There’s going to be a change coming to your Verizon bill in the coming months – and it might not be something you will like. Verizon is going to stop offering discounts to people who sign up for a two-year service agreement. The move was made so that people could understand what they are paying for, but in the end they will likely end up paying more.
Almost every other wireless carrier has been trying to wean their customers off of these subsidies, according to the Washington Post. At Verizon, a $649 iPhone 6 goes for the low cost of $200, if they sign up for the contract. Now, they are trying to encourage users to buy the phones outright, but instead of putting all of the money up front, they pay smaller, monthly fees until they own the phone. A few other top carrier, including Sprint, also have the option of leasing the phone, but then there is no resale value at all. Verizon and T-Mobile, who are the top two providers, are both ending subsidies.
For those users who already have a contract and plan, they will be able to stay on them. There will be restrictions, but Verizon hasn’t put them into writing just yet. Though the company is doing away with 2 year plans, the new payment plans do stretch for exactly two years.
The new plans will start on August 13 and will drop prices about $20 a month for users. Customers will no longer get the subsidies on the phone, valued at about $19 for an iPhone 6. But there are variations, so some will pay a bit more, others a bit less.
Verizon will also be changing up their data plans, which will now range from “small” at 1 gigabyte to “x-large” at 12 gigabytes, all sharable under family plans.
Originally posted in i4u News