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More Details on Verizon’s New Upgrade Policy

Just over an hour ago, some depressing news hit the interwebs concerning Verizon’s new upgrade policy that will go into affect on January 16th and we’ve now received even deeper details.  This isn’t going to make anyone any happier, but as always, we want you to know as much as possible so that you can make the best decision come upgrade time on your current contract.

5 things to know:

1.  All customers who activate / upgrade on a qualifying plan prior to January 16th, 2011 are enrolled in NE2 (New Every 2) and eligible to use the NE2 discount for up to six months from the date they become eligible.

2.  Any customer who uses an NE2 credit or Annual Upgrade after  January 16, 2011 will no longer be eligible for either program.  On March 6, 2011, VZW systems will be updated to reflect this.

3.  All customers who exercise the NE2 or Annual Upgrade option on or after January 16th will receive a letter notifying them that it was their last NE2 or Annual Upgrade.

4.  Business customers continue to receive either the two-year corporate matrix tiered device pricing or two-year retail device pricing per contract.

5.  Customers will now be eligible for promotional pricing after 20 months on a 2-year contract and 10 months on a 1-year contract.

We are also hearing that the $100 credit that was included in the current NE2 deal will no longer be provided.  It looks like promotional pricing is all you will get when eligible for an upgrade.  We should also point out that more and more phones are offered for free these days, but still.

Cheers D and money!

  • Anonymous

    I’m confused by the last statement “We are also hearing that the $100 credit that was included in the current NE2 deal will no longer be provided. It looks like promotional pricing is all you will get when eligible for an upgrade.”

    Does this mean that if you were eligible for a $100 credit as part of NE2 that you won’t get it after January 16th even though point #2 indicates that you can still use your NE2 credit after January 16th?

    Like someone else pointed out the NE2 credits are now $30 or $50 depending on the monthly cost of your calling plan but maybe some people were grandfathered in with a $100.

  • J Dub

    How will this affect those of us who, when eligible for upgrade, use sites like Wirefly and Letstalk? You get much better deals through those sites now anyways.

  • DBEvans

    Hmmm …

    Regarding: “All customers who activate / upgrade on a qualifying plan prior to January 16th, 2011 are enrolled in NE2 (New Every 2) and eligible to use the NE2 discount for up to six months from the date they become eligible.”

    … what if the 6-months from date of being eligible was last month? (I know, but I was temporarilly “employment-challenged”, so stuck it out with my old phone longer than I would normally). Does that mean Jan 16th is now my drop-dead date to use my NE2 credit? That sucks. I’ll need to ask a rep if it can be extended to 6-months from when the rules were changed.

  • Bill

    I must be missing something. Why would VZW give a rat’s ass if I wanted to upgrade every week. As long as I extended my contract every time I don’t see why it is such a problem all the time. Got rid of Strom 1 (stop laughing) for a X and now I want this Thunderbolt phone and I cant get it. Pisses me off.

    • Anonymous

      You can get a new phone whenever you like, you just have to pay for it. Verizon subsidizes some of the cost of the phone contingent on you paying for their services for a fixed amount of time. If Verizon allowed you to upgrade your phone at a discounted price whenever you felt like it, they would lose big $$ because they would be continually subsidizing your phone and not getting the full contract term to recuperate the loss. But nothing is stopping you from walking into the store and paying full price for the phone of your choice, whenever you want.

      • Bill

        To recoup the loss of what? If you extended the contract by 2 years every time you renewed, they would get their money that way. You don’t really think that any of these new smartphones are worth the retail price, do you? They make their money on the contract, not the phone.

        • http://www.facebook.com/profile.php?id=1143030578 Curtis Hoffman

          So you’re saying that you would add two more years to your contract when your only 6 months into it for a new phone? wow…….

          • Bill

            Of course you add two more years..new phone=new contract. What’s wrong with that

          • http://perpetualn00b.tumblr.com quiklives

            What he means is that the two years would start fresh each time he got a new phone, for a total in your example of two and a half years, not that two additional years would be tacked onto the end for a total of three and a half years.

          • DBK

            He was using that as an example, Mr. Literal. Plus, it’s more like 10-13 months, based on the contract.

        • Anonymous

          pretend for a minute that that Droid x you’re sporting cost vzw 500 dollars to buy from motorola to put on their shelf(thats right, vzw has to pay the manufacturers for the product, the manufacturer doesnt just give the carriers product for free), and they sell it to you for 200, if you upgrade next week they’re out that 300 dollars, whereas if you keep the phone the entire 2 years that you contracted for, they’ll recoup that 300 dollars in the profits they make from you and your 2 years of contract service. Thats why they give you a discount on buying a phone with a 1 or 2 year contract.

        • Anonymous

          Exactly… if you get a Droid X at a discounted price with a new contract, the assumption is that over the life of the contract (say, 2-yrs), that discount will be made up. But, say 6 months later a cooler phone comes out and you want it so you sign up for a new 2-yr contract, this new contract helps pay for the discount on your new phone, it doesn’t make up for the discount you got on your DX, that is lost money to Verizon. Consequently, they restrict how often you can upgrade your phone for a discounted price.

          • http://www.facebook.com/profile.php?id=1049110242 Nathan Carmack

            Not if you trade the phone in and they resell it to someone else as a referb for $50 less than a new one. They should want you upgrade as frequently as possible, to constantly have you on a new 2 year deal, showing off their latest greatest phone. Anyone who would want to pay $200 every time a new phone comes out is obviously going to be a big influencer. If they let you trade in your phone and they re-sell it, how are they out anything. It makes no sense.

          • DBK

            You do realize how uncommon trade-ins are, right? And how often the refurbs are out of stock? There isn’t as much profit there as you may think and no where near enough to balance out new phone sales. This new policy, as disagreeing as it may be, ensures that they are able to “properly” profit from phone sales regardless of the discounts.

    • NKTizzle

      This doesn’t affect people like you. This affects those that want to upgrade early at a discounted price.

  • Jawshua

    So I don’t get it? I’ve been a customer forever and now after that date I can no longer get a new phone every two years? Wouldn’t that just make a huge decline with them having new phone sales? So when can I get a new phone, never? Verizon is so stupid, if that’s the case I’ll just change carriers. Why would you take away from your customers it makes no sense, but once again I’m sure it’s the almighty dollar that is driving their greed. So stupid Verizon!

    • http://www.facebook.com/profile.php?id=1143030578 Curtis Hoffman

      This is how it will work, at the 20 month period of your 2 year contract You can pick a new phone but you won’t get 100 dollars off the price of the phone. So let’s say your at the 20 month mark and you want a newer phone that costs 200 dollars on a 2 year contract, that’s what you’ll pay.

  • Alphabets13

    so if i use my annual upgrade i have left before jan 16th….i will still be eligible for one more annual upgrade on that line?

    • DBK

      No. That only works with the NE2. The annual upgrade is being discontinued. If you use your annual upgrade, whenever you use it, it will be your last one.

  • Iveyjohnc

    Does this mean that VZW will use the added profits to bring LTE to the rest of us? I plan on sticking with my DX until we get LTE signal, maybe by then a LTE Droid will be available. Switching to T Mobile and investing in a Nexus S with a nice slice of Gingerbread is getting more enticing.

  • The350zWolf

    Perhaps the answer is to flash my OG droid and use Cricket ;^)

  • Random

    I wouldn’t be surprised if big red did this to convert everyone to the thunderbolt as a preemptive strike against the iPhone, to boost sales. It could be good, to see a lot of OG owners upgrade to the thunderbolt as a wide user base, but what if its not made of unicorn poop and rainbows as advertised? Risky business vzw…

  • Anonymous

    So I am on my 13 mo of my current contract, should just upgrade now before the 16 to still take advantage of my early upgrade. or Just lose it and wait for the 4g phone that will come out soon and do a 1yr?? Any advice from the group :)

    • Gee

      Just remember 1yr contract pricing of phones is HIGHER.

      • Anonymous

        Yeah, I am just thinking how can make this work, I am already in the window
        for an upgrade but I want a 4g dual core thats not going to come out till
        the end of January proabably ARAGGGGH

    • DBK

      If you are talking about the annual upgrade, then you can use it whenever, but it will be the last one. If you are talking about the NE2, then if you use it before the 16th, you can get one more, but if you use it after the 16th then that will also be your last one. Hope that helped.

      • Anonymous

        Thanks man for the advice :) It helped

        • DBK

          Glad I could be of assistance. :)

  • http://twitter.com/myermenson Michael Yermenson
  • The350zWolf

    Well, as always we will follow the path of least resistance and maximum personal gain -please read as the least the corporate engine screws me-

    I’ll personally will let the clock wind down on my contract, get a Nexus S or similar phone and hop over to Sprint on a year contract, then let that contract wind down and then go back and get a new one year verizon contract with a new phone and repeat the cycle. What will make this less painful is having a Google number that does not change. I don’t mind switching between Sprint and Verizon every year.

  • Anonymous

    Please don’t take this the wrong way, but is this grounds to break my contract with no etf?

    • NKTizzle

      No.

  • Booboolala2000

    If this is the way they are going, then they had better lay off the bloatware. With other providers offering a more pure Google experience I will bolt in a heartbeat. I think it’s time to cancel a couple of extra lines.

  • Gee

    How is this a surprise? Verizon has already done away with the 100$ credit an favor of the 50$. Its not like any offer carrier offer’s and upgrade discount, for that matter the NE2 credit was always at the 20month point.

  • Gee

    How is this a surprise? Verizon has already done away with the 100$ credit an favor of the 50$. Its not like any offer carrier offer’s and upgrade discount, for that matter the NE2 credit was always at the 20month point.

  • Octotron

    So at what point am I able to opt out of my contract for breach of contract?

  • Octotron

    So at what point am I able to opt out of my contract for breach of contract?

    • NKTizzle

      Ummm, if they breach your contract. That’s when.

      I don’t see how this breaches your contract though…

    • NKTizzle

      Ummm, if they breach your contract. That’s when.

      I don’t see how this breaches your contract though…

    • Octotron

      2. Any customer who uses an NE2 credit or Annual Upgrade after January 16, 2011 will no longer be eligible for either program. On March 6, 2011, VZW systems will be updated to reflect this.

      If I use my upgrade in February on my 3rd line and it voids out my ne2 on my main line, it would void out my girlfriends upgrade as well because we are on the same account according to that language. They do not recognize individual people on a family plan and only the main account holder, who happens to be my girlfriend.. err fiancée.

      The question would then be, does the consist of a violation of my current contract or a break of good faith within the design of the contract? I sign up for the 2 year contracts because of the pricing and ability to upgrade these lines.

  • NewsWorthy

    I thought the logic behind 2 year contracts was to keep the customers as long as you legally can. Then right before the contract ends, entice them into locking in for another 2 years. This change in policy would dictate that people like myself would opt for the 1 year contract so that we can upgrade every 10 months. What that also does is shorten the period of time I am locked into a contract and thereby defeat the whole purpose of what they set out to do in the first place. I am sure there is a great explanation for why this is being done but thus far, I haven’t heard it. Not that I intend to leave Verizon anytime soon. Just something to consider. You know, my $.02, not sure what it’s worth to you…
    ~ Slim ~

  • NewsWorthy

    I thought the logic behind 2 year contracts was to keep the customers as long as you legally can. Then right before the contract ends, entice them into locking in for another 2 years. This change in policy would dictate that people like myself would opt for the 1 year contract so that we can upgrade every 10 months. What that also does is shorten the period of time I am locked into a contract and thereby defeat the whole purpose of what they set out to do in the first place. I am sure there is a great explanation for why this is being done but thus far, I haven’t heard it. Not that I intend to leave Verizon anytime soon. Just something to consider. You know, my $.02, not sure what it’s worth to you…
    ~ Slim ~

    • http://twitter.com/pcriz Perry Meg

      But with a one year plan you pay more for your phone…

      • NewsWorthy

        Yes, this is true but I am more than willing to pay that extra so that I can upgrade again in 10 months. At the rate technology is moving, I would pay to be able to upgrade every 6 months but that may be overdoing it.
        ~ Slim ~

        • http://twitter.com/pcriz Perry Meg

          I agree, someone else made the point that not too long ago we were paying 250 for phones after two year upgrades so I could deal with a yearly contract for a little more money.

    • http://twitter.com/pcriz Perry Meg

      But with a one year plan you pay more for your phone…

  • Bthomasltd

    This sounds like a business decision whether good or not. Verizon is preparing everyone for a change in their lineup. The iPhone. It will change their business financially and dynamically. March shall come around and many folks will need or want upgrades. Guess what will be announced and released in March, the start of the 2nd quarter. The iPhone! They are just preparing for a big year. No excuses It still sucks.

  • Bthomasltd

    This sounds like a business decision whether good or not. Verizon is preparing everyone for a change in their lineup. The iPhone. It will change their business financially and dynamically. March shall come around and many folks will need or want upgrades. Guess what will be announced and released in March, the start of the 2nd quarter. The iPhone! They are just preparing for a big year. No excuses It still sucks.

  • Kaufkin

    even given the annoying info above, let’s face it….

    1. Verizon is still the best service for not sharing your personal info. they tend to sue instead. remember when the govt demanded our personal info? what is the only carrier that didn’t immediately roll over? Hmmmm….
    2. thanks to our Dev’s out there, your phone is now more usefull, longer. My D1 isn’t as good as the DX for the latest games, but it does 90% of what I need it to do just fine, and thanks to Cyan / Pete / etc, we’ll have 2.2 a LOT faster then any “official” release… and the usefull bits of Honeycomb when that’s released too.

    so annoying? Yeah. End of the world? Nope. Switch to Cyan / Bugless / flavor of choice, and extend your life.

  • Kaufkin

    even given the annoying info above, let’s face it….

    1. Verizon is still the best service for not sharing your personal info. they tend to sue instead. remember when the govt demanded our personal info? what is the only carrier that didn’t immediately roll over? Hmmmm….
    2. thanks to our Dev’s out there, your phone is now more usefull, longer. My D1 isn’t as good as the DX for the latest games, but it does 90% of what I need it to do just fine, and thanks to Cyan / Pete / etc, we’ll have 2.2 a LOT faster then any “official” release… and the usefull bits of Honeycomb when that’s released too.

    so annoying? Yeah. End of the world? Nope. Switch to Cyan / Bugless / flavor of choice, and extend your life.

    • Mr.Joe

      Can I get an amen?!

      • http://twitter.com/LiveInTheDream Lit Dreams

        rAmen.

    • The350zWolf

      I will agree with your first statement, but I’m not quite on board with your #2. You are right that the phone’s longevity extension is in great part to the dev’s BUT NOT verizon or motorola for that matter. If it were for VZW/MOTO, we would be stuck with their slow upgrades and full of bloatware and blur. Verizon’s network is indeed the best and I don’t mind paying for that, I just want to be able to upgrade accordingly to take full advantage of their network without mortgaging my house in the process.

      • Mr.Joe

        Why would you need to mortgage your house to take full advantage of their network? How does say the Incredible or Droid X take more advantage of vzw network over the OG Droid or even the Eris?

        The only phones I can see that would take advantage of vzw network over the current ones are the upcoming LTE devices.

        • The350zWolf

          Exactly! Thanks for making my point. In order to take full advantage of the LTE network one will need an LTE phone/tablet (none of the actual Droid phones will do this). If you’re stuck with a no upgrade until 20 months into your contract deal then you’re screwed with a 3G phone, unless you fork out $500+ for the new 4G phone. There is nothing wrong with 3G on a 4G world, hey I’m happy with my OG Droid/Droid2 combo, but honestly I’ve been with verizon for 10 years+ and it kinda sucks that indeed don’t value loyal patrons by not offering upgrade perks rewarding your commitment to sticking with them.

          • Kaufkin

            I’m sure there’s a thread on XDA on how to get your Eris to work on 4G w/ a paperclip and some duct-tape, and a “minor” Kernel revision. we just haven’t found it yet. :-)

            but yeah, if you want 4G / latest hardware, this sucks.

            but even so… ok, assume you get a 2nd gen 4G phone (1st gen will probably have other issues, they always do…) you have 20 months. they want you to upgrade faster, @ full price. but WE DON’T HAVE TO! need a feature? bloatware removed?

            Done.

            Cyan and pete (all I’ve run myself..) both have directions to remove what non-dev’s would consider “bloat”, but they consider critical. (I don’t need a software crash simulator for instance, where for a dev, it’s very usefull…)

            so while you have a point, I don’t think it’s the end of the world.. just more need for research and planning and less impulse buying.

            Kaufkin

    • http://www.facebook.com/borgey401 Andrew Borges

      I do not agree with your .2 statement. Your OG Droid is better then that peice of crap they call a Droid X. That phone is the biggest failure of 2010. I would pick a Droid1 over a Droid X anyday. Simply because of the bootloader. You can’t do ANYTHING with a stupid X. I had one for a while and got so sick of all those shitty ROMs that are just OTAs picked apart and nothing more or less. Moto and Verizon you both FAIL

  • Leobautista 91

    T-mobile here i come :(

  • Leobautista 91

    T-mobile here i come :(

  • Anonymous

    its anyone seriously considering moving to another carrier like sporting or att over a few bucks?

  • Anonymous

    its anyone seriously considering moving to another carrier like sporting or att over a few bucks?

    • Anonymous

      you mean a few hundred? yes

  • http://twitter.com/danyay Dan

    12 months, to be exact.

  • http://twitter.com/danyay Dan

    I don’t care about NE2. I can spare $100. But the annual upgrade is a doozy of a loss.

    So, I have one last annual upgrade to use it looks like. Can I use it – and make that upgrade a 1 year contract (even if it’s $50-70 more)? Or am I stuck with the contract I’m on now, 2 years, for 20 more months?

    Your other option, of course, is to sign up a new line on your account and reduce the existing line to a voice only line (you have to have an old non-smartphone to do this, but it doesn’t even have to turn on, you just need its ESN). You can switch the phone numbers over and keep your existing number. Then, your bill goes up $10/mo – $240/2 years. Much cheaper than retail pricing.

    • Anonymous

      “Can I use it – and make that upgrade a 1 year contract (even if it’s $50-70 more)? Or am I stuck with the contract I’m on now, 2 years, for 20 more months?”

      Yeah, as long as it is the end of your 2 year contract. Just make sure when you go to resign that you say you only want to do the 1 year extension.

      If you still have one year left they wont let you sign for only one year.

      • http://twitter.com/danyay Dan

        “If you still have one year left they wont let you sign for only one year.”

        Bummer. I’m in month 5 on my Droid X, which I love, but know there will be a bigger and better device someday. …Well, maybe not bigger.

        Anyway, it bears repeating: ALWAYS SPECIFY to the VZW rep, MANY TIMES, that you are signing a 1 year contract! I used to do this before I found out about the annual upgrade and EVERY SINGLE TIME the clerk ran it through as a 2 year and had to edit it!

        Not that I’m suggesting anything nefarious, but it’s probably repetition… nearly every other contract sold is a 2 year, and they don’t think to change it to a 1 year.

        • Beka27

          They don’t publicize the one-year contracts at all. To find the pricing on VZW, you have to go to the dropdown box, I didn’t realize til last week when I was on the site that there even WAS a dropdown box. I am only doing one-years from now on. I don’t care about the extra $50-100 if they’re going to pull nonsense like this.

  • Made2real4u

    Ne2 credits have not been $100 for a long time. My last one was only 30

    • NewsWorthy

      I used my last $100 NE2 when I got my Droid X on release day.
      ~ Slim ~

  • Sp4rxx

    You realize (to the “sprint here I come” crowd), that financially Sprint is losing a long battle. I’ve been told by someone that works there (higher up than your normal tech) that if they don’t reach a given money value in revenue/sales/margin/whatever by the end of February, that they will be forced to liquidate their assets and sell to the highest bidder.
    Stick it out. It may be a sign of better things to come. I agree with Colin – it’s not earth-shattering. Let’s see where VZW is headed before we abandon ship.

    • NKTizzle

      Considering Sprint is going through layoffs, I’d believe this.

      • http://perpetualn00b.tumblr.com quiklives

        If Sprint sells, it will either be to an entirely new player, or to Verizon, since they are the only major carriers that are CDMA.

        Another thought: Sprint owns both Boost & Virgin Mobile. Anyone find it possible that Richard Branson & Virgin will just buy the whole thing out?

    • NKTizzle

      Considering Sprint is going through layoffs, I’d believe this.

  • http://twitter.com/MrMRM513 Michael Marano

    Hey, Verizon:

    Remember this Consumer Reports survey that cropped up on a half-dozen blogs around the interwebs?

    http://lifehac.kr/hvhmoc

    After this, I predict Sprint will top you same time next year.

    Verizon’s biggest problem used to be it’s crappy hardware selection. Now it seems it’s their lack of love for loyal customers, but that’s wrong, too. Verizon’s biggest problem has always been its own bloated ego.

    Yer not the only game in town. And if I drop my cell contract, I’ll kick my FIOS out the door with it.

    Good luck to you.

  • Anonymous

    WELL I THINK THIS IS BULL. IS VERIZON TAKING NOTES FROM AT&T?

  • Dellbx

    Not kidding…I was planning to leave Verizon any way. This is just the push I needed to follow through…

  • http://twitter.com/mfg68 Matt Galo

    Hopeful thinking: maybe this will enable Verizon to not charge extra for a 4G phone/service!

    • Anonymous

      If the mobile broadband was any indication they weren’t going to anyway.

  • Dellbx

    Sprint, I am coming over…

  • http://www.colinzerk.com Colin L. Zerk

    You get a 1 year upgrade every 13 months on price plans $59.99 or higher.

    • NKTizzle

      According to the policy, it’s on plans of $49.99 and higher.

      • http://perpetualn00b.tumblr.com quiklives

        Having just finished a short stint at Best Buy, I had VZW reps tell me 59.99 several times. Not rguing with you – just saying that somewhere, wires got crossed.

        • NKTizzle

          I know, I’ve heard the $59.99 several times. But I can tell you the listed policy is $49.99 (unless it’s a typo).

  • http://www.colinzerk.com Colin L. Zerk

    I’d like to point out that they don’t have to give you any credit. Although it’s disappointing it’s not earth shattering. Also most phones are less than a hundred dollars unless you buy a droid at a corporate store. Most of you probably buy from best buy or wirefly where you get it for a penny anyway.

    • http://twitter.com/peterg75 Peter Geyfman

      Exactly!! What is the big deal? As long as wirefly exists you can buy your Droid 2 Global for 50 Bucks anyway!

    • http://twitter.com/peterg75 Peter Geyfman

      Exactly!! What is the big deal? As long as wirefly exists you can buy your Droid 2 Global for 50 Bucks anyway!

    • Beka27

      True, but there are two different issues going on. An extra $100 off… big whoop… but an extra 8 months, that’s really annoying. It doesn’t matter if Best Buy and Wirefly are shooting free phones out of t-shirt launchers during the 4th of July parade, no upgrade available on your line… no phone for you.

  • Jfizzknght

    The thunderbolt will probably be released on the 18th.

  • Anonymous

    Translation:

    Dear Loyal VZW Customer,

    We like your money and we don’t mind pissing you off.

    Thanks for your business,
    The Droid Nazis

    • Anonymous

      I couldn’t have said it any better. Another way for money hungry scum to take our hard earned money. Like we don’t pay enough as it is. Just wait, I bet the tiered data plans will make it even more expensive when it comes to normal use on these 4g phones coming out..But why would anyone at Verizon care. They think our only bill in the world is our cel phone,not our mortgage, car payment, insurance or anything else. I think its stupidity because only the cel phone freaks that want the new phones as soon as they come out are going to pay full retail on a phone. Not many people are like that though.. F*ck you VERIZON!

      • Anonymous

        Eff this im going to cricket!

        • Picodroid

          Lol, enjoy your Kyocera Zio.

          • KEchs

            You can flash Verizon phones to cricket. Youtube droid x on Cricket…I was shocked to see it, but it’s true.

          • KEchs

            You can flash Verizon phones to cricket. Youtube droid x on Cricket…I was shocked to see it, but it’s true.

      • Unknown

        I am kind of surprised of all the comments with negativity towards this blog. The cell phone industry has been branded from the very inception of the first cell phone….”FREE PHONE THIS FREE PHONE THAT” And that’s the wireless industries fault. I have never posted anything on this site before but as a Verizon Wireless employee I always direct my customers to this awesome site as for I am a Droid user as well. But as for all this hoopla, Verizon out of the goodness has been giving this NE2 credit to customers as a thank you for being a customer. We all forget that this is money that Verizon loses by being nice. If we all want 4G to be lit nation wide by 2012 then there had to be something taken away and lets not forget again that this was FREE MONEY GIVEN TO CUSTOMERS!

        • Alexjohn22

          Wow..you have absolutely no idea how much money your company makes, do you? Sorry but I’m not going to thank verizon for a NE2 upgrade because its the least they could do for what they charge. Here’s some simple math for you, figure out how many wireless customers your company has, then multiply that by $100 (for the average phone bill) and add a dollar sign and thats how much your company makes PER MONTH. Verizon is hardly strapped for cash as you would have people believe.

        • Soap

          Nice try, Verizon employee.

        • DROIDRTNY

          I left Sprint 6 years ago because they did nothing to retain current customers, only discounts were for new customers. I liked that Verizon did something for their customers where Sprint could care less. Now it looks like the shoe is on the other foot. Might be time for an EVO and a new wireless carrier soon.

          • Wenkraft

            U.S. Cellular has tons of rewards for new AND existing customers. Plus earlier phone upgrades. You should really look into them. I am very happy with them. Also they have received rewards for their network quality and customer service. What’s not to LOVE????

        • Hillybob

          The problem is that Verizon has set up their monthly fee to cover the cost of subsidized phones over a 2 year contract. That’s why the NE2 program is set-up that way. If they want to do away with the NE2 program then I’m okay with that but then they need to drop the price of the service after 2 years to account for the fact that they aren’t subsidizing another phone for me. What they are doing here is ripping the consumer off after the contract is expired. To be fair this isn’t limited to Verizon or even the wireless industry. Cable / Sat-TV comes to mind as they continue to charge for box rental long after the cost of the box was recovered. The reason they do this is simple…Americans are dumb (I can’t speak for other nationalities). American consumers would rather pay less up front even if they pay drastically more in the long run. This lack of forethought allows them to be easily exploited by companies like Verizon.

          • DBK

            Wow only 1 intellectual response to Unknown.

            Anyways, I agree. Since the fee for the service is meant to recoup the cost of the subsidized phones, then to balance out the loss of the early upgrade and the NE2, they should lower the fee once they have covered the cost of the phone. Of course, that wouldn’t be the case for those who upgrade constantly, but it should be for those of us who keep their phones for awhile.

        • http://www.facebook.com/borgey401 Andrew Borges

          yeah you’re pretty much a failure… you can keep your 20 month upgrades this is it for me n verizon. not that me leaving will effect them in any way but they just lost a 11 year customer that spends 300 a month.

          • ScottK

            Agreed! No rollover, holidays are no longer free, and text messages are drastically overpriced. Sprint has some good phones and could blow Verizon out of the water with this. Big Red better send some quality perks down the pipes fast before my contract is up.

          • MrC1122

            if they pull this crap, they’ll loose a 12yr. customer in me. unless they throw in some kinda “loyal customer” clause…i will terminate my contract, take my 5 lines and $300 a mo. somewhere else. vzw is not the only carrier with android! it seems that we are paying more and more, while getting less and less.

          • MrC1122

            if they pull this crap, they’ll loose a 12yr. customer in me. unless they throw in some kinda “loyal customer” clause…i will terminate my contract, take my 5 lines and $300 a mo. somewhere else. vzw is not the only carrier with android! it seems that we are paying more and more, while getting less and less.

          • http://twitter.com/JJL919 Jeremy

            Agreed. I’ve been with them for almost ten years and up until now, I’ve loved being a customer. They always treated me right, gave me upgrades on a yearly basis for the two year price, and had great customer service. Now that they’ve got the coveted iPhone, it seems like they forgot who got them to where they are today. If things don’t change within 6 months (when my second line’s contract is up), I will unfortunately be looking for service elsewhere.

        • xemployee

          Wow-how naive. Verizon gave up on it’s landline customers and now planning to do the same to wireless customers. Verizon landline employees made the company money so it could enter the wireless business. This past year was brutal for their employees with all their layoffs etc. Don’t think as a wireless employee you are cared about any more than the other employees or any of their customers. The bottom line is what they care about and will do anything to increase their revenue even at the cost of loyal customers.

        • NoLongerLoyal

          Really? Do you really think Verizon “out of the goodness” is losing money?! Give me a break. Verizon hasn’t lost a dime. While I will agree, that the new every two program is great, it would be even better if they could provide a phone that would actually last two years. Which is why the one year upgrade has been so invaluable to me. I have yet to purchase a phone from Verizon that didn’t cop out on me after the first six months. So I am always willing to linger with the phone for an additional six months until I can renew. While I love shiny new gadgets just as much as the next person, I’ll admit when I find something that works, I stick with it through and through. Verizon my dear, it’s been a long ten years but I’m afraid after waiting for the iphone for almost half of that time I just may have to terminate my contract. Behavior rewarded is behavior repeated.

        • Ctandshane

          Ah who in the hell are you trying to convience if VERIZON is loosing money it would not be in the cell phone industry

        • Ctandshane

          Ah who in the hell are you trying to convience if VERIZON is loosing money it would not be in the cell phone industry

        • Ctandshane

          Ah who in the hell are you trying to convience if VERIZON is loosing money it would not be in the cell phone industry

        • Ctandshane

          Ah who in the hell are you trying to convience if VERIZON is loosing money it would not be in the cell phone industry

        • Ctandshane

          Ah who in the hell are you trying to convience if VERIZON is loosing money it would not be in the cell phone industry

        • Ctandshane

          Ah who in the hell are you trying to convience if VERIZON is loosing money it would not be in the cell phone industry

        • Rex D

          You are an idiot… and to think you are an idiot for probably $15.00 per hour….

        • Alex

          I love that you as a “Verizon employee” think that it is “out of the goodness of Verizon’s Heart” that they “gave” us NE2 credit. The NE2 credit was recouped in the service price per month during the 2 year agreement. Prices of service are going UP (as technology ages, it gets cheaper not more expensive) and yet we are losing benefits. The industry is becoming as money hungry and greedy as the Banking, Oil, and Pharmaceutical industries. We get charged for Text Messaging even though the carrier signal that texts are sent on has to be pushed to maintain communication with the tower in-range of the phone so that an incoming call can be received. IN OTHER WORDS, a text message DOES NOT COST a carrier any bandwidth or “additional cost” versus the phone just being powered on and yet we get charged RIDICULOUS amounts of money for the right to send and receive messages. Multi-media messages are a different story.

          The bit about “loosing something to gain 4G by 2012″ is just STUPID. Verizon has the widest reaching and most functional network of any US carrier and that is the reason that I enjoyed using Verizon. Deploying a network costs exponentially more than maintaining an existing one, yes. But If Verizon is making the same profits on 4G in 2013 as they were on 3G in 2009 and 2010, then there is ZERO chance that the change in MB/GB usage, NE2 discount, and text message fees could have paid for the upgrade. Since Verizon completed their 3G deployment and only had to worry about maintenance, they’ve been pocketing money in the billions in R&D, and “investment” funds. The 4G upgrade is coming from that money, not solely from customer billing as you would have us believe. In other words, there is no financial NEED to change fees, rebates, and credits. It is just a CORPORATE PLOY to get more money to line the investors’ pockets.
          Your argument is uninformed and pathetic!

    • Seidio

      Hey this is good news for anyone who makes phone accessories!

    • Bradley_TN

      I would have to agree and I wanted to make sure I knew for sure that I what I was reading was correct so I called Verizon. They confirmed that everything listed here is true. Pretty much if you already have a contract and are eligible for a new every two after Jan 16 they are still honoring that but then after that once honored discounted upgrade you will no longer be eligible for a discounted upgrade beyond that of what new customers receive.

      In other words their existing and loyal customers are no more important to them than someone who walks in from the street and joins their service.

      If you would like to let Verizon know how disappointed you are with their decision to belittle and disrespect their customers then you can call them and speak with a representative who will document your complaint or you can write to Verizon at:
      Verizon wireless
      Po box 105378
      Alpharetta, ga 30348

      • Jenhobe30

        I agree with you Bradley. I thought Verizon was so great, but now that I work fo rthe competitor I think differently. Where I work the contracts are 1 and done. You sign the first contract adn never have to sign another. You still get to upgrade your phones every 18 months or less at the discounted prices. Hell, when Verizon bought out Alltel they shut alot of their towers off and have not put them back in service. You use to see your dropped call count on your bill every month. Now you have so many dropped calls that they don’t keep track. I called to find out how many dropped calls I had one month and they couldn’t tell me because I had to many. VEIZON SUX!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

  • sparty569

    1 yr contracts…here I come.

    • NYCLawyer

      Well, that’s it – there used to be an advantage to getting the two year contract. That seems to be over now. With the constant improvement in phones, your phone will be obsolete in 6 months, and you are stuck with an obsolete phone only for four months. The primary reason for the removal of the $100 discount is the loss on the price of the phone and the lack of competition in the market place. Verizon recognizes that it is winning and does not need to pay for customers.

      • MrC1122

        maybe…@nyclawyer. but where is vzw gona be when all their long time loyal customers get tired of being dumped on and go elsewhere?

      • MrC1122

        maybe…@nyclawyer. but where is vzw gona be when all their long time loyal customers get tired of being dumped on and go elsewhere?

    • Gordon Bombay

      …and that’s what they wanted you to say.

      Every year, now, you’re going to want the best and greatest Android phone, and you’ll be happy to pay $149-199, the standard price. Of course, now you’re paying $15-20 more per month (assuming you upgrade immediately after 10 months) than you were before.

      At the end of the day, for those that can afford it, it’s well worth that extra $15-20 per month to be able to get new hardware/software after only 10 months.

      • Anonymous

        One year contracts are the Same price per month as two year contracts, just an extra $70 up front for the phone. So 199 on 2yr, 269 on a 1yr

      • http://pulse.yahoo.com/_NPKTZZ2HPNH5XVO4UTKIHV76NY pebbles,

        i dont want hte best phone out there. i can care less about the stupid internet, the latest touch creen and aps . i dont like all the new phones out there now. i am happy with my nvv3. plus i am not like everyone else that can afford a new/stylish/need to be with the in crowd phone every 6 months.

        • Iveyjohnc

          Funny that you would even be on a Droid fan site with that kind of attitude. Most of the readers here are enthusiasts, technophiles and early adopters who are very interested in all those things.

        • Iveyjohnc

          Funny that you would even be on a Droid fan site with that kind of attitude. Most of the readers here are enthusiasts, technophiles and early adopters who are very interested in all those things.

    • Anonymous

      I was just thinking the same thing….

  • http://davesmith42.livejournal.com/ David E. Smith

    This looks just like the old policies to me (as pertains to “you can get the new-customer price after 10 months on a 1 year, or 20 months on a 2-year”). What am I missing?

    • Anonymous

      If you were on a 2 year contract you could still upgrade after 10 months and resign your contract. This doesn’t allow that anymore.

      • Gee

        Only if you were on a plan that qualified IE 69.99$+

        • Anonymous

          Nah, I did it with my past phones. Even the old style simple phones and I was on the old old $39.99 plan.

    • Beckbjj

      Ditto to David’s question. I’m not seeing the difference either.

  • Anonymous

    What is a annual upgrade anyway? I’ve had my phone for 13 months and was waiting to be eligible for an upgrade… am i missing something? I thought you had to wait the full two years or pay out the butt for a upgrade?

    • http://twitter.com/thome50 JW

      I’d like to know this as well.

    • NKTizzle

      If you were on a qualifying plan ($49.99 or higher) and were on a 2 yr. contract you could upgrade after 12 months @ 2 yr. contract pricing + $20 Annual Upgrade Fee. Orders processed via the web are excluded from the fee.

  • Anonymous

    Sprint.. Here I come!

    • LinuxLover

      Good luck! Everyone I know that gets Sprint has hated it here in my area.

    • Swould333

      Had sprint for 5 yrs and loved their service… till they merged with nextell… then the nightmare began…. customer service went to crap and i do mean CRAP!!!!.. especially in comparison to verizon….

  • Anonymous

    So does this mean that I can use the Annual upgrade one more time even after Jan 16th? Or do I have UNTIL Jan. 16 to use it? (I am currently eligible for the Annual Upgrade)

    • Jamerson90

      If you have one, you might think about using it now. If you use it after Jan 16th you will no longer be eligible for the program. correct me if I’m wrong, but it sounds like they will enroll you in a new annual upgrade up to Jan 16th

      • Monique

        well, lets hope they release the Thunderbolt before the 16th. I actually had a OG Droid and then snatched up a Droid Incredible a few months ago off of ebay so I could use my annual upgrade which I am due for now…ugh, I hate being forced to make a decision like this. I really want to wait and see what phones will be available and make my decision from there.

      • DBK

        That’s for the NE2. Once you use the annual upgrade, regardless of when, it’s gone.

    • Hwellj13

      would also like to know…… waiting to see what comes out at CES

    • Reginald Owens

      It means that you can use it (or NE2) one more time if you use it AFTER Jan. 16. What you could do is use it now which would put you under the current term (you would get another one in January of 2012). But, after that, you would not get another one. If you are like me, in which your annual is after January 16, you can use it one last time but then that is it. My wife is eligible now so if we walked into VZW and got her a new phone, she would have another annual in January of 2012 as well.

    • nastysquar3d

      It seems to me that if you’re eligible for your annual upgrade currently, you’ll still be able to use it after January 16th. However, when you upgrade after the 16th, that will be your last annual upgrade ever and you’ll get a letter notifying you of this.

      • NKTizzle

        Correct.

        All existing contracts will have 1 remaining early upgrade/NE2 after Jan 16th. Once you use it after that, it’s gone.

  • http://twitter.com/Bailers Geoff

    Really seems like a bad move on Verizon’s part. I was considering upgrading this spring to a LTE phone to replace my Droid X, but I might need to rethink that now.

    • NewsWorthy

      As soon as the LTE followup to the Droid X is released, I am upgrading regardless. I am sure this whole 20 month thing only applies to new contracts as of 1/16/2011 and I have full intentions of going with 1 year contracts from here on out. The only reason I was doing the 2 year before was because of the NE2 and my last renewal was also my last $100 NE2. Give me a Droid XY and a Xoom and I am a happy man…
      ~ Slim ~

      • Synergy

        Nope. This was true at the end of March 2010 when I switched to Verizon. It’s been showing for months that I’d be eligible for an upgrade sometime around the end of Nov 2011.

        • NewsWorthy

          Nah. This is something different than what you are referring to. If you were on a 2 year plan, it would always show that your next upgrade eligibility was 20-24 months from your last. However, you would be eligible for an early upgrade after 1 year. It was never something that was publicized. What this post is saying is that you will no longer have that early upgrade option on a 2 year contract. Do you get what I’m saying?
          ~ Slim ~

          • wrud123

            Actually, it was publicized, but not very much. On Verizons website it explained upgrading once a year.

    • NewsWorthy

      As soon as the LTE followup to the Droid X is released, I am upgrading regardless. I am sure this whole 20 month thing only applies to new contracts as of 1/16/2011 and I have full intentions of going with 1 year contracts from here on out. The only reason I was doing the 2 year before was because of the NE2 and my last renewal was also my last $100 NE2. Give me a Droid XY and a Xoom and I am a happy man…
      ~ Slim ~

    • Anonymous

      I’m the same way. I’m waiting for the Tegra 2 phones in February or March so idk what to do now? Should I just wait till June when my contracts up and get a phone then and then I’m stuck with the every 20 months thing or should I just go get a new phone now so I can have the 1 year contract? Droid-Life community help me in my decision please

      • NewsWorthy

        As soon as the 4G phone that tickles your fancy is available, jump on it with a 1 year contract. The fog should clear a little bit by the end of the day tomorrow after the VZW event at #CES. Stay tuned to Droid-Life for details.
        ~ Slim ~

  • Jfeltis

    Seems like they are getting ready for Thunderbolt and iPhone action…

    • Monique

      yeah, it kind of seems like they are to me…but weren’t they offering early upgrades to the Droid X and such last year if your contract was ending in 2010 anyway? Maybe they will offer things like that still…that’s soemthing to think about.

      • NewsWorthy

        Good point Monique. However, your point did make me think that maybe the preparation started way back then. This may have all been a part of the plot which is thickening by the way…
        ~ Slim ~

      • http://www.mydigitalwhiteboard.wordpress.com anim

        I hope they offer early upgrades for Thunderbolt or any other new LTE + Front Camera device.

  • Rmhiscool

    Sprint here I come!

  • http://twitter.com/willsours Will Sours

    I think its time to switch to Metro.