Verizon Announces End Of Subsidized Phones


Verizon[NYSE:VZ] has finally announced of discontinuing the subsidized phone under its two-year contracts. It has come up with new plans, dropping about $20 per month.

The nation’s largest wireless provider made the bold move to simplify the plans for its voice, text and data services. However, some customers may end up paying more, comparing to the existing plans.

Two years back similar step was taken by T-Mobile to end up offering handsets at discounted price. Lately it has also been seen the wireless carriers are encouraging customers more to buy phones by paying the full price in installments instead of going for subsidies. Sprint came up with smart move by offering the devices on lease for a lower monthly fee. Under the plan customers cannot keep or resell the phone without making additional payments.

As of now it is not revealed whether the existing customers of Veriozon[NYSE:VZ], who would like to keep the old plan, would still qualify for the subsidized phones. Verizon hints there will be restrictions.

Apart from this, Verizon has also come up with four main data plans dubbed as ‘small’ to ‘x-large.’ Presently there are fifteen options to choose from ranging from 0.5 gigabyte to 100 gigabytes.

The new plan’s ‘small’ package offers 1 gigabyte data and ‘x-large’ offers 12 gigabyte, and all are shareable under family plans. The plan starts at $20 a month.

It is said the prices are competitive compared to the plans of T-Mobile[NYSE:TMUS], Sprint[NYSE:S] and other wireless carriers in the US.

Under the new plan customers does not require to have two-year commitments of stay with the Verizon[NYSE:VZ]. However, in any other way they might stay with the carrier as monthly installments of the phone stretch for two years.

The move may end up subsidies completely for new customers.

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Ken Wells