Once a line is switched over to the new device purchase program, which requires users to pay the full price of the phone ($649-$949) over 24 months, it cannot be switched back to the subsidized plans.
For the sake of disclosure, if a customer switches over to the new cellular plans Verizon has recently begun offering the prices are similar to as it currently is with subsidies. Except rather than saving on the phone, customers save on cellular (which makes the carriers appear cheaper). Personally as an annual upgrader I save a significant amount of money on the subsidized plans vs the cost of paying full price every year even on the discounted plans. The new plans are definitely not favorable for those who regularly upgrade.
However, though this is speculation, I firmly believe once Verizon has switched over a substantial amount of customers to the new plans cellular costs will begin rising again. I am strongly opposed to the lack of subsidies for the reasoning I believe it will allow carriers the freedom to return to similar pre-discounted rates, but without the subsidized discounts -- especially as the purchase program will make it less apparent for the majority of customers that were unaware that carrier even subsidized their phone in the first place.
Effectively, in my opinion the new plans are little more than a ruse for carriers to retract the $450 subsidy they had been offering and thereby collecting additional revenue when they inevitably update their plans again. When that happens, the grandfathered subsidy lines will become as desireable as unlimited data lines. Even if that were not to happen, by retaining the subsidized line the customer is not losing anything but if they switch to a device purchase plan then they forever lose the ability to purchase a subsidized phone -- I believe it's much smarter to wait to see how plans continue to evolve over the next few years as carriers attempt to rid themselves of subsidies.
For the sake of disclosure, if a customer switches over to the new cellular plans Verizon has recently begun offering the prices are similar to as it currently is with subsidies. Except rather than saving on the phone, customers save on cellular (which makes the carriers appear cheaper). Personally as an annual upgrader I save a significant amount of money on the subsidized plans vs the cost of paying full price every year even on the discounted plans. The new plans are definitely not favorable for those who regularly upgrade.
However, though this is speculation, I firmly believe once Verizon has switched over a substantial amount of customers to the new plans cellular costs will begin rising again. I am strongly opposed to the lack of subsidies for the reasoning I believe it will allow carriers the freedom to return to similar pre-discounted rates, but without the subsidized discounts -- especially as the purchase program will make it less apparent for the majority of customers that were unaware that carrier even subsidized their phone in the first place.
Effectively, in my opinion the new plans are little more than a ruse for carriers to retract the $450 subsidy they had been offering and thereby collecting additional revenue when they inevitably update their plans again. When that happens, the grandfathered subsidy lines will become as desireable as unlimited data lines. Even if that were not to happen, by retaining the subsidized line the customer is not losing anything but if they switch to a device purchase plan then they forever lose the ability to purchase a subsidized phone -- I believe it's much smarter to wait to see how plans continue to evolve over the next few years as carriers attempt to rid themselves of subsidies.
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