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Can someone please clearly explain verizon edge too me?

I'd like some clarifications on the Edge program. Some things have changed as VZW has tweaked things a little while ago with their edge program.

I'm considering a new phone for myself (not my wife), my plan currently has 2 phones and an iPad. I'm paying around 168 a month with taxes or 4032 for the life of the two year contract. Add in the cost of my iPhone and that brings it up to 4332

If I opt for a new phone, I'll be paying 178 a month (30 dollars for the phone less a 20 dollar discount). That turns out to be 4272 over the course of two years. That's a cost decrease of 60 bucks (sales tax on both phones make this a wash imo)

So it seems by my math which could be twisted, I'll be paying almost the same amount for the EDGE program - does that sound right? Where's the catch?

One unknown is how long does that 20 dollar a month discount last, 6 months, 1 year 2 years? The other downside is that I'm have to trade in my old phone.
 
maflynn said:
I'd like some clarifications on the Edge program. Some things have changed as VZW has tweaked things a little while ago with their edge program.

I'm considering a new phone for myself (not my wife), my plan currently has 2 phones and an iPad. I'm paying around 168 a month with taxes or 4032 for the life of the two year contract. Add in the cost of my iPhone and that brings it up to 4332

If I opt for a new phone, I'll be paying 178 a month (30 dollars for the phone less a 20 dollar discount). That turns out to be 4272 over the course of two years. That's a cost decrease of 60 bucks (sales tax on both phones make this a wash imo)

So it seems by my math which could be twisted, I'll be paying almost the same amount for the EDGE program - does that sound right? Where's the catch?

One unknown is how long does that 20 dollar a month discount last, 6 months, 1 year 2 years? The other downside is that I'm have to trade in my old phone.
Click to expand...

That seems right to me. I believe the discount is applied for as long as you keep EDGE
 
mattopotamus said:
That seems right to me. I believe the discount is applied for as long as you keep EDGE
Click to expand...

So basically the only negative is that I have to turn in my iPhone, if I wish to upgrade to a newer model. The pricing is now close enough to allow me to switch and no see my bill go up too much. I realize another downside is that if I wish to switch phones in 6 months, I'll have to have my current phone 50% paid off, which won't occur in 6 months, so I'll have to cough up something around 300 if I want to upgrade.

The only thing that sticks in my craw is the idea of giving VZW my old phone, but then I guess I never hung on to them in the first place (sold on CR or Gazelle).
 
maflynn said:
So basically the only negative is that I have to turn in my iPhone, if I wish to upgrade to a newer model. The pricing is now close enough to allow me to switch and no see my bill go up too much. I realize another downside is that if I wish to switch phones in 6 months, I'll have to have my current phone 50% paid off, which won't occur in 6 months, so I'll have to cough up something around 300 if I want to upgrade.

The only thing that sticks in my craw is the idea of giving VZW my old phone, but then I guess I never hung on to them in the first place (sold on CR or Gazelle).
Click to expand...

Sounds to me like you have a 100% understanding on the plan :).
 
maflynn said:
I realize another downside is that if I wish to switch phones in 6 months, I'll have to have my current phone 50% paid off, which won't occur in 6 months, so I'll have to cough up something around 300 if I want to upgrade.
Click to expand...
What you say above is true, but how would it work on your current plan if you wanted to switch phones in 6 months. You'd be coughing up the full MSRP ($600+ for most smartphones) instead of ~$300, no?
 
aristobrat said:
What you say above is true, but how would it work on your current plan if you wanted to switch phones in 6 months. You'd be coughing up the full MSRP ($600+ for most smartphones) instead of ~$300, no?
Click to expand...

If I wanted to switch phones right now and not join Edge? I'd probably sell my iPhone 5 (hopefully in the 300+ dollar range being a 32GB model) and then pay 300 for a unsubsidized phone.
 
aristobrat said:
IMO, the whole purpose of the Next/Edge/Jump programs is to provide a more cost-effective to allow people to upgrade their phones yearly. Not every two years.
Click to expand...
The point of the Next/Jump programs is so AT&T and T-Mobile can avoid paying hefty subsidies for phones. Mind, on the original Next and Edge programs, customers are essentially paying for their phones twice since there used to be no service discount.

As for whether Edge is better than the subsidized model, it depends. If you're on a Share Everything with 10GB data or more, then yes, you actually save a little bit with Edge. Here are calculations based on the assumption you're keeping your phone for 2 years.

iPhone 32GB

2-Year Contract
$480 ($20 x 24 months)
$299 upfront cost
--------------------
$779 total device cost


Share Everything >= 10GB
$755.28 ($31.47 x 24 months)
--------------------
$755.28 total device cost


Share Everything < 10GB
$240 ($10 x 24 months)
$755.28 ($31.47 x 24 months)
--------------------
$995.28 total device cost


@maflynn
If you want to upgrade in 6 months, you'd only have to pay $162 ($27 x 6) out of pocket and trade-in your phone. That said, assuming the device is well kept, you're likely better off selling the device yourself at the 6-month mark since it probably wouldn't have depreciated by $324 by that time. More likely than not, you'll be able to make enough from the sale to cover the payoff amount ($486) at the very least. Mind, we're at the 6-month mark for the 5s right now and I'm seeing it go for around $550 on average at Swappa for the 16GB model.
 
Verizon wants constant revenue. That's why they made the "new" share everything EDGE plans with zero savings for those who want to bring their own phones or pay off their phones. You will pay the same month after month.

Can't blame them.

They are confident in their churn rate. Let's see the next quarterly report. As a shareholder of Verizon and att. I am very concerned with Verizon's relative "no action" to the rapidly changing cellular market. Sure it's great to maintain great profitability. But it's more important to maintain the customer base. It's a very different balancing act.
 
maflynn said:
If I wanted to switch phones right now and not join Edge? I'd probably sell my iPhone 5 (hopefully in the 300+ dollar range being a 32GB model) and then pay 300 for a unsubsidized phone.
Click to expand...
What unsubsidized phone would you buy for $300? Seems like all of the popular ones are $600+.
 
aristobrat said:
What unsubsidized phone would you buy for $300? Seems like all of the popular ones are $600+.
Click to expand...
For new phones, Nexus 5 starts at $349, and Moto X can be had for the same for some or generally for $399.
 
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