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Verizon Ends Smartphone Subsidies
JoeyRox writes: Verizon has discontinued service plans that include subsidies for upgrading a smartphone. The new plans require customers to pay full price for their smartphones, either up front with a single one-time purchase, or by monthly payments. Unlike their previous subsidized plans, Verizon's new plans don't require a long-term commitment. Under the new plan, Verizon will charge flat fees for connected devices: $20 for smartphones and $10 for tablets. Subscribers will be able to pick from four data monthly packages to go with their devices: 1GB for $30, 3GB for $45, 6GB for $60, and 12GB for $80. The changes go into effect on August 13th. Existing subscribers will get to keep their current plans
I predict this will drive down the average price of smartphones, as consumers are going to aim for lower cost options more aggressively. Average meaning that there will still be $700+ smartphones, but there should be growth in the $199 smartphone market.
It somewhat relates to the Apple versus Android divide, a lot of iPhone owners are using subsidized phones on contract, especially those using the latest model. When I was shopping around for pay as you go plans and a new phone, meaning I pay full price for my phone, I saw good options in my price range for Android and older iPhone models. I don't know how well Apple will fair if people are buying the previous model instead of the latest.
“Common sense is not so common.” — Voltaire
And they're still charging too much for the amount of data.
No thanks.
A while back we were on Verizon, with the implicit subsidy until we paid the phone off. Two years are up, well, we did pay the phone off, and then I asked if we could have a bill reduction because of that. I asked for them to take the subsidy off. The look on the person's face was as if i just peed on them. How dare you say subsidy! We don't have a subsidy!!
For long time, Verizon had this unmarked subsidy in their bill. A lot of people forgot about it, and then that became pure profit to Verizon. It was never marked as "phone paydown" or whatever. Since people never saw it as that they paid for months and months for something that was already paid off.
I applaud whatever is making them more overt. TMobile maybe? TMobile has it very clearly marked in your bill.
As long as the diary contains no animal-based paper or ink products, I don't see why not.
Next step: do what AT&T did - offer financing
And T-Mobile even before that.
The uncarrier did it. Don't get me wrong, I'm not going to pretend T-Mobile is an angel, but I think they've truly changed the industry.
Yep. I have a Galaxy S3 and unlimited data and pay $68 per month (that includes a discount because I'm employed at a company that is a Verizon customer). I really would love to find a way to get a new phone and keep the unlimited data, but I don't think that's possible. I don't think they'll even let you buy a phone outright anymore and keep your unlimited. The funny thing is I use about 2 GB per month on average, so it's not even a big deal to me - just the principle of the matter.
Is there a pay as you go plan in the US that can be used with smartphones and doesn't have any monthly base cost, just per minute and per megabyte accounting?
Ting's pay-as-you-go plan has a lower monthly fee ($6 plus usage). Talk, text, and data are extra.
it sounds like Verizon wants $20 just for allowing a smartphone on their network, or what does that include besides a number that can be called?
The line fee also includes unmetered incoming and outgoing domestic voice and text. Carriers have realized that with things like Skype, Hangouts, and iMessage/FaceTime, they can no longer get away with charging per minute for calls between smartphones.
So wait, if they are selling phones at full price now, does that mean they have finally switched to GSM? If not, what kind of idiot would pay full price for a phone that is locked to the carrier?
You pay full price for the phone regardless if it's over the length of the contract, up front or part of an early termination agreement.
"A plan fiendishly clever in its intricacies"- Homer Simpson
You must be the idiot.
All modern Verizon LTE smartphones (2011+ or so) have been fully compatible with GSM/UMTS networks for years now. And yes, they're completely unlocked and can be used on any carrier worldwide. You are aware that LTE is a GSM-based standard, aren't you? And that Verizon uses SIM cards even for authentication to their CDMA network, right? And that Verizon phones are some of the MOST compatible phones on the market since they can be used on any GSM carrier for at least HSPA level connectivity AND Verizon, too? And that a modern Verizon LTE smartphone s fully compatible with the majority of T-Mobile's LTE service and can work fully on their network in most areas?
And even that you were paying "full price" for the phone even way back when Verizon was strictly an IS-95 CDMA network. It was baked into the cost of the service and was enforced through the 2-year contract. You did know that as well, didn't you?
You can buy a phone outright from Amazon that's licensed for the Verizon bands (or buy one used on eBay or Amazon or elsewhere), stick your activated SIM card into it, and off you go. If your SIM card is too large or too small for the new phone, there are cutters and adapters to move in both the "larger" direction and the "smaller" direction.
If you're willing to pay, you can definitely get either a new, like-new or used phone of any make or model that runs on Verizon's network, and get service, without ever having to directly do business with Verizon Wireless or any of their associates in order to make the change.
By the way, Best Buy will let you buy a full retail phone too, last I checked.
I'm currently paying roughly $100/month for the entire bill - two phones (an iPhone 5 and a flip phone), unlimited talk/text, 4GB data. Verizon lowered my bill around the start of the year when they dropped "New every two" and officially made it that you were paying for the cost of your phone as part of the bill, and later upped my data from 2GB to 4 as part of a loyalty bonus.
I'm paying $168 for two smart phones and a dumb phone. The base plan is $40, each of the smartphones is $40, although Verizon advertises that it is only $15, and the dump phone is $30, even though Verizon advertises that it is $10.
If you are not allowed to question your government then the government has answered your question.
Stay optimistic. It's so rare these days.
You are welcome on my lawn.
Every Verizon SMARTPHONE (did you even read the TITLE of the post?) being sold today has a SIM slot.
And no one ever said buying outright would historically (it will now) lead to a lower monthly bill. I said that you were always paying full price for the phone whether you were stupid enough to do it outright or take the subsidy which is what anyone with half a brain always did.
Ting comes close
1) 6 dollars a month per activated SIM
2) only pay for what you use (more like pay for what category you fit this month)
3) BYO phone (buy a BLU, or a nexus, or anything really.) T-mobile compatible GSM and some CDMA.
4) No extra charge for tethering your tablet. it just uses your data.
Check out their rates. I am a happy customer.
I was paying AT&T $160 for 2 phones, now I pay Ting $45 to $60 for 3 phones.
The government which is strong enough to protect you from everything is strong enough to take everything from you.