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Training Materials Suggest Verizon Will Introduce a Device Payment Plan in the Near Future (Updated)

verizon 4g lte markets

On the heels of this morning’s report that Verizon is changing up device upgrade periods from 20 months to 24 months, we have a follow-up report that may lift your spirits a bit. According to the document we received that appears to be a part of a training guide for this new upgrade policy, Verizon is confirming to employees that a new “Device Payment Plan” will be introduced “soon.” There is also mention of this payment plan being used to pay off the “full retail cost” of devices, an initiative T-Mobile started and is enforcing with their new UNcarrier approach

verizon payment plan

While specifics are not mentioned, we would assume (or at least hope) that this would be an alternative option to customers having to sign two-year contracts, since Verizon’s own CEO Lowell McAdam mentioned at the end of last week that he’s open to ending contracts as long as there is a demand for them. At the same time, the document does mention that this new payment plan may only be an option for those who simply want a new device but are not yet at the end of a contract. It specifically says for customers who “want the latest cutting edge device or are just not satisfied with a working device.”

With T-Mobile, customers can sign up for service, but are not asked to sign a traditional 2-year contract. Instead, T-Mobile asks that you pay for monthly service, but also offers you the option to pick up a new device and then pay monthly installments on it until it is fully paid off. So rather than signing a contract, paying a subsidy (discount) on a phone, and feeling trapped for two years, T-Mobile lets you have some freedom as long as you pay off your phone in full. If you’d like to pay it off in full up front, it’s yours. If you’d like to pay it off over time, you can do that as well.

We speculated this morning in the comments of our report that aligning upgrades with contract periods could be a sign that a situation like this is on the horizon.

What we’re curious to learn now, is how this affects those of us with unlimited data plans or if it has anything to do with contracts whatsoever. Since tiered and shared data plans were introduced, Verizon was forcing you to give up unlimited data should you take a subsidy (discount) on a phone and sign a new contract. But if they are going to a device payment plan, potentially without contracts, customers are technically buying phones at full retail, which in the past has been a way to get around losing unlimited data.

Verizon has yet to announce this new plan, so for now, details are scarce. We have reached out to Verizon for comment and will report back should we hear anything.

Update:  Verizon made somewhat of an announcement for the Device Payment Plan, saying that these operate outside of contracts and are simply a way for customers to buy phones before their contract is up.

“Customers also have the option of purchasing a phone at full price at any point before their contract expires and beginning April 21, some devices will be available for purchase through the Verizon Wireless Device Payment Plan.”

  • xatlx13

    example of how verizon will take advantage.

    tmo iphone 5 579.99/ $99 deposit with payment plan

    unlimited everything $70 + $20 a month 24 months= $90

    verizon iphone 5 579.99/ $99 deposit with payment plan

    unlimited talk and text and 2GB data $70 + $40 a month 12 months= $110

    mind you this is estimating verizon will attempt to be competitive with an iphone bc that was tMo’s draw for most and based upon the current prepaid offering verizon offers. if they were to do unlimited data at this offering my prediction would be $100 a month not including the payment plan. the only draw would be current verizon customers paying for a single smartphone plan with data would be attracted to an upgrade every 12 months vs 24. other than that i would not expect much from a deal from this with verizon.

  • Syraz/Azilla

    Sadly, I can use this, I was force to sell my s3 due to financial problems I had to fork out a lot of money I didnt have, but can easily toss 20ish a month and get a new phone, this X2 is just garbage that I am using

  • mjlindamood

    I wonder if I can take advantage of this to keep my unlimited data. I mean I can buy a full retail phone right now and keep it but I wonder if I can use the payment plan to help offset the cost….

  • Jack

    droid-life the best website hands down.

  • anonymous-x

    How about making the phones affordable with the ability to return the phone at a proper price when exchanging for a newer phone with affordable plans including unlimited data. In other words how about making this cell phone business for the consumer.

  • Done with Verizon.

    I am done with vzw and all of their money hungry jedi mind tricks. They have been deep in my pockets for far too long. I have seen the light since tmobile has offered their no contract plans. Someone said it right when they said for carries to stop subsidizing phones and allow people to get them from the manufacturer’s. Vzw got me when they offered their new unlimited talk text plans. I switched to this thinking I would save money and I didn’t. I lost my unlimited data and paid 5 dollars less a month. Can’t wait to start service with tmobile once my sim card arrives. Vzw will keep loosing customers unless they stop this nonsense. Vzw I hope you’re happy with yourselfish ways. I hope you just go away and allow customer friendly companies to have some bandwidth to offer service that’s not costing people thousands. I hope to see tmobile thrive with their new lte network.

  • mcdonsco

    I’m willing to bet this will be available on their share everything and unlimited plans…why not, if they can get you to continue paying the higher subsidized contract price for unlimited and tack on $50/month, why wouldn’t they? I only say this, because its verizon, the king of top dollar contracts.

    Right now I pay $120/month before fees/taxes ($130 after) for unlimited everything on Verizon and as soon as the s4 launches on T-Mobile I’m going to give them a shot (keeping my Verizon account until I know I’m not having issues) at almost half the price $70.

    If T-Mobile proves to be reliable in my area (Portland Oregon) then it will be goodbye Verizon forever.

  • FknTwizted

    2 things I see here that I’m not seeing others pickup…. 1 its a contract without calling it a contract, I’m sure they will make u “pay” the phone off before you switch no different than paying a etf, and 2 I didn’t see them not taking bloatware off of the phones. I am all for buying from the manufacturer and bring allowed to go onto any carriers service, in think that would create a better competitiveness between them and would allow manufacturers to update their devices without carrier intervention.

  • Pirarre Miller

    Is Verizon service plans that expensive? I had sprint and altough we could make calls, the data was horribly slow. We Switched to ATT and UScellular and they’re prices wasn’t that much of a big difference.. Maybe like $6-8 a month. T-mobile says they have excellent but we tried them and we didn’t have service at all in parts of our house or even near where we live and their service was nonexistent in certain parts of the city where we live. And They’re coverage map indicated that To Mobile had great service in my area. But they didn’t. I figure you get what you pay for.. Verizon may charge a little more but you get great service in most instances.

    I may take advantage of the payment plan to get a S4 or a HTC One variant, if one comes. However I wonder if they would allow you to completely pay the phone off when you want.

  • Guest

    Is Verizon service plans that expensive? I had sprint and altough we could calls, the data was horribly slow. Switched to ATT and UScellular and they’re prices wasn’t that much of a big difference.. Maybe like $6-8 a month. T-mobile says they have excellent but I we tried them and we didn’t have service at all in parts of our house or even near where we live and their service was nonexistent in certain parts of the city where we live. I figure you get what you pay for.. Verizon may charge a little more but you get great service in in most instances.

    I may take advantage of the payment plan to get a S4 or a HTC One Variant, if one comes. However I wonder if they would allow you to completely pay the phone off when you want.

  • t0ked

    I will wait to see what they do, but the photo above states “additional options” so I think this will be different payment plans in addition to their current pricing structure. But if they actually stop offering subsidized phones without lowering their monthly fee, I will leave. Either keep the subsidized/current price plan or stop subsidies and lower your monthly fee a similar amount. You can’t have both, VZW, not from me atleast.

  • WickedToby741

    It works on T-Mobile and others because the monthly cost drops as well. I know details are scarce, but I seriously doubt Verizon will be willing to drop monthly plan prices to support this like T-Mobile did. The monthly cost bakes in the price to pay off the device. If you’re doing this, its like you’re paying for your phone twice because you’re still paying the baked in monthly cost of the subsidy even if you aren’t using it. This is just a ploy by Verizon to make customers think they’re getting a deal like T-Mobile’s but really they’re just milking even more from their customers.

    I’m just waiting patiently for an LTE only Nexus for Verizon. One that Verizon keeps their greedy hands off of. It’s possible, but only without the CDMA radio.

  • Shaikh&GuestLoveMe

    Its only a good deal if you don’t upgrade on the 20th month of your 24 month contract. I would rather have Verizon eat my subsidy. This might be a good deal as the next gen unlocked phones may have LTE and Verizon will be an LTE network(Just like GSM phones are swappable). So LTE Nexus with Verizon LTE bands anyone??

  • Wow so people like me that sell their older models on eBay and buy a new phone at VZW (cause I ain’t rich and can’t pay FULL retail). They will now have the option to buy on “credit” (come on you KNOW they will do this even if you are an existing sub, checking credit), So as one person said here if 6 months down the line you decide after paying 6 payments you want a newer phone then you are stuck either with a new payment per month for the NEW phone and a payment for the OLD phone or they just say no. You buy one off eBay as some do now but you are still paying per month for a phone YOU NO LONGER HAVE!??!

  • No Chace in hell

    you’re going to have to pry my unlimited data plan from my cold dead hands

    • I hear ya! I use random amounts. I use 13 GBs. I’m not paying over $100 JUST in data!

      • What do you people do that gets you over 4GB? I’m just curious cause i surf everyday, use alot of data( i thought). Yall must live on the net.

  • wm snyder

    i’m down with buying the phone out right and off contract because i know this will reduce sales making manufactures reduce their price’s and possibly stop insufficient upgrades. i don’t buy into the propoganda that google sell’s their phone cheap because of eco system when i look at the billions manufactures’s are reporting.

  • chris125

    I think if they would make their tiers higher for the same amount of data it wouldn’t be as bad to lose it. I mean Why should I pay more for 2gb when(theoretically) I could leave go to att and at least get 3gb for what I would be paying on verizon? Not to mention the fact I could get ANY device I wanted and not hope they picked up a certain phone.

  • wm snyder

    bad ideal this won’t reduce manufacture’s price And keep carriers in charge!

  • Harry crumb

    Once you finance your new cell with Verizon the next question is what data plan would u like cause unlimited will probably no longer be an option.

  • So get an S4 using the payment plan, in a year sell it on ebay to pay for the S5….sounds like a plan to me.

  • Kevin Hill

    At one end I know their OP plans are there so they can expand quickly; I go most places in the US and I have a near full 4g signal. On the other end, I just want a cheaper phone bill.

  • Raven65

    Don’t think for a second that this will be a good deal for anyone except VZW. It’s all about the bottom line for them. Customers mean nothing to them but dollar signs. I bet they’ll charge double the average credit card interest rate for this financing – and probably slip in some additional hidden fees on top of that.

  • Venom12784

    My contract with vzw is up on the 25th of April. I’m trying to decide to stay or to go to the mobile last time I left vzw was for att and that was the biggest mistake I ever made. If vzw comes out with a plan like to bike where I can keep my unlimited data I will stay

  • teevirus

    If they are not talking about reducing the price of the monthly service then this is all kind of moot.

  • ostensibly

    TBH I don’t see much point in owing VZW for full retail instead of Citibank.

    • noc007

      All depends on who’s going to charge you interest.

  • CapnShiner

    @Kellex B: I think a reader poll might be in order. “If Verizon offers a contract-free plan with a lower monthly fee and a device payment plan but makes you give up unlimited data, would you switch to it?”

    • noc007

      If I planned on staying, the answer would be no. If they forced me on to their new plan, it’d force me to switch.

  • Detonation

    I highly doubt they’ll let you keep unlimited data. You’ll probably have to enroll in some new type of plan for this – which of course will not offer unlimited data. Hopefully it will be cheaper though, because if it’s not then the whole thing would be pointless.

  • duke69111

    I know the answer, but if I’m paying full price, my monthly bill for service should go down right.

    • EC8CH

      If that were true, Verizon would never do this…. but you already knew that 😉

    • Tim Proctor

      NO. It would stay the same. You onl pay for for service. VZW doesnt roll the other cost of the phone into the contract. They recoupe that money via the data plan that you MUST have. The fact is…if a phone cost $650 and you pay $199 up front, that still leaves $450. If you pay the data plan over 24 or 20 months, you pay $600 which is more than enough to cover most smart phones since tejh carriers makes you pay almost 1/2 upfront.

  • With them all of this is just a game. They comment about no contracts as if it matters (its not like you can just jump ship as the hardware is tied to the network) and with a payment plan it would be prohibitively expensive to just take off early.

    So unless they are giving real discounts with these plans they are really just in name only. Its not like I can do with the cheap T-Mobile or GSM MNVOs where i get a discount for bringing my own phone and really can just jump from carrier to carrier on a whim without needing to make a hardware investment.

  • RoadsterHD1

    i’d rather pay 300.00 on the Play store.

    • Tim242

      Me too…if and only when they put a good phone on there. The Nexus 4 is not that

      • RoadsterHD1

        Completely agree

    • chris125

      well that’s hard to do if you want a verizon phone…..

      • RoadsterHD1

        Damm you’re right I forgot they only sell the GSM versions. crap

  • The. Great. Cornholio!

    I guess the question here is, if you’re on “month to month” service, doesn’t that pretty much give Verizon carte blanche to eliminate unlimited anyway (not that they don’t have it now)?
    I mean, if you’re not under a contract, there’s nothing really keeping them from shifting customers around however they feel like it.
    The customer is locked in to paying for a phone instead of a contract. Sounds good, but I’ll have to see it in practice to actually judge it. But this “no contracts” thing seems also like a way to do what they want to month-to-month customers.

    • Tim242

      Their current policy is to buy full price to keep unlimited. I’m currently using a Note 2 off contract…

      • The. Great. Cornholio!

        Yeah me too, my last three were off contact.
        But we all know that we’re (unlimited folks) on borrowed time until VZW takes it away from us, the next month after they make the decision; which something like this will probably make happen sooner than later.

        • Tim242

          It wouldn’t make sense for them to do that. They get to double dip us.

          • The. Great. Cornholio!

            I guess in the grand scheme of things, how many of us are really left compared to the rest of the customers?

          • Tim242

            Yeah, I know. There are so few of us, taking it from us, nor letting us keep it will benefit them in the grand scheme of things. So, who knows.

  • RoadsterHD1

    So what you’re telling me is I could buy a “X-Phone” at 600.00 and pay 50.00 a month for 12 months and KEEP my unlimited plan? is that what you’re telling me?

    • Tim242

      X Phone? What’s that?

      • noc007
        • Tim242

          Sarcasm. I know what people hope it to be, but it is just a unicorn at this point

          • RoadsterHD1

            Some people just don’t get sarcasm LOL like Sheldon on “Big Bang Theory” 🙂

          • LMAO!!!

  • imns

    I have a feeling they are not going to allow people to retain their unlimited data…UNLESS we keep paying our current monthly plan and then add the phone cost on top of that. They just won’t let us pay less. In their eyes, it would change the terms & conditions of our plan (not contract) and unlimited data won’t be “compatible” with it.

  • PopeFrancis

    I’m sure glad I left the circus that is Vzw

  • Havoc70

    Wow they actually listened, is that a first for VZ?

    • noc007

      Wait till they actually implement it with any potential plan changes and/or policy changes elsewhere. This sounds great upfront, but a lot of people are expecting them to keep the current pricing, thus increase their profits and further rape their customer base.

  • BigWormBigPerm

    I feel like Verizon is trying to break up with me by making me break up with them…but as long as I have my unlimited data I’m going to give love a chance

  • Chris Hollenbeck

    T-Mobile is looking better and better…..

    • Tim242

      Until reality sets in. I tested them out for a month. I had to have my Verizon phone with me. I would feel so vulnerable with only tmobile.

      • Luis Sanchez

        @tim242:disqus Have you noticed a major difference in signal? I want to leave Verizon because I want to have Unlimited but I don’t want to cough up $600 for a phone. T-mobile signal freaks me out a little.

        • Tim242

          It may work for some, but not for me. I live in an HSPA+42 market. My address shows great coverage. When I turn into my apartment complex, it drops to EDGE. When I walk into my apartment, it drops even further to GPRS (1G). I have full signal though. Makes no sense. 5 minutes out of the city, all EDGE. The suburbs aren’t even all covered

        • ilovetechnology

          Unfortunately the only way to find out is to give it a try. I bought a Nexus 4 and actually found that at home and work I get BETTER signal with Tmobile. I have found a few dead spots around town, but nothing that’s a deal-breaker for me.

          • And the nicest thing about it is that with the introduction of t-mobile’s un-carrier plan, you actually CAN try them out.

            I will most definitely be doing this as soon as my verizon contract ends.

    • evileclipse

      Just make sure you take the time to try it out before you switch. Last October I dropped Verizon, payed about $200 in etf charges and switched to sprint to save $60 a month. Sprint showed they had excellent coverage in my area, but it was horrible! I could make a phone call anywhere, but mobile data was nonexistent. By January I was already running back to Verizon’s arms. I lost my unlimited and it cost me almost $400 out of pocket, but if I can’t use my internet connection, its not worth it. Now I’m back on vzw, happy as I can be, but it was a major waste of time. We’ve gotten spoiled with the rock solid connection, and to me its worth a lot more.

  • Jim McClain

    With interest I assume, i can remember when they did it with no interest, opps telling my age here

    • RoadsterHD1

      you mean “oops”

  • This sounds reasonable as long as you can do this and keep your unlimited data i would go for this maybe

  • verizon will probably use this as another way to say up yours to their loyal customers who want to keep their unlimited data plan and not allow us to use this payment plan.

  • droidrazredge

    Is this basically leading up to Verizon getting rid of contracts like T-Mobile and having an option for customers to pay on a month to month contract service ? Basically a full retail costing 700$ over 12 months would be around an extra 60 $ extra on top of your regular over the 12 months and not be in contract so you’re eligible to get newer phone more often. The only other thing that worries me is will you loose unlimited and be on a tiered data in order to take advantage of this monthly service ?

  • schoat333

    I guarantee they will still charge the same price for monthly service, and the payments will be on top of that. Double dipping? I would never put it past VZW.

  • EC8CH

    Can we just stop buying phones through carriers all together please?

    I mean that would go a long way in solving at least half of what’s screwed up in this whole system.

    • Nowai

      It would be interesting if they lowered plan rates, so they would disconnect your connection plan from your phone purchases

    • wm snyder

      Because then the carriers would play second fiddle and have to be competitive and won’t tell us what we can and cannot do…and no exclusive anymore… and possible updates happening faster

    • MicroNix

      I think the US is ready for purchasing their own phones outright. Give me a phone free from carrier apps, unlocked and unlocked bootloader. I mean seriously, who the hell with an Android phone uses VZNavigator? Is it really necessary to have it installed on my phone if there is no way in hell I’d use it even if it was the last navigation app on earth?

  • Yep

    So in other words, my current $80/mo bill, which is still the “subsidized phone” price even though I’m out of my 2 year contract, will shoot up to $120/mo and then come back down to $80/mo when I’m out of my device payment.

    So in essence, I will still be paying for a phone that I no longer use & paid off on the previous contract.

    Seriously, VZW, eat an aircraft carrier-sized d!ck.

    Lower my existing bill which is still technically paying the phone subsidy for my TBolt even though I’m past 24 months, and then we’ll talk. I’ll buy my full price device from anyone but you, since I can’t afford to give up your coverage and your “sodomize our customer base at all costs” approach.

    • J. Gilbertson

      Not sure I quite understand where you got your $40 figure. I would assume that if you’re already outside of your contract and/or already had the device for 24 months that would make you eligible for a theoretical new billing method that I hope would be lower than current 2 year contracts (since you’re not paying for the subsidy).

      • KewlDawg

        There has been nothing said about VZW lowering their monthly plan prices to subtract out the subsidy amount. It looks more likely the subsidy amount will simply become bonus profit.

        • joeedick

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          • WTF

            Da hell’d you jus say?

    • PetersonLords

      You hit the nail on the head. Basically, Verizon is double dipping with this. You get to not only pay full price for a new phone over time, but you also pay a $24 fee over time, and you are STILL paying a monthly bill that includes subsidies for your previous phone built into the price.

      This is beyond ridiculous. Verizon once again showing themselves as the money grubbing scoundrels that they are. At least with T-Mobile, your bill is reduced after paying off the phone. Screw you, Verizon.

      • Simon Belmont

        That’s pretty much how I read it too when I saw this. A lot of people don’t realize that the monthly bill they’re paying includes the cost of the phone they bought “cheaply” when they renewed or started a new contract. Even if you buy your own phone outright on eBay or Craigslist you’re paying for those subsidies in the bill. It’s really sneaky and it goes a long way towards making T-Mobile’s latest attempt at transparency almost refreshing. 🙂

        It also makes sitting on an expired contract without upgrading your phone feel stupid because you’re “paying” for a phone that’s already been paid off. Of course, if you want to keep your grandfathered unlimited data with Verizon, that’s the path one must take. The way these carriers put the thumbscrews to their customers stinks. T-Mobile is looking more tempting, but I worry about their coverage and I haven’t heard the most positive things about it from friends who use them. 🙁

        • darciematteau

          what Travis implied I am blown away that a student able to make $5465 in 1 month on the internet. have you read this web link — Gig60.ℂOM

        • Crystal Carey

          Lillian. I agree that Debra`s blurb is unbelievable, last wednesday I got themselves a Audi Quattro when I got my check for $8703 this last four weeks and just a little over ten-k lass-month. with-out any doubt it’s the best work I’ve ever had. I began this 8-months ago and pretty much immediately startad making more than $82, p/h. I work through this website,, fab22.comCHECK IT OUT

    • michael arazan

      I noticed that too when my D1 contract ended and I was shopping for three months waiting for all the new phones to release at the end of 2011, even though my contract ended, i was still paying the exact amount that i was with a subsidized phone contract.

    • bondsbw

      I’m not sure I follow you. If you are talking about suddenly paying $40/month extra for a phone that is past its 2 year contract, I don’t think that’s how it works.

      I think this will be an opportunity for new phones and perhaps for phones that are not yet out of contract.

      But indeed, all indications are that the base subsidized price will remain in effect. This could simply reduce your contract period, as an alternative to paying an ETF.

    • just bring back unlimted data for a good price and we will call it a day

  • Kyle

    I hope they announce this soon…I was considering taking my upgrade to get the S4 and lose Unlimited. hmmm now I must wait and see…..

    • droidrazredge

      Don’t bite the bullet! Keep your unlimited.

  • No more contracts?? I LIKE THAT!

  • Dave

    If that means they drop their monthly contract pricing, then I’d be all for it. But I sincerely doubt it.

  • ranlil

    If you would have to give up unlimited, I think it provides opportunity to other retailers to buy an a payment plan.

  • Mason Lammers

    This is why I love DL. Always on top of a story!

  • ranlil

    Yep.. gotta watch for the unlimited part… Otherwise, buy it from someone else.

  • Charlie

    I took this to mean if you want an upgrade but aren’t eligible for one they will finance a phone at full retail price for you. I hope they go the T-Mobile direction, but I didn’t get it from that picture.

    • This could very well be what they mean.

      • Charlie

        I’m still holding out hope that they’ll follow T-Mobile’s lead. I’d even pay a little extra to keep Verizon’s coverage. Either way I’m not planning on signing another contract. 🙂

    • That is what it looked like to me


    let you keep your unlimited?!?! HAHAHAH -Verizon

    • Tim242

      Of course they will let you keep unlimited. They get double payment from you.

  • Assuming they will honor grandfathered unlimited, they would be smart to introduce a program for getting new phones. Otherwise, we’ll all be buying new devices on ebay, swappa, etc, and VZW won’t have their hands in those profits.

    • J. Gilbertson

      Sad thing is they’ll still probably strip us of our unlimited plans one way or another. Considering you’re out of contract now they’re not contractually obligated to honor your unlimited data. Translation: “You think you’re smart, but we’re still going to make you bend over”

  • hmmmmmmmmmmmmmmmmmmmmmm. interesting, you had my curiousity, now you have my attention

    • nexusplay


      • Definitely Django.

        • dam right its Django. “I’m sorry, I just couldn’t resist”

          • ”You REALLY want me to shake your hand?!”

      • Austin Warren

        The D is silent.

        • nexusplay

          I like the way you die boy.

    • Austin Warren

      I’m curious what makes you so curious.