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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
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.
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.
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?