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Verizon to Soon Offer Phone Payment Plans
Pay Off Phones Over One Year Under New Program
by Karl Bode 09:02AM Monday Apr 15 2013
Leaked documents suggest that Verizon may be following on T-Mobile's heels when it comes to device subsidies sooner than we thought. According to the documents obtained by Droid Life, Verizon's new "Device Payment Plan" will launch on April 21 and allow some customers to pay off their phones over a twelve-month period. Verizon quietly acknowledged the launch of the plan last week when they announced they'll be extending their phone upgrade program cycle to a full 24 months. As part of their recently announced "UnCarrier" strategy, T-Mobile has started offering devices like the iPhone 5 for $99 down, and $20 per month for 24 months.

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Packeteers
Premium
join:2005-06-18
Forest Hills, NY
kudos:1

UnLocked Phone Legislation

my guess is Verizon is hedging their bets. if they can't prevents us from unlocking our phones by law and using them elsewhere, then they would want to recope as much of the phone cost as possible.

hey hey hey

@charter.com

Re: UnLocked Phone Legislation

said by Packeteers:

my guess is Verizon is hedging their bets. if they can't prevents us from unlocking our phones by law and using them elsewhere, then they would want to recope as much of the phone cost as possible.

Well unless you do not plan on actually using your Verizon phone for calls and texting then sure you can take it elsewhere. Sorry but calls and texting still use CMDA which are useless on any GSM network. Even on Sprint's CDMA network Verizon uses a different frequency so once again uses. So basically you phone would be just a mini tablet in which case GET A TABLET.

I'm not sure why the pro-unlocked phone supporters don't get this point yet.
bn1221

join:2009-04-29
Cortland, NY

Re: UnLocked Phone Legislation

Well, not entirely true. You can take a Vz Iphone 5 to a a GSM country with a prepaid SIM (India, Ghana) and it works well

hey hey hey

@charter.com

Re: UnLocked Phone Legislation

said by bn1221:

Well, not entirely true. You can take a Vz Iphone 5 to a a GSM country with a prepaid SIM (India, Ghana) and it works well

I would hazard a guess that the VAST majority would want to use their phones in the US. And not everyone wants Apple's overpriced crap either.
sandman_1

join:2011-04-23
11111
WTF are you talking about? You can text and call from a Sprint phone while roaming on Verizon and use 3g data. Sprint have roaming agreements with Verizon and cell carriers like Cricket so that their phones will work on their frequencies. I flashed my EVO 3D over to Cricket and it worked fine: 3g, text, and calls. While with Sprint, there were places where you could only get Verizon coverage and their 3G. Also there were PRLs where you could roam 24/7 on Verizon. Although 6 months down the line, you may get a call from Sprint terminating their contract with you due to excessive roaming.
rradina

join:2000-08-08
Chesterfield, MO

Verizon post-paid price drop?

Formerly, a two-year post-paid plan would get you the latest top-of-the-line phone for $199 or $299. What happens to the cost of the post-paid plan prices if we're now paying for our phones outright?

LightS
Premium
join:2005-12-17
Greenville, TX

Re: Verizon post-paid price drop?

Nothing happens. They stay high.

Phone price is recuperated by the carrier by the ETF.
elefante72

join:2010-12-03
East Amherst, NY

Re: Verizon post-paid price drop?

You are paying for it regardless, the questions are:

1. If they go to one year and the fee is in there, do you still need a contract? Having a 2 year contract is now crazy if you are paying off said device which was the "idea"
2. Do they lower the rates? I doubt they will on data, but if they don't this is a killer because you are paying the subsidy rate, plus an inflated phone price (they dont pay anywhere near $650 for a phone), plus any interest rate crap they would pile on.
3. Owning your phone is great regardless, however they need to unlock after you pay off, no exceptions.
4. If you are paying off your phone and it's out there, if you want to go global you shouldn't need to pay the carrier tax to go overseas (see 3).

The carriers hate to carry these phones on the books. The biggest thing that will happen is that people will stop paying $650 for a $200 phone, and margins will collapse which is great for the consumer.

I can't see why one would pay $650 for an iphone when you can get a Nexus 4 for $350 (other than carrier avail), but you will see Apple need to plug that market gap. A vast majority of people are not going to pony up for that fee once they start seeing pricing transparency.
ptbarnett

join:2002-09-30
Lewisville, TX

Re: Verizon post-paid price drop?

said by elefante72:

2. Do they lower the rates? I doubt they will on data, but if they don't this is a killer because you are paying the subsidy rate, plus an inflated phone price (they dont pay anywhere near $650 for a phone), plus any interest rate crap they would pile on.

This is the killer question for me.

I'd happily pay full price upfront for an unlocked iPhone. I don't need to pay $25/month, or whatever. But, I am NOT going to pay full price AND pay a monthly fee that includes the implied cost of a 2-year contract subsidy.

T-Mobile gets this. Verizon appears to be figuring it out. AT&T will have to get their act together, or they will be left behind.

I'm currently planning a extended trip to Europe next summer, and am hanging on to an iPhone 4S that will be out of contract this year. We'll buy a pre-paid SIM with a data plan, so we can use it for maps, tethering, etc.

Topevoli

@comcastbusiness.net

Re: Verizon post-paid price drop?

Prepaid Verizon Service. $55/mo unlimited Text, calling and 2GB of Data. Google "Pageplus". Even has a monthly auto renew so you don't have to worry about losing service if you forget to re-up.

Buy an Iphone (FYI - not technically supported for this plan, do your own research!) and activate it on page plus. Tell Verizon they can take their $100+ a month contract and pound sand.
itguy05

join:2005-06-17
Carlisle, PA

I can't see why one would pay $650 for an iphone when you can get a Nexus 4 for $350 (other than carrier avail), but you will see Apple need to plug that market gap. A vast majority of people are not going to pony up for that fee once they start seeing pricing transparency.

Using that logic who would pay $699 for the Galaxy S3? That's it's full retail price.

And the iPhone 5 is still one of the top performing phones:
»www.anandtech.com/show/6324/the-···-preview

Outside of the HTC One X it's also got one of the best displays:
»www.displaysearchblog.com/2012/1···-design/

The Galaxy S4 will probably be faster with the iPhone 5s being faster and the Galaxy S5 will be faster, etc.
clone

join:2000-12-11
Portage, IN
Reviews:
·T-Mobile US
I keep seeing folks post this, and I'm not sure they know what ETF means. It means "Early Termination Fee". Obviously, if you don't terminate early (before your contract term is completed), you don't pay the ETF.

Therefore, the cost of the subsidy was recovered by the carrier through the cost of the service plan over 24 months. They didn't magically lose the $350-450 break they gave you on the phone.

That being said, one can argue that carriers aren't actually paying "full retail" for the phone (ie. I want to buy a new phone without subsidy and I am charged $649, the carrier is probably paying far less for the device), and one would probably be correct. But even if they are only subsidizing $200-$250, they are still making that money back.

At any rate, yes, the ETF protects the carriers investment in a handset subsidy should someone choose to end their service before the end of the contract period. This is why there are graduated ETF scales depending on how many months of the contract you have fulfilled. However, the cost of actually making the subsidy back IS by all means rolled into the cost of monthly postpaid service plan. This is why you don't have to pay an ETF if you fulfill your contract.

Not that I think Verizon or anyone else is really going to give anyone a break on the cost of the service plan if they buy their own handsets, but if the cost of recovering the subsidy isn't baked into the monthly service price, where exactly is it coming from?

LightS
Premium
join:2005-12-17
Greenville, TX

Re: Verizon post-paid price drop?

I'm not saying that we aren't indirectly paying for it.

I'm just saying... why renew a contract if you aren't getting a subsidized phone? There is literally no reason to unless you're getting a subsidized phone. That's what I was getting at..
nitros22

join:2004-11-03
Chicago, IL
This is in no way true for high end smart phones. Plus it also depends how far into their contract they are in.

LightS
Premium
join:2005-12-17
Greenville, TX

Re: Verizon post-paid price drop?

said by nitros22:

This is in no way true for high end smart phones. Plus it also depends how far into their contract they are in.

I don't follow? Unless I misread?
nitros22

join:2004-11-03
Chicago, IL

Re: Verizon post-paid price drop?

In Example. You buy an iPhone 5 16GB for $199.00 You sign a new contract. You keep the service for 6 month's then pay the ETF at about 300.00 that's the reduced price of the ETF. Verizon still loses out a maybe 1 to 200 bucks as the phone is sold to Verizon at full price unlike the android phones that are purchased in bulk at discounted rates but only for possibly 50.00 to 100.00 per handset. The ETF does not always recoup the cost of the phone. Now if the person was 4 months away from the end of the contract then in that case the ETF would recoup the remaining cost. its all about what phone and how far into the contract the person decides to bail.

LightS
Premium
join:2005-12-17
Greenville, TX

Re: Verizon post-paid price drop?

Ahhhh, okay, I misread your statement. That makes sense & I have realized that.
itguy05

join:2005-06-17
Carlisle, PA
said by nitros22:

In Example. You buy an iPhone 5 16GB for $199.00 You sign a new contract. You keep the service for 6 month's then pay the ETF at about 300.00 that's the reduced price of the ETF. Verizon still loses out a maybe 1 to 200 bucks as the phone is sold to Verizon at full price unlike the android phones that are purchased in bulk at discounted rates but only for possibly 50.00 to 100.00 per handset.

Interesting assertion. Got a link that shows Verizon pays full price for iPhones and $100 for, say Galaxy S3's? Cause it's not in their financials.
nitros22

join:2004-11-03
Chicago, IL
I didn't say they get them for 100, I said they get them discounted by 50 to 100 per handset from the Msrp but they are still paying a pretty penny for those devices. Same with any other wireless carrier.

IowaCowboy
Iowa native
Premium
join:2010-10-16
Springfield, MA
kudos:1

Maybe I could upgrade more often

Maybe I could upgrade once a year like when Apple releases a new iPhone.

hey hey hey

@charter.com

Not quite Dish

"Dish/Sprint merger will create the only company that can offer customers a convenient, fully integrated, nationwide bundle of in- and out-of-home video, broadband and voice services," Ergen said in a statement

Except many of Dish's customers are in rural areas where Sprint doesn't provide service.
Expand your moderator at work

hey hey hey

@charter.com

It's simple folks

Say you're out of contract and you don't want to be on contract. This would be a good way of getting a ne phone without having to sign a contract. It should be obvious like T-Mobile if you want to leave before you pay of the phone well you're going to have to pay off the phone.

Also for those that want to upgrade before their regular upgrade date they can get that sparkly new phone without having to come up with $600 upfront.
cferro

join:2003-07-27
Jersey City, NJ

Re: It's simple folks

The phone company is out to make a lot of money. During the Great Depression, it was a chicken in every pot. Today, it is a smart phone in every pocket or purse.

morbo
Complete Your Transaction

join:2002-01-22
00000

Is T-Mobile's strategy working? I think it must be working

T-Mobile's changes must be working for big red to offer this so soon.

hey hey hey

@charter.com

Re: Is T-Mobile's strategy working? I think it must be working

said by morbo:

T-Mobile's changes must be working for big red to offer this so soon.

Yes because a big company like Verizon just comes up with ideas like this and implements them within a week. Verizon is not in the least bit worried about T-Moible. Hell T-Mobile basically cedes 35% of the nation to Verizon and at&t.
OwlSaver
OwlSaver
Premium
join:2005-01-30
Berwyn, PA

I will take advantage of this, if..

If Verizon has a lower rate for people out of contract, I would happily take this route. My guess is they are keeping the term short (i.e., 1 year) so that they do not have to reduce the rate too much. I winder if there will actually be three tiers:

-In contract and subsidized phone
-In contract and own phone
-Out of contract and own phone

This pricing could get chaotic - not that it is simple today.

hey hey hey

@charter.com

Re: I will take advantage of this, if..

said by OwlSaver:

If Verizon has a lower rate for people out of contract, I would happily take this route. My guess is they are keeping the term short (i.e., 1 year) so that they do not have to reduce the rate too much. I winder if there will actually be three tiers:

-In contract and subsidized phone
-In contract and own phone
-Out of contract and own phone

This pricing could get chaotic - not that it is simple today.

Any price reductions would probably only be with Share Everything plans.

Pirate515
Premium
join:2001-01-22
Brooklyn, NY

Re: I will take advantage of this, if..

said by hey hey hey :

Any price reductions would probably only be with Share Everything plans.

Yep, I see the data bucket charges staying the same; however, they would probably ease up on the access charges. Currently, you are paying $40 a month per smartphone, times 24 months that's $960. Plus the subsidized price on top of that. Using iPhone as an example, they are subsidizing $450 (the price difference between any given unit and the exact same unit unlocked). Take that amount away from $960 then divide by 24, you end up with $21.25. So I see them lowering the access charge to something between $20-25 a month for those who would pay for the phone upfront.
--
Ask me no questions, and I'll tell you no lies.
A MESSAGE to the RIAA and the MPAA: You shouldn't wound what you can't kill.
If the opposite of pro is con, then the opposite of progress is Congress.
Beans

join:2005-07-16
united state

Att

I like to see how att will follow suit.