Saturday, October 8, 2016

Verizon Launches Drone Service Plans

Pricing for Internet of Things communications using mobile networks might eventually take a number of forms, but for the moment AT&T and Verizon seem to be packaging based on data consumption.

Verizon Communications says it will begin working with drone makers to supply communications using the Verizon mobile network, and has announced pricing of $25 a month for one gigabyte of data and $80 for 10 gigabytes.

Those prices assume not only real-time communications, but drones that could be transmitting some amount of video, pictures or other sensory data.

AT&T likewise already offers service plans based on consumption, for sensor networks that will not require transmission of too much data, much of it narrowband, including text messages. By way of comparison, the AT&T IoT tariffs include a 1-Gbps plan costing $25 but allowing usage over a year’s time.

Verizon’s pricing might also anticipate that, at some point, the mobile network could allow over-the-horizon operation of some drones.

Over time, as specific use cases develop, other pricing and packaging models could develop, perhaps including the “speed plus consumption” approach taken by fixed networks, latency-defined services, prepaid, postpaid or on-demand rating.

An obvious approach would simply bundle access and communications with the cost of an application or service, much the same as the way TV, radio or linear video services simply include the cost of access services within the retail price of the product.

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