Report: Verizon May Follow AT&T Data Cap Lead

Verizon is reportedly considering tiered pricing as it converts its network to speedier 4G technology, which will enable customers to surf the Web even faster and have access to data-heavy applications such as video downloads.

According to Businessweek, Verizon CFO John Killian said Friday that the carrier's 4G network will provide data at 10 times faster than the previous networks, but didn’t disclose additional details about when it will be available.

AT&T decided to start capping users’ unlimited data plans after the explosion of the iPhone and the iPad led to network congestion and unhappy subscribers. AT&T's view is that iPhone and other smartphone users consume more bandwidth than other users, and Verizon estimates that its Droid and Incredible smartphones eat up between 600 and 800 megabytes of data monthly, according to Businessweek.

Customers who already had unlimited data plans prior to the AT&T switch can keep their plans because of their existing service contracts. However, new smartphone customers will have to opt for AT&T's DataPlus plan, which includes 200 MB for $15 per month; or the DataPro, which includes 2 GB for $25 per month.

Overages are charged at a rate of 1 GB for $10 -- which, for heavy data users, can quickly rack up a substantial monthly bill.

Verizon’s potential plan to follow in AT&T’s footsteps would be another reflection of carriers' declining voice revenue and their desire to make up for it with higher data charges. Some analysts believe that carriers could turn to overage fees to make up the difference.