• Verizon Announces a New Set of Core Subscription Plans, Drops Subsidized Phone Pricing



    Verizon recently announced a new set of core subscription plans that eliminate contract-based phone subsidies in favor of combinations based on the device chosen and the amount of data. Starting August 13, new customers will pay $30 per month for 1 GB of shred data, $45 for 3 GB, $60 for 6 GB or $80 per month for 12 GB. Devices access fees will be roughly $20 for a smartphone, $10 for a tablet or wireless hotspot and $5 for any other “connected device,” such as a cellular data-capable smartwatch. Up to 10 devices will be able to share the same plan. For each GB over a plan’s limit, users will have to pay $15.

    Instead of subsidies, subscribers will have to either buy a device outright or add two year financing. If they choose to finance the device, fees will vary based on device cost. Those already with Verizon will be able to retain their existing subscriptions or switch to one of their new choices. There may be “some restrictions” on keeping current plans but the carrier didn’t choose to go into detail about the restrictions.

    The decision to drop subsidies also results in the death of the Edge upgrade program and follows in the steps of T-Mobile. Though subsidies are useful when it comes to attracting customers, carriers tend to lose money on the initial device sale and customers end up being locked into a contract that can only be gotten out of via an early termination fee.

    We’ll have to see how everything turns out for Verizon with the new changes.

    Source: Verizon (News)
    This article was originally published in forum thread: Verizon Announces a New Set of Core Subscription Plans, Drops Subsidized Phone Pricing started by Akshay Masand View original post
    Comments 8 Comments
    1. jackbauerctu's Avatar
      jackbauerctu -
      So $100 per month (plus tax) to have a smartphone on Verizon's network with 12 gigs of Data, AND you have to buy the phone at full retail whether it be upfront or in 24 monthly payments.....

      I'm paying 96 dollars a month (taxes included) for unlimited data. And I've had to pay for my device outright since they discontinued the unlimited data plan in order for me to keep it, AND they would not allow me to be on Verizon Edge and keep my unlimited data. I'm willing to bet that even though EVERYONE has to pay for their devices in full, they STILL won't let me make monthly payments on the iPhone 7 next year. Really stupid....
    1. tridley68's Avatar
      tridley68 -
      Quote Originally Posted by jackbauerctu View Post
      So $100 per month (plus tax) to have a smartphone on Verizon's network with 12 gigs of Data, AND you have to buy the phone at full retail whether it be upfront or in 24 monthly payments.....

      I'm paying 96 dollars a month (taxes included) for unlimited data. And I've had to pay for my device outright since they discontinued the unlimited data plan in order for me to keep it, AND they would not allow me to be on Verizon Edge and keep my unlimited data. I'm willing to bet that even though EVERYONE has to pay for their devices in full, they STILL won't let me make monthly payments on the iPhone 7 next year. Really stupid....
      Corporate Greed.
    1. magusxxx's Avatar
      magusxxx -
      Does shred data only work if you're on a skateboard?
    1. Robmille's Avatar
      Robmille -
      Shouldn't those prices be significantly lower if they aren't subsidizing phones anymore?
    1. bigboyz's Avatar
      bigboyz -
      I love how they say you have choices and options but force you into something you DON'T want haha! Corporate America how I hate thee haha!
    1. fleurya's Avatar
      fleurya -
      People are complaining that this is still overpriced, but it is roughly comparable to T-Mobile. It's tough to compare because Verizon is using a straightforward, straight line approach while T-Mo is more difficult to tell because the per line price varies based on the number of devices and data you get.

      For example, when it comes to 2 lines and 6GB of data, I'm guessing the most popular combination, they are priced the same at $100, or $50 per line.

      T-Mo has some advantages like unlimited 2G after you hit your cap and streaming music doesn't count to the cap. But I know for a fact that 2G is essentially unusable it's so slow, and music streaming doesn't apply to everyone. Also T-Mo's network isn't nearly as good as Verizon.

      All in all I don't think they're too far off from most competition, and their strong network helps win people over when price is close enough. I switched from Verizon to T-Mo because of price. Now I'm thinking of switching back.
    1. Rcworship's Avatar
      Rcworship -
      Quote Originally Posted by tridley68 View Post
      Corporate Greed.
      We call that business. Public corporations are owned by shareholders, who are the bosses. The CEO is then required to strive for what his collective boss dictates, and that is generally maximum profit. So, the corporation is performing the necessary duties to maximize return on investment, which is the money given by the shareholders to run and expand the company. If these firms don't gain maximum returns, the shareholders can get rid of the CEO, etc. So, corporate greed is a nasty name slung at publicly traded companies by CEOs with compensation packages set by the board and shareholders. Hmmm...
    1. crslaeme's Avatar
      crslaeme -
      I don't even use my Verizon rewards points lol
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