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Old Jul 18, 2013, 11:46 AM   #1
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Verizon Officially Announces 'Edge' Frequent Device Upgrade Program




In line with a leaked document from earlier this week, Verizon today announced the upcoming launch of its new "Edge" handset upgrade program. Similar to AT&T's "Next" program introduced earlier this week and T-Mobile's "Jump" offering, Edge is designed to allow users to upgrade their handsets more frequently.

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Here's how it works: Choose the phone you want and sign up for a month-to-month service plan, it's as easy as that. The full retail price of the phone will be divided over 24 months and you'll pay the first month at the time of purchase. If you want to upgrade after 6 months, just pay off 50% of the full retail price of the phone and you can choose a new phone and start all over again.

There are no long-term service contracts, finance charges or upgrade fees with Verizon Edge. Every six months, as long as 50 percent of the cost of the phone has been paid, you can upgrade to the newest basic or smartphone available.
According to AllThingsD, customers must also trade-in their existing handsets in order to upgrade under the program. Verizon's Edge program launches August 25 for customers on the carrier's Share Everything plans.

Article Link: Verizon Officially Announces 'Edge' Frequent Device Upgrade Program
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Old Jul 18, 2013, 11:47 AM   #2
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Old Jul 18, 2013, 12:03 PM   #3
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Tmob jump is better.
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Old Jul 18, 2013, 12:04 PM   #4
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What am I missing? You pay the phone's price over 2 years (so let's take an iPhone worth $700), and you're paying $350/year, but in order to upgrade in 6 months time, you have to fork up the total $350 price tag AND trade in your phone...so essentially, you're renting a phone, but if you keep it for 2 years, you've paid it in full and you STILL have to trade it in??
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Old Jul 18, 2013, 12:14 PM   #5
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Old Jul 18, 2013, 12:15 PM   #6
Millah
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Honestly, one of the biggest scams I've seen ATT and Verizon try to pull. Their service plans are already artificially inflated to account for device subsidies. So add MORE on top of that, and it would already be a complete scam. But the real scam is that you are essentially renting the phone, since you'd have to give it back when you want to upgrade on top of having to pay half the phones price.

Wow, they've hidden their scam in something thats so convoluted and confusing that the average person just wont read between the lines. Absolutely digusting, one of their slimiest tactics I've seen yet from the two big "orifices" in telecoms.

Tmobiles is much more straightforward and honest. Realistically, you're just better off BUYING your phone and then RESELLING when you want to upgrade.

I hate the carriers
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Old Jul 18, 2013, 12:27 PM   #7
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Originally Posted by Millah View Post
Honestly, one of the biggest scams I've seen ATT and Verizon try to pull. Their service plans are already artificially inflated to account for device subsidies. So add MORE on top of that, and it would already be a complete scam. But the real scam is that you are essentially renting the phone, since you'd have to give it back when you want to upgrade on top of having to pay half the phones price.

Wow, they've hidden their scam in something thats so convoluted and confusing that the average person just wont read between the lines. Absolutely digusting, one of their slimiest tactics I've seen yet from the two big "orifices" in telecoms.

Tmobiles is much more straightforward and honest. Realistically, you're just better off BUYING your phone and then RESELLING when you want to upgrade.

I hate the carriers
Even if you buy the phone at full retail you still are being ripped off because your bill for each month stays the same. So you buy the phone at full retail, yet are still paying for it in the bill. With that said, I will probably be one of the many people who use this program even though I know im being ripped off. I can't afford to pay full retail for phones, and the carriers know this. I think the carrier is only benefiting if the customer waits more than 12 months to trade their phone in. That way in 12 months you basically paid for the full price of the phone. On the 13th month, you are now paying more than what the phone is worth.
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Old Jul 18, 2013, 12:28 PM   #8
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Maybe...

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Tmob jump is better.
Not exactly....it all depends. With TMobile and Sprint, the reason they typically give everything away for a better rate is because it works in soooo many fewer places (overall.) That's been one trade off between those two and VZ / ATT for many years now. Network coverage vs. bang for the buck.

Unless you live in a densely populated area, and even then its no guarantee, Sprint and TMob typically are bad. I have a Sprint Aircard for work, and I'm less than a mile outside of DC, and it barely works on 4G. But whatever, if it works where you need it to then no harm no foul.
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Old Jul 18, 2013, 12:33 PM   #9
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This article only explains part of the deal. This is definitely the worst of the three (AT&T, T-Mob, Verizon) in terms of Value, for the customer. You essentially lose 50% of what you've put in every time you want to upgrade. They don't even mention what happens if you want to upgrade every 12 months, or 24 months. You have to turn in your phone after you pay the full retail price for it??? T-mobile's is the best, but honestly AT&T's sounds alright too, at least you get to keep and resell your phone. I'm not planning to upgrade my phone every year or less, but for those who do, it's turning into a leasing business
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Old Jul 18, 2013, 12:38 PM   #10
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Makes about as much sense as leasing a vehicle and changing autos every couple of years.
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Old Jul 18, 2013, 01:02 PM   #11
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Amounts to rate increase

Yes, true, even if you buy the phone at full price and take it to AT&T or Verizon, you're still paying the same monthly rate for the service that has the subsidies built in. So basically these new plans from AT&T and Verizon amount to a rate increase of the amount of the phone payment. And the ETF threat/ending of the contract is now having to give the phone back instead of paying an ETF in cash/paying full price to upgrade.

They're just going to be RAKING in the money on these plans hand over fist. It's going to be very common now for people with 1 or 2 lines to have close to a $200 monthly bill. But also a lot of customers will be happy that they can always go out and get the newest phone that they see on TV for no/little down payment or upgrade hassles. So it's going to be interesting to see how well this does, and if people will tolerate their phone bill being even higher like that. This could set the stage for even higher priced phones to become more common, like $1000+ phones.
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Old Jul 18, 2013, 01:05 PM   #12
lhotka
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So let's see.

I pay the same amount for service, pay extra to upgrade early, and don't own my device when I do.

This is a good deal how?

The most profitable customer for a carrier is someone who's run out their contract, but hasn't upgraded to a new subsidized device yet (like many who are waiting for the 5s). Notice that the monthly fee doesn't drop in that case - carriers just pocket the extra income.

This program simply advances that timetable - it's just a stealth way of increasing monthly service charges while hiding behind a fig leaf of 'early upgrades'. Folks would be much better off financially just buying a phone outright.

But of course, the carriers won't give you a discount off your service...they just pocket the extra income that they aren't using to offset the subsidy.
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Old Jul 18, 2013, 01:18 PM   #13
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Originally Posted by T-Mac View Post
Makes about as much sense as leasing a vehicle and changing autos every couple of years.
Compared to this, leasing seems like a bargain. At least with the lease you aren't caught paying twice: once to rent the vehicle and once to actually drive it.

In all honesty, the absolute best case is having a significant other on an opposite-year upgrade from yourself. That way you can upgrade every year with subsidized pricing. As long as your SO doesn't mind having a year-old phone, you get new tech every year.
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Old Jul 18, 2013, 01:25 PM   #14
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Rent-a-Center comes to the phone business. Pay waaaay too much for something just because you want it now. Slime buckets.

I have a Share Everything plan with Verizon, and I'm thinking about leaving them with this announcement, even though it doesn't affect me. I hate the idea of supporting a company that would do something this slimy.

I wish Apple would just sell a completely unlocked phone that worked on all of the major US carriers, so that people like me could just pick and choose which carrier they want, and make them stumble over themselves trying to offer the best deal.
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Old Jul 18, 2013, 01:39 PM   #15
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Her expression seems to say...

WTF, you gotta be kidding me, no way am I signing up for this, hahaha!
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Old Jul 18, 2013, 01:43 PM   #16
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Originally Posted by Jimbo47 View Post
Even if you buy the phone at full retail you still are being ripped off because your bill for each month stays the same. So you buy the phone at full retail, yet are still paying for it in the bill.
Exactly, lol. But to me, this new program takes that ripoff to a whole new level.
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Old Jul 18, 2013, 01:44 PM   #17
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nice scam, this must have taken a significant amount of time to get the wording properly.
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Old Jul 18, 2013, 01:49 PM   #18
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How can they do this without lowering the cost of service?? For years we've been told that the high cost of service is covering the subsidized price of the phone. So if the phone is separate now shouldn't the service prices go down? Just another scam by these companies.
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Old Jul 18, 2013, 02:21 PM   #19
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Wait, I didn't see anything about turning in your phone with the Verizon plan...
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Old Jul 18, 2013, 02:34 PM   #20
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If this is how AT&T and VZ end subsidies ... forget it.

We really shouldn't be surprised how the Big 2 intends to end subsidies. Did anyone really think that they'd lower the monthly rate if the buyer pays full price? Of course not.

If this is the alternative, I'll just go with the standard plan and get my subsidized phone every two years. Thank you very much.

NOTE - The current subsidy model is very good for the Carriers, the phone OEMs and the shareholders. And to a lesser extent, the user. Folks get a brand new phone every 2 years. Carriers have a customer locked in for 2 years. OEMs get to sell customers a new phone every 2 years. What's not to like?

Not sure why anyone wants to rock the boat. If subsidies were to end, people would hold onto their phones for much longer than 2 years and the carriers would be more susceptible to churn as folks would have unlocked phones and could theoretically jump from carrier to carrier (note - FCC kinda screwed the citizens on this aspect with the various digital standards).
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Old Jul 18, 2013, 02:48 PM   #21
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So where exactly is anyone seeing that the rates are not changing? I, like others here, doubt they will but it has not been stated in the full details yet. They could drop the subsidized plans or offer a different, less expensive plan for this deal since there is no subsidy involved. Just no details yet so may want to not assume the worst............. (nah they will screw us) nevermind
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Old Jul 18, 2013, 03:01 PM   #22
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No thanks.
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Old Jul 18, 2013, 03:08 PM   #23
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Quote:
Originally Posted by freediverdude View Post
Yes, true, even if you buy the phone at full price and take it to AT&T or Verizon, you're still paying the same monthly rate for the service that has the subsidies built in. So basically these new plans from AT&T and Verizon amount to a rate increase of the amount of the phone payment. And the ETF threat/ending of the contract is now having to give the phone back instead of paying an ETF in cash/paying full price to upgrade.

They're just going to be RAKING in the money on these plans hand over fist. It's going to be very common now for people with 1 or 2 lines to have close to a $200 monthly bill. But also a lot of customers will be happy that they can always go out and get the newest phone that they see on TV for no/little down payment or upgrade hassles. So it's going to be interesting to see how well this does, and if people will tolerate their phone bill being even higher like that. This could set the stage for even higher priced phones to become more common, like $1000+ phones.
I hope not. Looks like this might be time to get off the subsidize phone plans and just buy the unlocked phones and sell with it is advantagous to maximize profit and have the most of the cost for a new phone.

This will reduce the overall cost of the phone to about 400 a year..

Since they (the carriers) want to start this phone leasing program, time to shop with the total cost in mind and not just monthly payment.
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Old Jul 18, 2013, 03:18 PM   #24
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What am I missing? You pay the phone's price over 2 years (so let's take an iPhone worth $700), and you're paying $350/year, but in order to upgrade in 6 months time, you have to fork up the total $350 price tag AND trade in your phone...so essentially, you're renting a phone, but if you keep it for 2 years, you've paid it in full and you STILL have to trade it in??
It not differenct than any other kind of lease. That's how they work. Take a car lease. You effectively pay it's retail value for months you use it for and at the end of the lease you return to dealer. You have zero equity in the car despite all your car payments. Most leases are for 2 or 3 and at the end of the lease term if you want to buy the car at current retail value to recapture some of your payments as equity you can. Usually it's not cost effective though.

Leasing is usually more expensive than buying but lease payments are less than loan payments. That's why most people lease. Also they like the fact they don't have to hassle with selling the car or getting a low ball trade-in.

Here you buy an iPhone for $700. Pay for use of a year. At the end of the year the wholesale value of the phone is about $350. If you keep it another year then it's not a good plan for you. That's why it's called the Frequent Device Upgrade Program.
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Old Jul 18, 2013, 03:30 PM   #25
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Thumbs up

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Originally Posted by rdlink View Post
rent-a-center comes to the phone business. Pay waaaay too much for something just because you want it now. Slime buckets.

I have a share everything plan with verizon, and i'm thinking about leaving them with this announcement, even though it doesn't affect me. I hate the idea of supporting a company that would do something this slimy.

I wish apple would just sell a completely unlocked phone that worked on all of the major us carriers, so that people like me could just pick and choose which carrier they want, and make them stumble over themselves trying to offer the best deal.
+1000
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