Biz

What Did Verizon Just Do?

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…

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.”

***

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30 comments

Trump doing same to Democrats August 11, 2015 at 12:04 pm

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.

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Farting Into The Microphone August 11, 2015 at 12:29 pm

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.

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flip August 11, 2015 at 12:32 pm

Why would you have a contract phone today?

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CorruptionInColumbia August 11, 2015 at 5:20 pm

Is Straight Talk a homophobic company? What a way to alienate gay friends or family members. Just get them a Straight Talk phone.

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Karl August 11, 2015 at 12:04 pm

http://i.imgur.com/668nf6E.png – so my bill won’t look like this anymore?

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Talk Dirty To Me August 11, 2015 at 12:16 pm

1-900?

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Karl August 11, 2015 at 1:40 pm

no just a lot of phones, I give some of my employees cell phones.

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Democrat Voter August 11, 2015 at 12:17 pm

Will this affect my Obama-phone plan?

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Reaganphone August 11, 2015 at 12:23 pm

Hey, don’t take credit away from Reagan!

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Ms.Freeloader (rockysmominlaw) August 11, 2015 at 12:31 pm

I got one.It came with my free Obamacare and I am a NON citizen.

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Democrat Voter August 11, 2015 at 12:36 pm

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.

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Obvious Troll August 11, 2015 at 12:37 pm

I keep waiting for FlipTango to get the hang of this stuff but I’m still sorely disappointed every time.

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Obvious Truth August 11, 2015 at 12:45 pm

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.

Captain Obvious August 11, 2015 at 12:50 pm

No, we just get tired of hearing your butt cheeks flap uselessly here.

Squishy123 August 11, 2015 at 12:50 pm

No, you’ll get to upgrade your phone every 30-days or whenever you like… whatever comes first.

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Nölff August 11, 2015 at 2:54 pm

That was good. (Golf clap)

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What Did Verizon Do? August 11, 2015 at 12:24 pm

They fucking copied T-Mobile, that’s what.

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flip August 11, 2015 at 12:27 pm

$45 NON-contract phone from Verizon and I have UNLIMITED talk and text and internet.

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mamatiger92 August 11, 2015 at 2:24 pm

I’m guessing a flip phone with giant buttons for old dudes… amirite?

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idcydm August 11, 2015 at 2:39 pm

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.

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Nölff August 11, 2015 at 2:56 pm

Yep! Here we go, silver club: https://www.jitterbugdirect.com/

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CorruptionInColumbia August 11, 2015 at 1:38 pm

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

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Can you hear me now? August 11, 2015 at 1:46 pm

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.

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CorruptionInColumbia August 11, 2015 at 5:18 pm

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.

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mamatiger92 August 11, 2015 at 3:08 pm

I’m in the same boat. They told me that the next time I change phones, I will have to choose another data plan.

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CorruptionInColumbia August 11, 2015 at 5:15 pm

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.

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scyankee August 12, 2015 at 12:44 am

That is correct..

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mamatiger92 August 12, 2015 at 8:17 am

Thanks!

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scyankee August 12, 2015 at 12:43 am

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.

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What's my payment August 12, 2015 at 8:17 am

Probably time to sell AAPL.

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