News Verizon dumping phone contracts

Discussion in 'The Howard Stern Show' started by Limo Wreck, Aug 7, 2015.

  1. Limo Wreck

    Limo Wreck Aboard the great mothership Staff Member

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    Verizon, the nation's largest wireless provider, will stop offering phones at discounted prices when customers sign two-year service contracts.

    The move was made in the name of simplification, but it could result in some customers paying more.

    All wireless carriers have been trying to wean customers off subsidies, in which a $649 iPhone 6 goes for $200 with a two-year contract. Instead, carriers have been encouraging people to buy phones outright by paying the full retail price in monthly installments. A few carriers, namely Sprint, also offer leasing options for a lower monthly fee, but the customer doesn't get to keep and resell the phone without additional payments. Verizon is the second national carrier, after T-Mobile, to end subsidies entirely for new customers.

    Existing customers will be able to keep current plans. Verizon says there will be restrictions, but it didn't elaborate. For instance, it wasn't immediately clear whether customers keeping the current plan will still qualify for subsidized phones.

    Under the new plans, which take effect Aug. 13, prices for voice, text and data services will drop by roughly $20 per month compared with subsidized plans. But customers will no longer get the subsidies on the phone, valued at about $19 for an iPhone 6. But there are variations, so some will pay a bit more, others a bit less.

    Verizon is also streamlining its data plans to four main options, ranging from "small" at 1 gigabyte to "x-large" at 12 gigabytes, all sharable under family plans. Verizon currently has 15 options ranging from 0.5 gigabyte to 100 gigabytes. Two gigabytes is plenty for most single-line customers, though a few hours of streaming video could eat that up.

    Customers will no longer have two-year commitments, but they might be stuck with Verizon for two years anyway as monthly installments for the phone stretch over that time.

    Here's a look at how the changes affect various customers. These monthly prices are for unlimited calling and texts and a set amount of sharable data. The phone costs extra.

    ———




    INDIVIDUALS:

    Those with contracts paid $60 a month for 1 gigabyte of data and $90 for 3 gigabytes. Subtract the $19 worth of subsidies on the iPhone 6, and the monthly cost was $41 for 1 gigabyte and $71 for 3 gigabytes.

    Those who were already buying their own phones paid $45 for 1 gigabyte and $75 for 3 gigabytes.

    Under the new plans, customers will pay $50 for 1 gigabyte (a price increase for both groups) and $65 for 3 gigabytes (a price cut). The 2 gigabyte plan is being discontinued, so customers will have to choose more or less.

    ———


    COUPLES:

    For two lines, couples paid $130 a month for 3 gigabytes and $150 for 6 gigabytes under subsidized plans. Subtract the value of the subsidies ($38 for two iPhones), and you got $92 for 3 gigabytes and $112 for 6 gigabytes.

    Couples who bought or brought their own phones paid $100 for either 3 gigabytes or 6 gigabytes, thanks to steeper discounts Verizon had offered to customers who declined subsidies and chose larger data plans.

    Under the new plans, that couple will pay $85 for 3 gigabytes (a price cut) and $100 for 6 gigabytes (a price decrease from subsidized rates, but no change for others).

    ———

    FAMILY OF FOUR:

    Four lines sharing 10 gigabytes cost $240 a month under subsidized plans, or $165 after subtracting the $75 value of subsidies on four iPhones. Those who weren't on subsidized plans paid $140 a month.

    There will no longer be a 10 gigabyte option. A new 12-gigabyte plan will cost $160. So that's a price cut for those on subsidized plans and an increase for others (but those customers are also getting more data to share).
     
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  2. EndOfLine

    EndOfLine PLATINUM SPONSOR VIP

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    It's the same thing - most won't notice a difference. Even when you pay $200 for your new phone, you're still making payments on it - with the new method you'll see it more clearly.
     
  3. SouthernListen

    SouthernListen I don't follow the crowd. Sorry about that. VIP

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    My verizon signal has not been as consistent lately . Wonder if this is related. They've been trying to sell "pay by the month" phones for a while now, I guess they're going all in now on it.

    Good, maybe this will make some people realize how much they're actually spending for the phones they feel they need to upgrade constantly. The service was always overpriced because of the "free" phones.
     
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  4. Bosch76

    Bosch76 2016 Politics POTY Gold

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    Is this a paid ad?
     
  5. SouthernListen

    SouthernListen I don't follow the crowd. Sorry about that. VIP

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    "Four lines sharing 10 gigabytes cost $240 a month under subsidized plans"

    I feel sorry for people with families to support. Peer pressure to spend $240 a month on freaking cell phones. Just about what some young people pay for health insurance each month. But they can't afford that, of course.
     
  6. RobsDad

    RobsDad Well-Known Member VIP

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    Can you hear me now?
     
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  7. R.P. McMurphy

    R.P. McMurphy Well-Known Member

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    ...i dont know why anybody would use a contract provider. seriously i get unlimited service from boost mobile wich is basically sprint. i started at 55 a month but its down to 40 a month plus tax because i pay on time same day every month. when i was in california i was getting texts from people in washington and elsewhere so i have no complaints with the service.
     
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  8. Rupert Pupkin

    Rupert Pupkin That Ass is Attached to Daniela Lopez Gold

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    A Verizon store employee told me 2-3 weeks ago that there are no more contracts when I asked about upgrading to an IPhone 6 and signing a new contract

    I have to wait until October to upgrade my phone
     
  9. lastlaugh

    lastlaugh Well-Known Member

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    I do that too with Page Plus, which is owned by Verizion. $40 a month for unlimited talk, text, and web is not a bad deal at all.
     
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  10. Limo Wreck

    Limo Wreck Aboard the great mothership Staff Member

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    Are your internet speeds throttled back after you use a certain amount of data?
     
  11. broccoli rob

    broccoli rob thanks for the memories DW3

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    My two business iPhones have been with Verizon since they started carrying iPhones. I just called Verizon to see what was up with this and they assured me I will not have a problem upgrading my phone as usual. My two iphones are on a business plan, so maybe the business plans are unaffected? They said Verizon relies on these 2 year upgrades because most of new iPhones don't qualify for EDGE, so she said its imperative that Verizon gets these 2 year renewals through the phone upgrades. I am not going to panic yet.
     
  12. newcastlefan

    newcastlefan גֵּרְשֹׁם VIP

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    except i wont be buying my phone from Verizon. I will buy it from Apple and then Verizon can fight for my business. Currently the only reason I get my iphones through Verizon is the convenience; remove that and they can't compete.
     
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  13. MutteringJohn

    MutteringJohn Well-Known Member

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    This will absolutely impact iPhone sales. People will be much less inclined to upgrade their phone at the end of the two year cycle. Obviously it won't necessarily impact a new iPhone customer. Even if you are saving money monthly an existing customer would have to layout $649 for a new phone. Now existing customers might wait two cycles before upgrading. If you have the 6 maybe you wait till the 8 before trading in. Getting a new phone for $199 brought a lot of people to the table. I wonder if AT&T is going to go the same route.
     
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  14. Bye You!

    Bye You! The n word guy Gold

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    I upgraded to the big 6 last month. Got a good price. Just in time, I guess.
     
  15. Bye You!

    Bye You! The n word guy Gold

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    No way I would have upgraded if it was full price.
     
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  16. captbill

    captbill Well-Known Member

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    I don't see mobile phones as a necessity so up until about a month ago I had a Tracfone with prepaid service. It cost me about $30/month when all was said and done. I saw that Walmart has "Family Mobile" with unlimited talk, text and data for $30/month. So I bought an Android phone for about $100 and am using that. The only downside (if it is a downside) is that after 1 BG of data it goes from 4G LTE to 2G. Not a problem for me.
     
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  17. lastlaugh

    lastlaugh Well-Known Member

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    I think so.
     
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  18. synch22

    synch22 Well-Known Member

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    hmmm...wife and I have unlimited so paid for phones off swappa. Interested to see if this changes anything.
     
  19. R.P. McMurphy

    R.P. McMurphy Well-Known Member

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    ...i never noticed a difference but i dont use my phone all day for internet and videos. i did stream a live trial on my phone before while out was out of the house and didnt want to miss testimony. the stream worked great but i never noticed slow speeds in the years ive had boost. my kid has boost mobile too and he watches a lot of videos and does facebook shit with his phone too and hes never mentioned anything to me. i never hesitate to use my phone for worrying about using too much juju but i mostly use a laptop or kindle (thanks @SomerSky ) to post.
     
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  20. R.P. McMurphy

    R.P. McMurphy Well-Known Member

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    ...ive heard that they do but i havent met anybody thats mentioned it. if your going to go over its probably pretty close to the end of the month anyway.