The line access fee goes from $20/mo to $40/mo. So you're adding $480 to that $199.99 phone.
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Verizon Eliminates Two-Year Contracts for Smartphone Upgrades
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The line access fee goes from $20/mo to $40/mo. So you're adding $480 to that $199.99 phone.
Good. As a Verizon sales representative, I'm sick and tired of explaining to angry customers that the new way of upgrading saves them money and offers more flexibility than a 2 year contract. I'm glad there's only one option available now.
If you buy outright, what are the chances you'll get to keep your UDP? Just curious.
You'll definitely be able to keep unlimited data if you buy the phone outright. Unless you happen to be a high usage customer. We were told today that there are about 8k high usage unlimited data customers (think 100+GB monthly) that will soon be "asked" to move to a different plan or they will have their line disconnected.
Yup. If you buy a new phone while a promotion is going on, you can get some great discounts.
Well, it certainly can, depending on the plan the customers have. While contracts and subsided phones can still be a better deal for some that are on older plans that they still like and want.
Absolutely, I agree there. There are people with older plans and also single line plans where the 2 year contract pricing would be much better. I do feel sorry for those customers.
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Just to further clarify for you: If by "buy outright" you meant purchase a phone at the retail value upfront and just swap the phone onto your line, yes you will keep your UDP.
However, if by "buy outright" you meant purchase the phone with the 24 monthly payments, no. That will no longer be an option for UDP customers as of the fifth.
Yeah, I have a feeling that any "backlash" today will be met by "is this your signature on this contract?" The fat lady has sung on contracts in the US, just come to peace with it to all those people who don't want to face the reality the rest of the world has become accustomed to for years and years.
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Looks like the party will soon be over for them.
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How are plans that were associated with subsidized phones helpful for people who people who pay full retail? Part of the cost of the plan pays for the device. The carriers used to hope you wouldn't upgrade because then they would continue to pay for your device after it had been paid off. Meanwhile, they were subsidizing it with MSRP numbers but only paying bulk wholesale for the device. The average piece of equipment only took a few months to write off. Not only did they bill the customer for the difference in price they also got to write it off as a loss. If you bought a phone at full retail in order to keep the plan, you still paid the monthly subsidy built into the plan. The cost of the plan should have gone down because they phone was no longer being paid for. When other plans became more profitable they discontinued it and began harassing people who didn't switch. (Notice I didn't say it became unprofitable.) When people didn't switch they just changed what the plan claiming they were. So I ask again. Who benefits from the subsidized phone? Cause it sure as heck isn't the customer.
This is tricky with VZW. The "New Every Two" plan guaranteed a "free" phone after two years. So those would be paid after the contract ended when signing a new contract. While I am sure there are still some people still on those plans it was discontinued at least five years ago. VZW has had enough time to justify that offer is no longer valid if someone pushed it. The subsidized plans that replaced it were paid into the contract you were signing. There is some variation in the language, as it has been changed more than once since "New Every Two" ended, but for the most part customers got new contract pricing and nothing more. (Again, there are a few exception, and if you have one I am sure they have a credit you can push for to compensate you.) Most of their customers won't qualify.
Oh, well on a scale of 1 to 10 VZW is an 8.5 when it comes to how easy it to identify how they want to make their money this month. It's all about how they pay their sales reps. What are the reps being given the highest commission or SPIFFS for? Two things that make figuring it out hard is that some pay is supplemented by their vendors and having an in with a rep who will tell you honestly how they are paid. Just be careful because sometimes sales and management don't have directly overlapping motivation. The overhang is either a stretch goal or windup for the next commision cycle. For what it's worth vendor perks are typically associated with winning vendor swag in addition to devices and cash. Not hard if you put the effort in, but not nearly as easy as the big box jewelry stores that often still set MSRP at four times cost.
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I am not going to say that is incorrect information, but I'm hesitant to agree that 100 GB/month is the threshold being used. However, we might be working on different time scales for the word "soon".
Personally, I find the behavior abhorrent. I downloaded ESO for XboxOne today and it was 72 GB. One game, without even playing it used almost 3/4ths of a 100 GB. When you combine that with the free Xbox Live Gold games they give I downloaded almost 150 GB of data this afternoon. Before you start saying anything about how mobile and landline data is different try and remember that every major telecom hearing in the past 10 years has combined mobile, landline, and satellite ISPs availability to defend approval of their mergers. It's only different when increase demand forces greater investment in a telecom's infrastructure instead of dividends.
Those who are on an older plan that they like and want to keep benefit from subsidized devices and contracts as they would be paying the same amount whether or not they get a cheaper or potentially free device, so being able to get a cheap or free device is certainly beneficial to them over getting a new device on a payment plan or outright as they would pay the full price for it essentially rather than just a part of it or perhaps nothing at all (again, this is assuming someone wanting to stay on an older plan).
As far as additional things coming into play with contracts in relation to next device purchase and contract, there definitely have been additional perks like New Every Two around that would play a role, but they haven't been there for quite a few years now and more than likely wouldn't be of essentially any consequence to anyone at this point or in the recent past.
The outrageous retail prices of these phones I think are going to discourage ppl from buying new phones more often. I personally don't see myself paying $50 a month for the foreseeable future just to keep swapping a phone out for a newer model every year. Especially since technology has plateaued to a point where there just isn't any significant difference from one model to the next. But that is just me, I am sure there will still be a portion of the public that will keep financing phones at the crazy retail price they are asking for.
Well, the prices are a fair bit cheaper than $50/month, and in particular when sales or promotions are in play or trade-ins are used. Also one doesn't have to update every year and turn the device in, just pay it off over 2 years (or before) and keep the device or give it away or sell it, similar to how it was done with subsidized devices and 2-year contracts.
Was just on the VZW website and 2 year contracts are still be offered there. They are also offering deals on latest model phones for $10/mo with a trade in. "Trade in must be in good, working & cosmetic condition." I wonder if that means I can send them my 5 year old phone. It works, it's in good cosmetic condition.
I believe they list the devices eligible for a trade-in that is part of that promotion and what that particular device will net as a trade-in.
That said, perhaps depending on your particular account or plan you are on you might still have access to contract pricing somehow.
The subsidies have been getting worse and worse as we move further away from the times when smartphones weren't to be seen EVERYWHERE and pretty much expected.
They don't need the pitch anymore and you can feel it, especially as soon as Apple got in and found more and more ways to add 100€ to your device bill here and there.
"Low" price to advertise, before all the mumbo jumbo.
Oh, need the better camera? Get the Plus! Or for the bigger screen of course, 16GB not enough, ... (today 32, good ****ing riddance on the 16GB, even though 32GB on a flagship phone is kinda sketchy as well, but eh...)
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$199.99 + $40 upgrade fee and tax on 2 year, then $40/month for the line for 24 months.
Or tax and upgrade fee up front (about $80) then a $20 access fee with the $27.08 device payment for 24 months.
40x24 (2 year contract service) = 960 + 250 (up front cost) = 1,210 (total 2 year cost)
42.08x24+80 = 1089.82.
It might not be a huge savings, but it does cost the customer less. With the added obvious benefit of not being on a 2 year contract.
I personally hope it will lead to cheaper phones as people see the true cost of a phone, brands are more likely to reduce prices. Its crazy that an iPhone costs as much as a laptop
I still say they, "they" being the wireless companies, will eventually find out that ppl will not want to pay to lease their phones on a permanent basis. Ppl will upgrade less, since their isn't a big difference from one model to the next. And sites like swappa will become more popular as time goes on.
I have a $40 a month Unlimited SERO plan with Sprint taking another $10 amonth off so $30 a month.
(Unlimited International Text and Data included through a promotion)
And I still get 2yr upgrades....What current service plan is cheaper?
(iPhone 7 plus is $459.99 on 2yr upgrade which is $510 off. $510 is more than the $350 early termination fee on my plan type.....Would still be cheaper to use upgrade and cancel service to use device elsewhere than to buy through newer lease/payment plans)
I should have held on to my old Verizon unlimited data plan. But I was tired of Verizon crippling devices (back in Windows Mobile days when Verizon variants would have lower device specs) Plus they effectively killed upgrading on that plan. Still would have been cheaper than their current Service plans.
Even my At&t Relay plan was cheaper with 2yr upgrades as the Relay plan is now the same price but without 2yr upgrade. Meaning cost the same but does not have an upgrade.
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The line access charge for a 2 year contract was $40 a month. Under the new plan it drops to $20. So say you buy an iPhone 7 for $27.08 a month then your line charge only increase $7.08 a month to $47.08 but you don't pay $199 up front. $7.08 for 24 months is $169.24 so essentially you're saving $30.
This really needed to happen. I recently purchased a phone from BestBuy.com through a 2 year contract, and no where during the checkout process did it indicate the price of the line access fee would increase from $20/mo to $40/mo. In fact, the Recurring Charges section stated "Keep your current plan" and One-time Charges showed a $40 activation fee and $0 additional line fee. Also the Verizon Customer Agreement supplied at the time of purchase doesn't specify the line access fees.
Also they didn't send me my bill with my new charges until after 14 days (at which point it is too late to return a device to BestBuy and it's too late to cancel a contract with Verizon). It's a very shady practice. I should have known better because I used to be on contract with Verizon, but I heard casually in the news that Verizon had already eliminated contracts and their plans imply they charge flat fees with "no surprises." I assumed naively the 2 year contract was just an agreement to stay with them for 2 years, not to pay a higher line fee.
In the end, after several hours of arguing with Verizon, I was able to find a loophole through which I could return the device after 14 days and still get my contract canceled without an ETF by returning it to BestBuy through their Verizon representative using Verizon's (not BestBuy's) holiday return policy for purchases made during the end of 2016. Just an FYI, Verizon's holiday return period ends on January 14 if anyone else is trying to get out of a contract.
During the conversation I had with Verizon and BestBuy employees, they told me that I should have spoken with someone during the website checkout process; that they don't have to tell me that the line access fee will increase at the time I purchase a new device on contract because there is highly likely a document somewhere in the past I signed with Verizon that detailed the line access fees (although I still wasn't provided proof of this); and BestBuy is frustrated that the carriers don't provide them accurate information on how upgrades will affect customers' monthly bills.
This all happened on January 4, so hopefully my case and probably many other people who were duped by these contracts helped catalyze the elimination of these contracts.
Also they didn't send me my bill with my new charges until after 14 days (at which point it is too late to return a device to BestBuy and it's too late to cancel a contract with Verizon). It's a very shady practice. I should have known better because I used to be on contract with Verizon, but I heard casually in the news that Verizon had already eliminated contracts and their plans imply they charge flat fees with "no surprises." I assumed naively the 2 year contract was just an agreement to stay with them for 2 years, not to pay a higher line fee.
In the end, after several hours of arguing with Verizon, I was able to find a loophole through which I could return the device after 14 days and still get my contract canceled without an ETF by returning it to BestBuy through their Verizon representative using Verizon's (not BestBuy's) holiday return policy for purchases made during the end of 2016. Just an FYI, Verizon's holiday return period ends on January 14 if anyone else is trying to get out of a contract.
During the conversation I had with Verizon and BestBuy employees, they told me that I should have spoken with someone during the website checkout process; that they don't have to tell me that the line access fee will increase at the time I purchase a new device on contract because there is highly likely a document somewhere in the past I signed with Verizon that detailed the line access fees (although I still wasn't provided proof of this); and BestBuy is frustrated that the carriers don't provide them accurate information on how upgrades will affect customers' monthly bills.
This all happened on January 4, so hopefully my case and probably many other people who were duped by these contracts helped catalyze the elimination of these contracts.
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Already checked my bill and don't think this is the case. My plan is already being charged 20 dollar access fee per line, not 40. So still unsure how this isn't a complete ripoff to me. I'm losing out on two device subsidies (total of 450 each, 900 total) and am paying the exact same amount monthly. So I save 10 bucks every two years on the activation fee (30 for monthly, 40 for two year).
Lmao so Verizon eliminated 2yr whoopty Doo I have 9 lines 5 on DP(device payment) 2 finished in which now I I pay $20/month since I finished my DP if not it would b $40/month it's not that serious u just have to do the math
Let's say u wanna go with a cheap free phone... It's $free on 2yr plus $40/month for 24months(2yr contract) that's 960 over two years...
Now on the DP it's
$168 (full phone cost) plus $20month x 24months that's 848 so plz tell me where this doesn't make sense...
OK OK so now let go on to the high end phones let's say iphone on a 2 year it's $200 plus $40month x 24months that's 1160 total
Device Payment It's
$0 down n then $47.5month($20line fee + 27.5 phone cost) x 24months that's 1140 total... So plz tell me wats the fuss about it's simple math n then it u keep the phone over 24month u then the phone payment (27.5) drop n u pay $20/month until u decide to get a new phone... Lol stop fussing n just get with the program
Let's say u wanna go with a cheap free phone... It's $free on 2yr plus $40/month for 24months(2yr contract) that's 960 over two years...
Now on the DP it's
$168 (full phone cost) plus $20month x 24months that's 848 so plz tell me where this doesn't make sense...
OK OK so now let go on to the high end phones let's say iphone on a 2 year it's $200 plus $40month x 24months that's 1160 total
Device Payment It's
$0 down n then $47.5month($20line fee + 27.5 phone cost) x 24months that's 1140 total... So plz tell me wats the fuss about it's simple math n then it u keep the phone over 24month u then the phone payment (27.5) drop n u pay $20/month until u decide to get a new phone... Lol stop fussing n just get with the program
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