Verizon says Goodbye to Contracts and Subsidies

By | August 8, 2015

Verizon announced brand new organized monthly plans for the new customers; however by August 13, the wireless contracts and subsidies will no longer be available for the new customers.



Verizon Brand New Monthly Plans

Verizon brings up four new LTE (Long Term Evolution) plans for the customers instead. All these plans can be shared among 10 devices and also benefit us with unlimited calls and texts. These data plans are assembled and named in a very interesting way but if you cross the maximum set data plan in a given month, you’ll have to pay additional $15 for per GB used.

• S – $30/month for 1GB of shareable data
• M – $45/month for 3GB of shareable data
• L – $60/month for 6GB of shareable data
• XL – $80/month for 12GB of shareable data


However, you need a SIM card in a Smartphone in order to use these plans and the entrance fee will charge you $20 for a smartphone, to share your data plans with other devices like connecting to a tablet will cost around $10 per month, for smartwatch it will cost around $5; so actually, these new plans are not cheaper than the old plans.

The Verdict

Earlier the plans were organised in a very complicated way, it was time-consuming and was difficult to understand. The existing customers can directly switch to the new plans, however when the contract ends, Verizon will automatically reduce the access fee. The existing customers can either stick on to the same plan or they can switch to the new plans, according to their wish. The upgrade and downgrade of the plan with the new offers is free for the existing customers.

Previously, Verizon was persuading people to buy a new phone and sign a new contract with subsidized device prices. But the big switch will be when it’s time to buy a new phone, now Verizon offers two option, one is you can either pay for the new device beforehand or you can sign up for monthly device payments.

Buying a new phone is become less terrifying because of the new plans offered by Verizon. It is more transparent and it should become a popular option for the customers, so that they don’t end up paying the same price as the full beforehand price.

The rival companies like AT&T and Sprint still offers contract options to the customers but Verizon has deleted that option completely for new customers. This idea was inspired by T-Mobile’s concept and they have been doing this sort of thing for years, it is highly inspiring other competitors to catch up this concept and highlight it.
Some customers may keep their phones longer, and some might opt for cheaper devices, such as Motorola Phones, It will be interesting to watch out the high-end smartphone makers like Apple and Samsung, will suffer from this big switch.