Verizon is cutting its prices, and by cutting them is actually raising them. What? Yeah, let’s let Ars Technica explain it.

From Ars Technica:

First, the details: Verizon has introduced a new data tier at $9.99 per month with a 25MB cap—this is the cheapest data plan now offered by the company and by most US wireless carriers, and applies to all 3G devices. Why does this equate to “upping” the data charges? Because the company is ditching its $19.99 per month plan with a 75MB cap altogether—you must either go with the $9.99 plan for a third of the data or or the $29.99 smartphone plan that applies to WinMo, Android, or BlackBerry devices.

By lowering the entry cost for a data package, Verizon is making a grab at average customers who have been put off by high data prices in the past. These customers can then get hooked on data for the same price as a trip to McDonald’s and then, like that trip to McDonald’s, be lured into super sizing once the 4G/LTE network is up and running.

In this way low-end customers will be paying more and Verizon makes a bunch of money.

They’ve also got some new unlimited plans for datahogs — aimed at stealing people away from pricey AT&T — an $69.99 unlimited nationwide talk plan, and an $89.99 unlimited talk and text plan.

These changes go into effect Jan 18.

Verizon lowering barrier to 3G data entry with higher prices [Ars Technica]

Want more consumer news? Visit our parent organization, Consumer Reports, for the latest on scams, recalls, and other consumer issues.