Verizon Eliminates Two-Year Contracts for Smartphone Upgrades

[rick3000]

I investigated this very closely when I upgraded to my iPhone 7.
They really piled on the fees with the 2-year contract, $200 plus tax upfront for the phone, $40 activation per line, and $40 per line to connect to the plan. The installment plan had no upfront, no activation fee and was $20 per line to connect, but you are paying $20-35 for the phone every month. They actually offered me a monthly subsidy on the cost of the phone, so it made more sense to opt for the installment plan, because it was actually cheaper, than a 2-year contract and if you keep the phone for more than 2 years you drop the month phone payment and are paying $20 per line to connect versus $40 per line to connect to your plan.

It will be different for everybody, depending on how long you keep your phone and what plan you already have, but I was actually shocked when I learned Verizon was making things cheaper (barely). This move doesn't surprise me, because I don't think it will negatively affect the majority of people.

 

[ag29]

Back when Verizon had the

I get where you're coming from and nothing you're saying is wrong. But for the last 2 years at least I've remained on the More Everything plab, and paid something like $80 more versus a comparable Verizon XL plan, in order to receive these subsidies. I would've switched 2 years ago since they're so much cheaper, but after accounting for the $450 subsidies the new plans came out more expensive than More Everything plans when looking at the total dollars I was paying Verizon over those 2 years(not surprising, they switched to a model which made them more money).

By Verizon doing this out of the blue, all those increased $80 monthly payments over the last 2 years were for absolutely no reason. In my situation, which I agree is pretty specific, this ended up screwing me pretty bad. Yesterday I had 2 different lines for which I was eligible to upgrade to an iPhone for $200. Today it's $650.

If you had 10 GB or more of data on the more everything plan, your line access fees were $15 per line without a contract and $40 if you had a contract.

That plan had absolutely no benefit in doing 2 year contracts because of the high difference in monthly price.

 

[sbailey4]

No that's not correct, when you change to a monthly payment plan (or bring your own phone to the game) Verizon issues you a credit off of your monthly per-line data fee, where the amount of the credit varies by the size of your plan. In my case, each line on a payment plan is credited $25, dropping each line's data from $40 to $15/month.

They stopped that credit some time ago. So once you completed your contract on More plans you continued paying the $40. My contracts ran out in Sept and I wasn't eligible for that credit. Was told they stopped offering that some time ago.

 

[ag29]

They stopped that credit some time ago. So once you completed your contract on More plans you continued paying the $40. My contracts ran out in Sept and I wasn't eligible for that credit. Was told they stopped offering that some time ago.

Thats a bunch of BS you were told. Sounds like you talked to a rep that didn't know what they were talking about, but if it is true on Verizon's part then I hope you eiher switched to the new plan or got a new phone. Once you get a new phone it automatically lowers the monthly to non-contract price.

 

[Trey M]

Are you saying you were paying more for the last 2 years without getting subsided devices 2 years ago (and getting on 2-year contracts at that point)? Basically your last contracts ran out 2 years ago and you didn't renew but kept on paying the higher line access fees (that apply to lines with contracts and subsidized devices) waiting to upgrade at some point?

Thats a bunch of BS you were told. Sounds like you talked to a rep that didn't know what they were talking about, but if it is true on Verizon's part then I hope you eiher switched to the new plan or got a new phone. Once you get a new phone it automatically lowers the monthly to non-contract price.

Same thing for me, things remained $40 even after 2 year terms were up for my More Everyrhing Plan. I was aware when we got the contract that was the case.

 

[Cmd-Z]

They stopped that credit some time ago. So once you completed your contract on More plans you continued paying the $40. My contracts ran out in Sept and I wasn't eligible for that credit. Was told they stopped offering that some time ago.

I just checked, and my data per line is $20 (used to be $15 up until Nov when I changed plans, forgot that I did that). So now they charge a flat $20/line, instead of charging $40 and then giving you credit.

 

[C DM]

They stopped that credit some time ago. So once you completed your contract on More plans you continued paying the $40. My contracts ran out in Sept and I wasn't eligible for that credit. Was told they stopped offering that some time ago.

Thats a bunch of BS you were told. Sounds like you talked to a rep that didn't know what they were talking about, but if it is true on Verizon's part then I hope you eiher switched to the new plan or got a new phone. Once you get a new phone it automatically lowers the monthly to non-contract price.

Yeah, the month-to-month discount (which is similar to the device payment discount) for the Everything and More Everything plans was offered for a while, but was then discontinued as far as anyone who didn't already have it being able to get it. If you got it at some point you'd still have it on your line even after device payment plan or a contract finished, but if you never got it before then you couldn't get it now (or for a little while now). Kind of shady that they stopped doing that, but I guess because these are technically no longer current plans and aren't offered anymore, they just did away with that in favor of how the current Verizon plans work.

 

[Cmd-Z]

Same thing for me, things remained $40 even after 2 year terms were up for my More Everyrhing Plan. I was aware when we got the contract that was the case.

After your 2 year term, you owned your phone and should have gotten the "bring your own" monthly data credit once your contract expired. If you didn't, shame on Verizon for not automatically giving it to you, maybe you have to ask

 

[C DM]

Same thing for me, things remained $40 even after 2 year terms were up for my More Everyrhing Plan. I was aware when we got the contract that was the case.

Well, if you were no longer under a contract, and going with the month-to-month discount wasn't an option (it got dropped in the last year or so), then you basically were faced with a couple of options: upgrading to get a new subsidized device so that you wouldn't be paying more for nothing, or changing plans if you didn't want to upgrade so that you would be paying less for lines that are not on contract.
[doublepost=1483666224][/doublepost]

After your 2 year term, you owned your phone and should have gotten the "bring your own" monthly data credit once your contract expired. If you didn't, shame on Verizon for not automatically giving it to you, maybe you have to ask

Yeah, you had to ask, and that's while they were offering them (as they essentially stopped once they updated to the current Verizon plans).
[doublepost=1483666368][/doublepost]

I just checked, and my data per line is $20 (used to be $15 up until Nov when I changed plans, forgot that I did that). So now they charge a flat $20/line, instead of charging $40 and then giving you credit.

Which is a nicer deal for those who were on plans that were below 6GB as they only got a credit for $15/month (and thus paid $25/month), but not as nice of a deal for those on 6 GB or higher plans as they got a credit for $25/month (and thus only paid $15/month).

 

[2010mini]

Still fail to understand how this is possible. I've been holding onto an upgrade and pretty upset about losing it. How is paying full price for a phone spread out over two years cheaper than paying up front? For an iPhone 7, I can pay 199.99 today for a two year contract or can sign up for a payment plan of 27.08 monthly paying a total of 650 over 24 months. I could be completely missing something but always saw the doing away with contracts to actually be a greedy move by carriers to not subsidize phones.

LOL. You actually think you got the phone for $199? The entire cost of the phone was hidden in your contract.

 

[rcooked]

I'm hoping T-Mobile will perhaps start a shift and other carriers follow on the unlimited data bandwagon.

 

[Apple_Robert]

While we are on the subject of Verizon, I noticed that I was given an extra gigabit of data (as a random bonus for the month). I am a new customer and noticed the extra data as soon as I paid my first bill. Is Verizon in the habit of random gestures like this, or is this a data welcome as a new customer?

 

[kazmac]

It's about time! They should have been got rid of them. Now, they need to get rid of all that company branding they put on their smartphones. I am surprised Samsung hasn't put their foot down and told them no you can't put it on our devices.

Yeah that is annoying as hell. Ditto for the upgrade charge.

 

[C DM]

While we are on the subject of Verizon, I noticed that I was given an extra gigabit of data (as a random bonus for the month). I am a new customer and noticed the extra data as soon as I paid my first bill. Is Verizon in the habit of random gestures like this, or is this a data welcome as a new customer?

Perhaps it was part of some promotion that you signed up with? They also do it when you sign up for certain things or use certain services. Like using NFL Mobile, which is sponsored by Verizon, will get you a 1 GB bonus. Or singing up for their Verizon Selects (ad) program can get that as well.

 

[Apple_Robert]

Perhaps it was part of some promotion that you signed up with? They also do it when you sign up for certain things or use certain services. Like using NFL Mobile, which is sponsored by Verizon, will get you a 1 GB bonus. Or singing up for their Verizon Selects (ad) program can get that as well.

I did open the NFL app and it did verify my status. That is probably where the bonus came from. Thanks for mentioning that.

For those in the Atlanta area considering Verizon, they have an unadvertised promotion right now with their local stores, (single line) where they are offering 7gigs for the same price as their 4 gig plan.

 

[Ferc Kast]

I think the price of the phones is becoming the major impetus for the longer upgrade cycle. Buying a new iPhone is getting closer to $1,000.

By trading in my old iPhone 6 to Apple, I was able to get an unlocked 7+ for under $700.

 

[Cmd-Z]

While we are on the subject of Verizon, I noticed that I was given an extra gigabit of data (as a random bonus for the month). I am a new customer and noticed the extra data as soon as I paid my first bill. Is Verizon in the habit of random gestures like this, or is this a data welcome as a new customer?

I just signed into my account and noticed a 2GB freebie, for no stated reason (and it's not rollover data). Odd ...

 

[Apple_Robert]

By trading in my old iPhone 6 to Apple, I was able to get an unlocked 7+ for under $700.

Not too shabby. My comment was mainly speaking to those who don't trade in etc.
[doublepost=1483667845][/doublepost]

I just signed into my account and noticed a 2GB freebie, for no stated reason (and it's not rollover data). Odd ...

Nice bonus. Will come in handy with next month's roller over. Looks like I will be carrying 5 gig next month. Might test out the personal hotspot feature with the extra data. Never had personal hotspot with Sprint.

 

[sbailey4]

No that's not correct, when you change to a monthly payment plan (or bring your own phone to the game) Verizon issues you a credit off of your monthly per-line data fee, where the amount of the credit varies by the size of your plan. In my case, each line on a payment plan is credited $25, dropping each line's data from $40 to $15/month.

Not anymore. that was discontinued a while back.

I get where you're coming from and nothing you're saying is wrong. But for the last 2 years at least I've remained on the More Everything plab, and paid something like $80 more versus a comparable Verizon XL plan, in order to receive these subsidies. I would've switched 2 years ago since they're so much cheaper, but after accounting for the $450 subsidies the new plans came out more expensive than More Everything plans when looking at the total dollars I was paying Verizon over those 2 years(not surprising, they switched to a model which made them more money).

By Verizon doing this out of the blue, all those increased $80 monthly payments over the last 2 years were for absolutely no reason. In my situation, which I agree is pretty specific, this ended up screwing me pretty bad. Yesterday I had 2 different lines for which I was eligible to upgrade to an iPhone for $200. Today it's $650.

Where you getting $80 more from? $80 a month?

Thats a bunch of BS you were told. Sounds like you talked to a rep that didn't know what they were talking about, but if it is true on Verizon's part then I hope you eiher switched to the new plan or got a new phone. Once you get a new phone it automatically lowers the monthly to non-contract price.

Nope not BS. She was very knowledgeable. And I switched plans not new phone, bonus data was expiring. Maybe you should check into it. That was discontinued some time ago.

I just checked, and my data per line is $20 (used to be $15 up until Nov when I changed plans, forgot that I did that). So now they charge a flat $20/line, instead of charging $40 and then giving you credit.

yeah that is for the new plans. The month-2-month credit has been discontinued.

 

[John vzw]

Still fail to understand how this is possible. I've been holding onto an upgrade and pretty upset about losing it. How is paying full price for a phone spread out over two years cheaper than paying up front? For an iPhone 7, I can pay 199.99 today for a two year contract or can sign up for a payment plan of 27.08 monthly paying a total of 650 over 24 months. I could be completely missing something but always saw the doing away with contracts to actually be a greedy move by carriers to not subsidize phones.

What you're missing is that on a contract you paid $40 a month access whereas on device payment it's $20. Overall a contract cost you about the same or a few dollars more over the course of 24 months plus you are locked into a contract. You're not on device payment. You're just responsible to pay for the phone should you cancel the line.

 

[campyguy]

I'm still playing the Best Buy Method to keep my UL data for 4 lines under contract. Following a couple of other forums - DSLForums and HoFo - there are some VZW resellers still seeing the option for 2-year contracts in their system along with gripes about the ridiculously small sample size of about 1400 subs on the 4 major carriers. Whatever, not worried about it. I've got a BNIB 64GB iPhone 6S+ to sell that I bought for $229 +tax (it's still sealed) using the BB and Sell Method, extending my contract on that line until 11/18 to go along with another line I used to buy a 64GB iPhone 6S for $199 and flipped for $650 - that line's under contract until 10/18. My other two are still over 18 months out. VZW puts the rules and restrictions out there, and I play by their rules. Thx, SlickDeals…

I don't beat up their network. I like the same cost every month and not having to check my account ever. The nitwits in the corporate stores are pablum-fed sales automatons working solely for commission - they push a message and make it a mission to get subs on a more expensive plan, and I have zero empathy for them. As for the abusers, rather, those using the network with derision and without care - some who've bragged about using 1TB+ per month, I have zero empathy for them.

 

[C DM]

I'm still playing the Best Buy Method to keep my UL data for 4 lines under contract. Following a couple of other forums - DSLForums and HoFo - there are some VZW resellers still seeing the option for 2-year contracts in their system along with gripes about the ridiculously small sample size of about 1400 subs on the 4 major carriers. Whatever, not worried about it. I've got a BNIB 64GB iPhone 6S+ to sell that I bought for $229 +tax (it's still sealed) using the BB and Sell Method, extending my contract on that line until 11/18 to go along with another line I used to buy a 64GB iPhone 6S for $199 and flipped for $650 - that line's under contract until 10/18. My other two are still over 18 months out. VZW puts the rules and restrictions out there, and I play by their rules. Thx, SlickDeals…

I don't beat up their network. I like the same cost every month and not having to check my account ever. The nitwits in the corporate stores are pablum-fed sales automatons working solely for commission - they push a message and make it a mission to get subs on a more expensive plan, and I have zero empathy for them. As for the abusers, rather, those using the network with derision and without care - some who've bragged about using 1TB+ per month, I have zero empathy for them.

It seems like as of today those contract options might also be done for.

 

[redpandadev]

Thanks this makes sense. I must be on an older plan or something, as my current bill charges 20 bucks a line for access fee. I have a 5 person family plan. We did have two phones that were on the payment plans, not sure how that changes things for the others, but 3 were on two year contracts with 1 having a subsidized upgrade available and the other two coming due in the next month. Unfortunately looks like this change did rip me off.

If your line access is currently $20, then when you decided to do a 2yr contract upgrade, it would be increased to $40 at that time.

 

[viachicago22]

If you buy the phone outright and swap the SIM card yourself, you will incur no fee. I did this myself on VZW.

That's very good to know!

 

[B4U]

Not for everybody. I was paying slightly over $130.00 a month with AT&T when I first got my subsidized iPhone and had a plan that allowed for tethering and had an adequate amount of data, SMS messages and talk time.

I now pay less than $60.00 a month for my plan. If I upgrade my phone it rises to slightly above $90.00 while paying the phone off then drops down again after the phone is paid off.

The phone is financed through AT&T at 0% interest and can be paid off in full anytime. I don't have to pay the full cost of a new phone because when I upgrade I sell my old device and the $150 - $300 that brings back (depending on the model and it's condition) reduces the price of the new phone.

You just need to look at your usage, look at the various plans out there and the coverage available in your area then decide which provider and plan is right for you. The longer you go between upgrades the more money you save. I upgrade every 2 - 3 years.

The savings have been significant! Especially when I can go a third year without upgrading the phone.

I am very glad that it worked out for you.
My family of 3 lines did not see any price difference after AT&T eliminated the 2 year contract.