Verizon Eliminates Contracts and Device Subsidies
by Brandon Chester on August 7, 2015 2:58 PM EST
North America has always had a fairly unique pricing structure for buying mobile devices. In many places, the concept of purchasing a device for a heavy subsidy and committing to stay with a given carrier for two or three years is unheard of, but in the United States and Canada it has always been the norm. However, that dynamic has been changing as it has become more difficult for operators to subsidize expensive smartphones for the wide market of consumers. Both T-Mobile and AT&T have moved away from the original model of contracts and subsidies in favor of installment plans or simply selling devices at full price, and today Verizon announced that they will follow in their footsteps.
With Verizon's new plans, there are no more contracts and no more device subsidies. Instead, consumers pay for their phones, pay for a bucket of data, and then pay a fee for each device that they add onto the account. The base monthly data fees are 1GB for $30, 3GB for $45, 6GB for $60, and 12GB for $80. On top of the data bucket fee, users will pay $20 to add a smartphone to the account, $10 for a tablet/data stick, and $5 for a smartwatch with cellular capabilities. Additional data over the limit will cost $15 per gigabyte,
As for existing consumers, Verizon will apparently offer avenues for them to get another subsidized device when they transition to these new plans, and they can also hold onto their older plans if they desire. Verizon customers interested in the new plans can switch over when they go live on August 13.
Source: Re/code
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RussianSensation - Sunday, August 9, 2015 - link
Just curious how you are using 25 GBs of data a month on your phone? Are you a student or working outdoors? My work has wi-fi, home has wi-fi, car has navigation system. Are you streaming high definition movies/music at work or something?khanikun - Monday, August 10, 2015 - link
I've hit 1TB on my phone before. I had my home computer tethered to it and had no dsl/cable/fios/etc. The phone was my internet source.khanikun - Monday, August 10, 2015 - link
I still have T-Mobile's old plan, when unlimited was unlimited. Not this high speed, low speed crap. $50 a month for unlimited everything. Grandfathered in babyMorawka - Sunday, August 9, 2015 - link
Cricket is tmobile dudeMorawka - Sunday, August 9, 2015 - link
nevermind I was thinking virgin.. however I bet your throttle is much lower than 8 Mbps.. most throttles are in the kbps range.Chaser - Tuesday, August 11, 2015 - link
MNVO's can save money but you get what you pay for. MNVOs purchase excess, projected unused, voice and data services from the primaries. Go into an AT&T store and they will explain to you how they are different. MNVO users are second teir customers. In other words if there are 50 people on their AT&T phones accessing the same tower and a Cricket person tries to make a call guess who goes first? Guess who doesn't get service if that tower's capacity is fuill from regular AT&T customers. Also roaming with MNVOs? Good luck. So sure. If you live in a metro area and stay put there then it can be a viable alternative if you are OK with playing second fiddle to the subscribers. But the idea it's the "smarter" choice? You get what you pay for.hansmuff - Friday, August 7, 2015 - link
Well ain't that something. Still staying with TMO.EnzoFX - Monday, August 10, 2015 - link
We should all thank TMO for this.
Mr Perfect - Friday, August 7, 2015 - link
Wow, what's next? Retailers including tax in advertised prices?So do these data buckets roll over, or is it strictly use it or loose it? Also, dos this mean that phones will now be unlocked from day one? Will VZW still be standing between Google and users when it comes to rolling out Android updates, seeing as they don't have a claim to the device anymore?
StargateNH - Friday, August 7, 2015 - link
HAHA, no way they would allow roll-over. I wish, but I am positive there is no way.