on April 11. Verizon Communications Inc. will charge an additional $10 a month per smartphone for subscribers who want 5G, the first major U.S. carrier to disclose pricing for the faster cellular service. The new networks will be a test of whether customers are prepared to pay higher monthly wireless bills for faster service. The cost of U.S. wireless service has fallen in recent years as subscriber growth slowed, carriers brought back unlimited-data plans and undercut each other  to win customers.
Verizon Communications Inc. will charge an additional $10 a month per smartphone for subscribers who want to add 5G speeds to their devices, the first major U.S. carrier to disclose pricing for the faster cellular service.

Only customers of Verizon’s unlimited-data plans will be able to access the 5G service and they must have a compatible device. There are also limits to the initial footprint of Verizon’s network, even in the first cities where it will be offered.
The largest U.S. wireless carrier by subscribers will begin offering 5G phone service in some parts of Chicago and Minneapolis on April 11, a Verizon spokesman said. The 5G service will be free for customers in those cities for the first 90 days.
Verizon will initially sell one device that works with the faster service, the Motorola Moto Z3 with a clip-on modem that makes it compatible. Samsung Electronics Co. has announced plans for a 5G-compatible device later this year.

Verizon, AT&T Inc. and other carriers are in a race to roll out the next generation of wireless networks, but have been largely mum on what it will cost smartphone customers. They have battled over the branding of network upgrades that pave the way for 5G service and sparred over what milestones classify as “firsts.”
All four major U.S. carriers have announced plans to have 5G services in some cities this year. The new networks will be a test of whether customers are prepared to pay higher monthly wireless bills for faster data services. The cost of U.S. wireless service has fallen in recent years as subscriber growth slowed, carriers brought back unlimited-data plans and undercut each other on monthly plans to win customers.
Verizon’s service will be centered in downtown areas of its launch cities, particularly around landmarks such as the Art Institute of Chicago and U.S. Bank Stadium in Minneapolis. Verizon executives said in February they planned to offer 5G mobile service in more than 30 markets in 2019.
The early rollout of 5G in those markets and the way consumers use it would “give us the next window into the value that 5G brings,” said Tami Erwin, head of Verizon’s new business-focused unit.
Late last year, Verizon began offering in-home 5G broadband service in four markets, including Los Angeles and Houston, for $70 a month. That service wasn’t based on the international 5G standard set by a global industry trade group, which means that equipment will need to be updated.
AT&T created a 5G mobile hot spot that it has offered to some businesses and consumers free. It plans to sell the equipment this spring for $499 and service will be available in parts of some cities for $70 a month for 15GB of data.
T-Mobile US Inc. said last month fresh revenue from 5G was likely to come from new services, additional connected devices and business uses, rather than from people upgrading their smartphone plans.
“We don’t have plans for the smartphone plans that you see today to charge differently for 5G enablement versus 4G LTE,” Mike Sievert, the carrier’s chief operating officer said at the time.
Sprint Corp.’s chief executive, Michel Combes, declined to comment on the carrier’s 5G pricing plans at the telecom industry’s premier trade show in Barcelona last month. Sprint and T-Mobile are awaiting regulatory review of their proposed merger, which would reduce the number of U.S. carriers to three.