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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

    We want to buy your old and new verizon phones at http://www.swapngren.com

  • Anonymous

    We want to buy your old and new verizon phones at http://www.swapngren.com

  • Anonymous

    The $100 NE2 has been discontinued for a while already. If you had a $100 NE2 then you kept it. However the only amounts that were being given out recently before this news was the $30 and $50 NE2.

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

    How is it exactly that Verizon is supposed to be better than AT&T? These companies all suck. Verizon may have slightly better reception in a few locations, but all of these folks wanting to hop from another carrier to Verizon to get the iPhone are going to be in for a rude awakening if they think it will all be bliss there. They are just as bad and when the ultra whiny iPhone user crowd joins up, they will take just as huge of a beating as AT&T.

    • DBK

      Wow, someone’s had a little too much hateorade today. If you can’t see how much better Verizon’s service is as compared to AT&T, then there is no hope for you.

  • Anonymous

    Can someone explain the way Verizon’s old upgrade and new every two plans worked? I’m a fairly new Verizon customer (just joined in November 2009 for the DROID) and the way I thought it worked was if you sign up for a two year contract after ~18-20 months you became eligible to get a new phone at the promotional price and this would extend your contract for two years, which means that instead of having to wait the full 24 months you could get one a few months sooner. Is that no longer the case? Or was the NE2 something different?

    Regardless, I was planning on changing to a one year plan when my contract was over anyway so this doesn’t affect me that much, although it will definitely make me more likely to just drop Verizon when the contract is over. I don’t like the way their Android line of phones is going, still don’t see a worthy update to the original DROID (stock, well made Android phone) and while I like the coverage, it isn’t THAT essential to me (especially with my current job where I don’t travel).

    • DBK

      NE2 refers to the credit you would get toward your upgrade. They are getting rid of that. The only other difference is that they are also doing away with the early upgrade available for two year contracts (after 13 months if eligible). Now you can’t upgrade until 20 months in for 2 year contracts and 10 months in for 1 year contracts. You still get your discounted price for upgrading. But that price is going to be a little higher for the 1 year contracts. Hope that helped.

  • Joster2609

    I like verizon, but the question is do I like it enough to stay on this dumb upgrade policy or leave. I also love the droid lineup, however I’m considering just going to sprint after my contract, or even at&t that is how pissed off I am right now. Hope u learned your lesson verizon, your customers always have the power to go to your compition and give them our money, not u

  • Olonajoseph

    Its so sad that verizon makes none of there customers happy..A couple more shity rules and I’m going to Sprint….

  • DBK

    So basically this is what’s happening:
    - Current customers/contracts aren’t affected by the change
    - Only new customers/contracts (as of the 16th) will be affected by the change
    - If you use your NE2 prior to the 16th, then you are eligible for one more
    - If you use your NE2 after the 16th, then that will be your last one
    - Annual upgrades for 2 year contracts are gone. If you are eligible for one and use it (either before or after the 16th) it will be your last one.
    - You can still get the upgrade price, but not until your 1 or 2 year contract is nearly up

    Does that pretty much sum it up?

    If so, then the only issue I see is with the loss of the annual upgrade. For those who upgrade constantly, this is quite a blow. But let’s face it, us Droid-Lifers (and those like us) are in the minority when compared to the Verizon customer base as a whole. They are simply doing what any “good” company does and cater to the majority, where most of their profits come from. It sucks, but is not a surprise by any means. I can say with the utmost certainty that those not belonging to this community or to similar communities will not notice the change and that most of them will probably not even now a change was made.

    For those of you deciding to buy your phones from other vendors (Best Buy, etc..) because of the cheaper prices, know that you only receive those prices if you are eligible for an upgrade, which this new policy will make fairly difficult. Also know that if you are planning to jump ship and switch carriers, that you are making a BIG sacrifice in product quality and service quality in order to save money. I wouldn’t be surprised at all if more than 2/3 of the those jumping ship will return by year’s end.

    And for those of you who are switching over to 1 year contracts know that in attempting to hurt Verizon, you are actually helping them. They will make more money off of you on the 1 year contract than they would on the 2 year contract. Keep that in mind.

    This is just my 2 cents on the matter. Take it as you wish.

    • DBK

      Forgot to mention that for the current customers/contracts, once those contracts are renewed (after the 16th), then those changes will be in effect.

    • RW-1

      I believe you hit it dead on.

      I’m going to upgrade later this year rather than use one now, and holding a phone for 20 months won’t kill me. In fact the OG Droid runs fine rooted and modded. It will force us power users to select carefully the next unit that we take in reguards to rooting, etc.

      • DBK

        Even though I am a phone geek, I don’t upgrade until the end of my contract, so this doesn’t really affect me. And like you said, I can wait the 20 months. If I can survive over three years with a dying, leaking crackberry pearl, I can survive 20 months with my Droid 2. :)

  • FusionSaint

    I know I will get some flame for this but I don’t quite understand. If I have a NE2 that is eligible anytime now (it was active as of November 30th 2010) and I use it in March to buy a new LTE phone I don’t get another upgrade for 20 months?

    • DBK

      If you use your NE2 after the 16th, then that will be your last NE2. You won’t be able to upgrade for 20 months, and when the time comes, you only get the discounted price, no credit. Hope that helps.

  • Black743

    So I’m eligible for an annual upgrade right now. Does this mean I will lose that after the 16th? Or do I get to use my annual upgrade I have now either way?

    • DBK

      If you are eligible, you can use it anytime, but it will be your last one.

  • DUBJ

    So if I got my droid d1 a year ago (December 2009) then I will be eligible for an upgrade price 6 months early (so after 18 months)

    hmmmmm…so the only difference is 2 months after my next upgrade….waiting an extra year is a pretty big deal. what are the disadvantages of a 1 year plan over 2 year? more expensive per month

    • NKTizzle

      Only difference between 1 and 2 yr is the price of the phone.

  • E2icNathan

    wait im confused D: can someone explain to me how this is different from how it is right now?!?!?! D:

    • NKTizzle

      No more early upgrade @ 13 months on a 2 yr. contract and NE2 is going away.

    • Viper76269

      NE2 was the $100 contract price

  • Anonymous

    Not sure how I feel about this…been with Verizon for almost 10 years, where else am I gonna go?…good thing I get a killer discount from work!

  • Bs_thinker

    I guess I don’t need to be a loyal Verizon Customer. Hey Google can you hear me now?

  • Ewyreutrgdurt

    supershops.org

    • Justin

      You would enjoy fuckyou.com

  • scribbles

    Why why why

  • Yreustdgfdrdurt

    supershops.org

  • Ryan C

    Even worse news as to which cool new phone ill get next time.. I always used to save like $200 bucks with the NE2 $100 credit and the $100 upgrade/renewal credit. Have to say the purchase of my OG Droid was the best choice i could have ever made for a phone.. so glad i didn’t go with the envy.. :p

  • Viper76269

    after reading the official message posted on engadget, it seems like they’re making it that you can upgrade for the promotional price whenever you’d like, but you’ll have to extend your contract, which makes a lot of sense. but then i could see the termination fee going up a bit, which i don’t mind cause i dont’ see myself terminating my account anytime soon.

  • Dfghfh Fgj

    shoeboxs.us

  • newlights

    WOW now a real reason aside from pricing alone to leave Verizon…..

  • newlights

    WOW now a real reason aside from pricing alone to leave Verizon…..

  • Atomic

    I think I’m tangled in all the wording here. If you are in a current 2 year contract, will you still be able to take advantage of the discounted upgrade you can get after one year? Or does that end for everyone in March? In other words, is everything the same for current contract customers until they renew? Thanks…

    • NKTizzle

      Yes, nothing changes for existing contracts.

  • Atomic

    I think I’m tangled in all the wording here. If you are in a current 2 year contract, will you still be able to take advantage of the discounted upgrade you can get after one year? Or does that end for everyone in March? In other words, is everything the same for current contract customers until they renew? Thanks…

  • Wareaglevi

    Apparently, Verizon doesn’t care for the nice sum of money I spend each month for their service. I’m sure others can help me out then.

  • Ken

    I just hung up with Verizon. They do not show anything about that in their “system” and, asked around about that and no one knows anything. lol

    • NKTizzle

      Training just started.

      • Crazzbaby4114

        Verizon customer service never knows anything.. the forums know before they do.. if I was an employee I would keep up with the forums just to b in the know..

  • Sep

    This just means that I’ll be buying my next phone from another vendor, like Amazon, and then having Verizon activate it. So now, instead of giving me $100 in credit that they’ll make back anyway, they’re not going to get my money for the phone itself.

    Oh well.

    • NKTizzle

      Pretty sure the great pricing on Amazon is only with a standard upgrade. If you’re not eligible for discounted pricing from VZW, I don’t think you will be with Amazon either (i.e. buying the phone with no service and activating it on VZW).

    • Anonymous

      They make MORE money when you buy from amazon… you get that, right? You buy from amazon, they just have to pay amazon some money in commission (slightly over the retail cost of the phone). If you get it from them, they’re out the whole discount on that phone.

      In both cases, you’re paying Verizon the monthly fee, but in the amazon case, they didn’t have to take a single penny hit to get you as a customer, and if you leave, they get the full ETF and amazon gets none (you cancel in 6 months, amazone doesn’t get a dime from verizon)

  • Ere5gtt

    ta.gg/4vp

  • Dave

    I don’t get it – if you have a two year contract, how are you eligible for an annual upgrade?

    • Ryan C

      I’ve wondered this myself many times as i have never in the 6 years I’ve had 2-year contracts was “eligible” to get a new phone after one year, or upgrade a phone after one year. Yet i have heard numerous people tell me about how the go and do it every year. I just always put it off as it must be for the “4-family plan” contract.

    • Ryan C

      I’ve wondered this myself many times as i have never in the 6 years I’ve had 2-year contracts was “eligible” to get a new phone after one year, or upgrade a phone after one year. Yet i have heard numerous people tell me about how the go and do it every year. I just always put it off as it must be for the “4-family plan” contract.

  • http://twitter.com/Coleman0610 Travis Coleman

    Thats fine… I’ll just quit using their contracts and do month to month. I’ll start paying outright for the phone.

  • tjhrulz

    It is because of articles like this that I love this blog, because if it wasn’t for droid-life I don’t think I ever would have heard of this (and certainly wouldn’t have heard it from verizon) so I guess what I am saying is

    TDLYGR

    Thanks Droid Life You Guy Rock

  • tjhrulz

    It is because of articles like this that I love this blog, because if it wasn’t for droid-life I don’t think I ever would have heard of this (and certainly wouldn’t have heard it from verizon) so I guess what I am saying is

    TDLYGR

    Thanks Droid Life You Guy Rock

  • tjhrulz

    I think they are planing for something big, why would the piss this many people off if they don’t have something up their sleeve.
    Or they are trying to push 1 year plans because the i*hone is coming and there is a new one of those every year and Droids are outdated within 6 months. So they squeeze more money out and give you the option of getting a new phone every year.

  • tjhrulz

    I think they are planing for something big, why would the piss this many people off if they don’t have something up their sleeve.
    Or they are trying to push 1 year plans because the i*hone is coming and there is a new one of those every year and Droids are outdated within 6 months. So they squeeze more money out and give you the option of getting a new phone every year.

  • Kblakeshot

    I hope this has no effect on employee family plan lines because my sis works at Verizon and we get upgrades every 10 months at the lowest upgrade price….

    • NKTizzle

      No, it will not affect those lines.

    • NKTizzle

      No, it will not affect those lines.

  • The Zune Lune

    Most of you are more versed in the upgrades than I am, so forgive my ignorance….I am eligible for an upgrade (I believe partial discount) now. I have had my device for a year as of December. My contract is up in August. Does this mean I need to get a new phone by Jan. 16th in order to get the discounted pricing? I was planning to wait until after CES and have actually been considering switching to a WP7 phone.

    • NKTizzle

      You are eligible to upgrade now. You can wait as long as you want to upgrade. This doesn’t affect that.

      The only change is when you do upgrade and renew your contract, the terms will change to the new upgrade policy and will loose the NE2.

    • NKTizzle

      You are eligible to upgrade now. You can wait as long as you want to upgrade. This doesn’t affect that.

      The only change is when you do upgrade and renew your contract, the terms will change to the new upgrade policy and will loose the NE2.

      • The Zune Lune

        Thanks for the explanation.

  • DROIDMANX

    Im not eligible for an upgrade until 12/20/11 and im 12 months into my new every 2 so what does this mean to me on 01/16/10??? please help.

    • NKTizzle

      No change for you until you upgrade/renew.

    • NKTizzle

      No change for you until you upgrade/renew.

    • http://perpetualn00b.tumblr.com quiklives

      Well, 1/16/10 is long gone. But it also doesn’t mean anything for you on 1/16/11, as I understand it. Because you are currently in a contract that allows early upgrades and NE2, you will keep those.

    • http://perpetualn00b.tumblr.com quiklives

      Well, 1/16/10 is long gone. But it also doesn’t mean anything for you on 1/16/11, as I understand it. Because you are currently in a contract that allows early upgrades and NE2, you will keep those.

  • Nikobasile

    I dont get it. My upgrade was in december am im saving it for the iphone. What does this mean? That if i don’t use it before the 16th i loose it?

    • Anonymous

      Doesn’t matter, you’d be wasting your $100 anyway :)

      • Nikobasile

        Lol. Heres my thinking. I could get the thunderbolt but in two moths the thunderbolt 2 will be out and i’d be outdated. Or i could get the iphone 4 and have it last a while. I mean, come on.

        • Anonymous

          LOL The i*hone 4 was outdated about 5 minutes after those lines started forming outside the stores.

    • NKTizzle

      This change doesn’t affect your contract. You are still eligible for for the NE2. It will change when you renew/upgrade.

  • Itiscosmo

    I jumped to Sprint and EVO in Aug. I have $50 a month in my pocket and all the toys on the Evo /root/ rom Burnt Droid and love it over my Verizon Org.Droid/rooted Jrummy rom , $86 vs $136, I win.

  • Eddieg28sp

    I think VZW Wants everyone That is eligible to go out and Upgrade Now by the 16. AND they will be START releasing the New Phones that Following Tuesday the 18th. That way we have to buy a phone sooner, rather than Later and they get rid of their old Inventory without having to heavily Discount it all…. That’s my 2 cents.

    • Crazzbaby4114

      I think ur 2 cents is correct.. except it will be 30 days so those ppl who upgraded can’t bring them back for another phone.. IMO

  • Anonymous

    That google phone store is starting to sound like a much better and better idea to me… these phone companies are going to be bending us over this coming year it sounds like, premier pricing on certain apps, no unlimited 4g, and now taking away NE2.

  • http://www.facebook.com/profile.php?id=1276750673 Earl Painter

    Looks like I may be switching to sprint at the end of this year

  • Anonymous

    this is some bull i been with verizon so so long paid they alot of money an this how they act…as soon as i seen boost or virgin or metro have a android with front camera im out

  • Joster2609

    Could I have some help? I just upgraded to a Droid x in July so can I still get an early upgrade with the new every 2 thing? How does ne2 work anyway? Is there any other alternatives to get a one year upgrades?

  • Anonymous

    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

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

    Wonderful, my contracts up the 17th

  • suchashorttime

    i don’t think we should get up in arms quite yet. verizon has come a long way in the past 12-18 months as far as consumer relations and appeasement go. it is certainly no big secret that this news is going to piss off a lot of verizon customers, especially long-term ones like me whose family has been with them for close to 15 years. considering the timing of this next to CES, i tend to think there is going to be another layer of this revealed at the conference. perhaps they’re going to go full-on with the bundled text/data/voice plans they piloted a couple months ago. maybe they’ll work the $100 credit into the pricing of the phones, making them look more appealing than other carriers on the tag. maybe they’re just cutting some contractual tethers to make room for personalized plans as they apply to LTE. maybe they plan on running promotions that entice consumers to buy their new technology at a price that is between the full retail and upgrade price, but extends their contract early (i.e. DINCHD retails at $600, upgrade price at $200, maybe you can snatch an early upgrade for $3-400).

    i know some of this is wishful thinking, and some of it is unrealistic, but the fact of the matter is that verizon has become a pretty smart company – and believe me, i would have preached the opposite as soon as 18 months ago. i think the change will ultimately effect consumers less than projected here, and possibly work in the favor of techies that want to upgrade their gadgets more than every 18 months. remember, they need to remain competitive, and this alone isn’t going to get them far.

    • Cabarete007

      You are by far the most correct person in here. People who think VZW is going to just take away something and not replace it with another promotion have no clue about how the industry work. I’m actually surprised at Kellex and Tim-a-to and their comments on this issue. VZW wants everyone to have a smartphone, period! Last year when the X and DINC came out they let people upgrade way before the 12 month mark, as long as you had a simple phone.

      Here’s some more history for those that have not been with VZW long. When the NE2 (new every two) credit used to be $100 (by the way, it hasn’t been that for 2 years now, it’s $50 and $30 depending on your plan, if you have a $100 it’s because you haven’t upgrade in over 2 years) smartphones used to be $400 – $500 subsidized, I remember paying $450 with 2 yr. agreement for a Treo 650. As the subsidy prices on phones have come down so has the NE2 Credit. You can go get a LG Vortex for $40 buck or a Moto Cirtus for $0 or an Blackberry Curve 3G for $30 right from a VZW store right now (I paid $200 for my first Blackberry 3 years ago).

      So I can almost guarantee you that there will a ton of promotions once these 4G phones start coming out. First they will be targeted at simple phone users then at 3G smartphone users. I’m not worried one bit, and all these people that are up in arms now, including Tim and NM and Kellex are making a big deal out of nothing. Data is the future and it makes no sense to let people not upgrade to a higher data phone.

      My 2 cents.

      • The350zWolf

        It is quite sensible what you guys are saying, and I wish that you guys were in the marketing consultation committee of Verizon, but what you are saying is not what the policy described above says. It says no more NE2 after Jan 16 and promotional phone pricing only toward the end of your contract. To me this is just a way to make sure you stay in with a contract.

      • Calculatorwatch

        That makes a lot of sense and I hope you’re right, but what I don’t understand is why would they announce this first? If they have some kickass promotion to go along with this then wouldn’t they want that to be announced at the same time and overshadow this news instead of getting everyone all up in arms about it? Either way this is probably still bad news for the people here who are loyal verizon customers and want the latest and greatest smartphones. As like you said the promotions will probably be more targeted at non-smartphone users and new customers.

      • Verizon Blows

        Welcome to Droid-Life, Mr Verizon PR schill.

    • DBK

      The Voice of Reason has spoken!

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

    newer, cheaper, and more controlling than EVER BEFORE

  • Anonymous

    I personally don’t care about this. It just means I’ll pay $50-75 more for a phone, since I’ll only do 1 year contracts from here on out. It’s honestly no different, considering smartphones nowadays are $150-200 compared to 3 years ago when smartphones were $250 after rebate on a 2-year. Once it’s all said and done, it’s no different.

    To all the whiners saying they’re switching carriers over this: have a blast, see ya later.

  • Nbird0784

    sprint or one yr contract, not sure which is better?