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Verizon Introduces New Monthly Service Plans, Eliminating Smartphone Subsidies for New Customers
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No, the capex numbers for all of Verizon were twice that. The $10.5B is just their wireless capex.
And have you ever been to Wyoming? As it has plenty of topography, and a land mass that is more than then entire UK.
I just ordered a 64GB Grey iPhone 6+ from BB with one of my two remaining upgrades on my legacy Nationwide Plan, and I'll use the "Best Buy method" spelled out on the newest of the Slickdeals threads - I snagged two 128GB iPhone 6 handsets last fall this way and kept my UL data. I'll likely flip the 6+ after I activate it and keep my ULD, then bank that money for a 6S. I have one more line to upgrade but I need a different SIM as it's a micro and not a nano, but I'm doing this one at a time.
As to the speculation about VZW making this move in relation to the rumored upcoming release of the new iPhone model, I offer a "yes, and not the whole story...". I agree that the new iPhones are a motivation, but now that VZW is out of the control of Vodaphone for the first time during an iPhone release they can maximize their profits even more. Also, a few months ago, Intel announced they're ceasing their subsidizing of the Atom chips that go in those cheap Android phones and with HTC on the ropes, those Android phone prices will be creeping up sharply soon, and I suspect VZW will be REALLY rolling in the green the next fiscal quarter...
As to the speculation about VZW making this move in relation to the rumored upcoming release of the new iPhone model, I offer a "yes, and not the whole story...". I agree that the new iPhones are a motivation, but now that VZW is out of the control of Vodaphone for the first time during an iPhone release they can maximize their profits even more. Also, a few months ago, Intel announced they're ceasing their subsidizing of the Atom chips that go in those cheap Android phones and with HTC on the ropes, those Android phone prices will be creeping up sharply soon, and I suspect VZW will be REALLY rolling in the green the next fiscal quarter...
This is an interesting point. I do suspect the usual iPhone upgrade sales will be lower this fall without the subsidies. We were going to upgrade our 5s's only because we were paying for the subsidy anyway. In light of no subsidy, we will keep our existing 5s's for another year or two.
That's why there's the financing option, which gets the phone into people's hands for even less up front than the subsidized/contract option.
Wait so will there be shared data or no? I'm confused. Is it only individual data for each line? Or can you still do many lines going toward the same data cap?
I literally was about to change from nationwide to more everything tomorrow... So this news is kind of annoying and it makes me nervous about whether More Everything is a better deal or if we should wait for the new plans. We need more data and shared sort of makes sense for my family. Also, we are sick of not having tethering. So yeah. We pay about ~$280 per month for 4 smartphones with 2GB each on the old nationwide plan and also a basic phone with unlimited texted and such.
I literally was about to change from nationwide to more everything tomorrow... So this news is kind of annoying and it makes me nervous about whether More Everything is a better deal or if we should wait for the new plans. We need more data and shared sort of makes sense for my family. Also, we are sick of not having tethering. So yeah. We pay about ~$280 per month for 4 smartphones with 2GB each on the old nationwide plan and also a basic phone with unlimited texted and such.
It's shared data. So far, in a somewhat generalized sense, for those not under contract, the new plans will be slightly better (as far as the cost goes) if they are sharing less than 6 GB, and slightly worse if they are sharing more than that.
I repeatedly looked at the AT&T Next plan. I compared the total monthly cost of my service on the subsidized plan vs. the total cost of service if I had AT&T Next. Without including the price of the phone through Next, the Next plan was exactly $10 less per month. That would equate to savings of $240 over a two year period. However, the cost of the iPhone was $27.50 to $42.50 per month in addition to the plan. That meant that I would be paying $17.50 to $32.50 per month more than I currently paid depending on the phone I chose. It was not a $15 or $25 discount. And I did not calculate $450 in additional charges over a two year period. The truth was that I would pay more money using the Next model. Considering I have a Masters in Accountancy and perform a fair amount of analysis for a living, I am quite certain that I correctly estimated all the costs, inclusive of the $36 (now $40) fee that is tacked on for 2 year subsidy renewals (was $18 a few years ago) and I considered the Next 12, Next 18, and Next 24 in my model for both the iPhone 6 and iPhone 6 Plus models.
Now considering they charge me the "activation fee" or whatever it is called and that while it isn't $15 or $25 less, by going on Next I can save some money, Next does increase my Total Cost of Ownership and Service for each generation phone I have. And that cost increase would actually be increased further if I opted to get a newer device sooner than the completion of a Next payment cycle (forcing me to turn in the device rather than complete the path to ownership) whereby I could sell it like I do my subsidized phone when I upgrade.
Original iPhone 2G 2007: $499 - sold in 2008 for $325.
iPhone 3G 2008: $199 - still serving as an iPod Touch.
iPhone 4 2010: $199 - sold in 2012 for $225.
iPhone 5 2012: $399 (64GB model) - sold in 2014 for $350.
iPhone 6 Plus 2014: $399 - still in active use. Mine to sell when I get my iPhone 7...
Um. Yeah. I worked there. Are you referring to Jackson Hole or where people actually live and work? Wind is not topography. Neither is flat land.
Please cite these numbers.
"Existing customers will be able to move to the plans or retain their existing plans, with some restrictions that have yet to be detailed."
Curious about these "restrictions".
Curious about these "restrictions".
This is patently false and downright ridiculous. Who treats T-Mobile with "derision"? Aside from ATT or VZW executives? Who " venerates" VZW? People use what is best, or what they feel is best, for them. Simple as that. No nationalistic bravado included.
I'm not sure if switching to More Everything right now or waiting to go to the new plan would be a better deal. We will be getting the $80 10GB plan if we go more everything, but the new plan is $80 for 12GB... We have 5 lines, 4 smartphones (1 is off-contract) and 1 basic phone. Advice?
Well, it sounds like you won't be able to switch to the new plans for some time most likely anyway since you have lines that are still under contract. That said, you can still switch to the More Everything plan right now while it's still there if you want.
These "Higher Costs" are also offset by larger subscription pool and economies of scale. Yes, America is big. But Sweden's population density is 55.5 per square mile. The US is 90.6 per square mile. That means, for every tower in America, you have almost double the potential subscribes, and thus, infrastructure is probably more expensive in Sweden.
One thing not covered is the amount of taxes-both direct and indirect-on cell phone service. This is a big knock on. The Duopoly also plays a role. But California should have far cheaper service in Sweden considering on it its own it is one of the most dense places on earth.
Verizon and other carriers who are moving away from "contracts" are still pushing "device contracts".
That is the key to them. If everyone purchased phones at full price, the carriers would be freaked out at their all important "churn" rate. Since 70% of ATT customers are already on ATT NEXT. The likely hood of those customers paying their phone in full and leaving ATT is slim. Carriers know this.
Add the carriers do not pay full MSRP for these cell phones. We all know even with Apple products that buying in bulk usually results in a 10-15% discount from the manufactuers. Yet Verizon and ATT won't pass these savings to customers. In a way, especially when ordering online where there is little over head. It's another pure profit for them to be putting you on these payment plans and having you pay full price for these phones.
That is the key to them. If everyone purchased phones at full price, the carriers would be freaked out at their all important "churn" rate. Since 70% of ATT customers are already on ATT NEXT. The likely hood of those customers paying their phone in full and leaving ATT is slim. Carriers know this.
Add the carriers do not pay full MSRP for these cell phones. We all know even with Apple products that buying in bulk usually results in a 10-15% discount from the manufactuers. Yet Verizon and ATT won't pass these savings to customers. In a way, especially when ordering online where there is little over head. It's another pure profit for them to be putting you on these payment plans and having you pay full price for these phones.
AT&T hasn't always offered the $15 / $25 "Mobile Share Value Discount". That said, AT&T Next, as it was first introduced, *WAS* a worse offer even with the discount. But, AT&T had to improve Next because like you, it was figured out, known, and no one was shutting up about it (most notably John Legere). But, I also forgot to include a class of post-paid customers in my list. Out-of-contract, now month-to-month, or in other words contract completed customers who also get the $15-$25 discount, as well. (except probably the grandfathered unlimited data ones. AT&T will do anything to try and make them switch)
Don't believe me checkout the † text when you purchase: "Smartphones on AT&T Next, month to month, purchased at full price or BYOD also receive this discount. If you upgrade to a new 2-yr agreement this discount will be lost."
Completing your 2-year contract moves you to a month-to-month customer and gains you the discount and "upgrading" (contracting for a new iPhone) removes the discount. So we're not even comparing Contract to Next anymore. We're comparing Contract to completed Contract. As an on-contract customer you are the only class of customer to pay the full "Mobile Share Value Device Access Charge".
$450 (your subsidy) / 24 months = $18.75 / mo
So why isn't the service discount $18.75? That would just be to totally transparent, then wouldn't it? But, also because then they couldn't use the service discount as weapon / incentive. If you buy 10GB data per month we'll give you $25 off. If you don't we'll penalize you a bit.
AT&T Next and the "Mobile Share Value Discount" was only introduced as a response to T-Mobile killing their subsidy and contracts and overage fees, paying ETFs, Data-stash, Wi-fi calling, etc.... So that said, your understanding does have some merit. Before that, they never gave any discount.
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Doesn't matter what they do until they expand their coverage (Adding new towers. Not upgrading existing towers). The cheapest plan doesn't mean a thing if you can't reliably connect.
With Verizon that doesn't seem to be an issue for most. Of course not everyone, but it's certainly less of an issue by far compared to other carriers (aside from AT&T that has fairly comparable coverage).
Bottom line is all big four carriers are essentially forcing people off cheap flip phones whether they like it or not. Because there is no longer and cost savings having a flip phone with no data.
There is still a large segment of the population that doesn't care for smartphones. Unfortunately unless u have grandfathered old plans. No longer possible to add $9.99 add a line flip lines for grandpa and grandma.
There is still a large segment of the population that doesn't care for smartphones. Unfortunately unless u have grandfathered old plans. No longer possible to add $9.99 add a line flip lines for grandpa and grandma.
On a related note when it comes to flip phones for grandpa and grandma, my mom is 77 and loves her iPhone. Until she upgraded to her 5s, she had a flip phone and said she felt embarrassed to take it out to make a call as smartphones became popular, especially when the iPhone 4/4S came out. Maybe she's an exception since she seems to be more comfortable with smartphones than many of her peers.
Sounds fishy, Verizon doesn't do anything unless it makes them money.