WIRELESS GIANT SHAKES UP INDUSTRY …
|| By FITSNEWS || America’s largest wireless provider threw the marketplace for a loop late last week – eliminating its traditional two-year service agreements (and those big discounts customers receive when they upgrade to new smart phones or tablets).
Is this good news?
Yes, according to Fortune’s Kevin Fitchard – who hailed the company’s decision as the “death of the cellphone contract era.”
“Verizon’s new pricing plans mean phone contracts and subsidies are now taking their last dying breaths, which is great news for consumers,” Fitchard wrote. “By getting rid of cellphone contracts Verizon will give consumers much more flexibility in choosing a phone, drive down service plan costs, and encourage a much more fluid phone market that will allow customers the opportunity to move between mobile operators.”
Wait … what did Verizon do, exactly?
Well, beginning August 13 new customers will choose between one of four pricing plans regarding the data they share over the company’s network: Small ($30/month for 1GB of shareable data), Medium ($45/month for 3GB of shareable data), Large($60/month for 6GB of shareable data), and X-Large ($80/month for 12GB of shareable data).
That’s in addition to a $20 monthly charge per line (down from the network’s current $40 per line fee).
Add it up and you’re looking at roughly $100 per month if you’re sharing 6GB of data over two lines or $160 if you’re sharing 12GB of data over four lines – before taxes and fees, naturally.
Oh, and you can purchase additional data if you need it …
So … what’s the catch? Well, Verizon is no longer offering discounts on new iPhones, Droids or phablets … just in time for the launch of Apple’s latest iPhone device, huh?
“All new customers, and existing customers who want to move to the new plan, will buy or upgrade to new smartphones using Verizon’s device payment option, formerly known as Verizon Edge, or by paying the retail price,” the company said in a press release.
In other words if you’re a new Verizon customer – or an existing customer who wants to change your plan to take advantage of its cheaper rates – you’re going to have to pay full freight for your new device (or put it on layaway).
Basically Verizon is changing how it charges customers … not necessarily how much.
Fitchard maintains this is a good thing, though …
“By separating the cost of the phone from the cost of the service, we’ll wind up paying more for our devices, but service plan prices will come down,” he wrote. “Most importantly, we’ll be able to see exactly what we’re paying for.”
30 comments
You can thank companies like Straight Talk for forwarding the assault on Big Cell.
Competition in the marketplace, NOT GOVERNMENT, is the Big Equalizer.
It’s why you libertarians and liberals are shitting all over yourself because of Trump. He knows how to improve the product, and he’s doing it. It’s why you want him GONE!!!!
But competition will topple the FILTHY Democrats, who have a monopoly on corruption. No wonder you’re scared as hell. Good for ya.
Straight Talk? Lulz! It must be interesting to see how you talk into your Walmart phone.
Verizon couldn’t give a shit about some low tier option, they are more worried about their actual competition that eats into their market share. T-Mobile did away with this crap and shot up in the market, now everyone else is playing catch up.
Why would you have a contract phone today?
Is Straight Talk a homophobic company? What a way to alienate gay friends or family members. Just get them a Straight Talk phone.
http://i.imgur.com/668nf6E.png – so my bill won’t look like this anymore?
1-900?
no just a lot of phones, I give some of my employees cell phones.
Will this affect my Obama-phone plan?
Hey, don’t take credit away from Reagan!
I got one.It came with my free Obamacare and I am a NON citizen.
I got to sign up for that Obamacare. But they ain’t making it easy. They trying to make me come up w/ a username and password. I blame the Republicans for making it so hard.
PS: I am a NON citizen, too. But I voted, 15 times for Obama.
I keep waiting for FlipTango to get the hang of this stuff but I’m still sorely disappointed every time.
You people HATE reality, and you react stupidly to it.
You better hope the media does not become totally irrelevant. Your ass is cooked if you cannot lie, or have them do it for you.
No, we just get tired of hearing your butt cheeks flap uselessly here.
No, you’ll get to upgrade your phone every 30-days or whenever you like… whatever comes first.
That was good. (Golf clap)
They fucking copied T-Mobile, that’s what.
$45 NON-contract phone from Verizon and I have UNLIMITED talk and text and internet.
I’m guessing a flip phone with giant buttons for old dudes… amirite?
Come now, you also will age, there is nothing wrong with a flip phone. Some of us don’t need or want to be connected 24/7.
Yep! Here we go, silver club: https://www.jitterbugdirect.com/
Somehow, I have a feeling they will figure a way to screw the customer on this deal. VZW used to be first class with regard, not only to the network, but taking care of the customer with things like the phone and accessories. Their intense corporate greed has grown and grown to the point that they absolutely suck assholes with regards to handsets and accessories.
I still have one of those unlimited data plans they discontinued. If I ever lose that, I’ll probably switch to another company
FWIW, I had the unlimited data up until a few months ago. I put off the switch because I was convinced that I needed unlimited. You should check and see how much data you’re actually using…I switched to an 8GB shared plan which was more than enough data for us, and cut my bill in half. Granted, I have Wi-Fi at home and at work and don’t do things like Netflix on my phone when not on Wi-Fi.
Before my computer died, I was averaging 33-35 Gig a month. Now, probably around 5-8. Whenever I get another computer, it will really hurt if I don’t have that unlimited plan.
I’m in the same boat. They told me that the next time I change phones, I will have to choose another data plan.
You may want to speak to a customer service supervisor or maybe someone in “customer retention”. The way it has been explained to me, if you pay full price for your next phone, you should be able to keep your unlimited plan. Supposedly you only lose your phone if you take the discount on your new phone that comes with a new plan.
That is correct..
Thanks!
Who is they? Your old plan will be there if you want it. Your not forced to go any where or to any new plans.
Probably time to sell AAPL.