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Verizon Confirms It's Killing Two-Year Contracts

Verizon has confirmed rumors that the company is killing off two-year contracts for wireless subscribers for good. We had already reported on the leaks that suggested Verizon was killing off longer contracts, alongside of the company's ramped up crack down on its remaining unlimited data users. But Verizon has since confirmed the changes, which officially began January 5. Verizon, like most wireless carriers, had already been moving away from contracts in fits and starts.

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Verizon stopped offering two-year service contracts to new customers last August, though continued to offer them to existing customers who wanted them.

Moving forward, all Verizon Wireless customers must pay off their devices either completely, or via equipment installment plans (EIP).

It's a notable shift for an industry that just four years ago was still focused on subsidized smartphones, where users ponied up a down payment (usually $200), but then found the remaining cost of the device rolled into their service price. Ultimately T-Mobile decided to break the mold by ditching the idea, and the other three wireless carriers came stumbling along behind, at various levels of enthusiasm.

Ultimately large wireless carriers like Verizon and AT&T have wound up loving the idea, as it ultimately forces customers to pay for these devices in full.

In addition to confirming the shift away from two-year contracts, Verizon has also formally confirmed that it has bumped its activation and device upgrade fees from $20 to $30.


Most recommended from 33 comments


Os
join:2011-01-26
US

15 recommendations

Os

Member

Screwing the Customer

I love how the companies market this as you have "freedom" when the 2-year contract ETF was cheaper than what these phones are.

So if you want to leave, now you owe them the balance of $700 instead of $350.

None of these "installment" plans benefit the consumer. Just the carrier. You don't have any more freedom, just a greater expense.

And then the phone companies (Apple and Samsung) wonder why sales of their flagship devices are dropping. People aren't upgrading now that the real cost of these phones reveal themselves.

srtdodge05
Premium Member
join:2011-10-16
Ypsilanti, MI

7 recommendations

srtdodge05

Premium Member

Nothing new

Nothing new to report. Pay more and get less. If you start new service or upgrade it should be free online.