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Everything There is to Know About Verizon’s Device Payment Plan (Updated)

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Last week, we broke news on a new device payment plan that Verizon was planning to introduce on April 21. Since today is April 22, naturally that new plan is now live, so we figured a recap of the dirty details was in store. With upgrade cycles moving to 24 months yesterday, and 1-year contracts long gone, many of you will be looking to other options for upgrades, this being one of them. 

So here is the deal – qualified Verizon customers will have the opportunity to purchase phones or tablets at full retail price (greater than $349.99), but spread the cost of that device out over a 12-month period. The term “qualified” in this case means that a Verizon store rep has looked in their system and magically determined that you are eligible to participate in the program. Verizon has not released details beyond that, hence the “magical” reference.

Payments for the device are broken down into 12 installments, along with a $2 per installment finance charge. When you make your first payment, you also have to pay the finance charge. From there forward, your payments and finance charges will appear on your monthly Verizon bill.

You can pay off the remaining balance of your smartphone or tablet at any time. There is a maximum of two open installment plans per customer at a combined balance of $1000.

The device payment plan does not impact your current contract.

Update:  Verizon has confirmed to us that customers can use the Device Payment Plan as a way to upgrade phones while keeping unlimited data.

Here is the bulleted list of details:

  • Full retail priced smartphone or tablet price must be a minimum of $349.99.
  • Pay for the full retail priced smartphone or tablet in 12 payments.
  • Finance charge of $24, which is just $2 per installment.
  • Device Payment Plan customers can take advantage of Share Everything pricing and data sharing.
  • First payment, including $2 finance charge, due at time of purchase. Your next payment will appear on your next Verizon Wireless bill.1
  • Feel free to pay off the full balance of your new full retail priced smartphone or tablet anytime you want.
  • Maximum of two open Installment Plans per customer, subject to credit approval.
  • $1000 combined Installment Plan balance limit per customer.

Does this plan interest anyone? If anything, it’s a way to continue on with your unlimited data and then upgrade to a new phone without having to fork out the full retail price up front. Sure, the finance charge isn’t fun, but this is essentially like financing a phone after all.

Via:  Verizon

Cheers Jigga_Z!

  • Jules

    I will just buy a phone from places like Amazon Ebay etc. Do away with unlimited and expect me to pay them full retail ha!

  • Jules

    I will just buy a phone from places like Amazon Ebay etc. Do away with unlimited and expect me to pay them full retail ha!

  • bbrutcher

    Verizon can piss up a rope for all I care on this one! they runan actual credit check and if you don’t have an a1 credit score they reject you!! uhmmmm…hello dumbasses I pay my bill on time every month for 13 years and you ARE NOT putting an inquiry on my credit report for a stinking phone! just got off the phone with them and this is what I was told!

  • Kyle Daniels

    Think about this, it is $30 for a subsidiary phone upgrade charge, or with the device payment plan it is $24 for the upgrade.

  • Alix8821

    Can you “put down” money at the beginning? Like with cars. To help cut down monthly payments… Doubt it. But that’d help. Save up, put down 100-200,pay the rest off. Keep unlimited data

  • Doesn’t apply if you are on the “OneBill” program.

  • Soo… my contract doesn’t end untill next year ……… can I use this walk into the VZW store and grab a new phone w/ this new plan?

  • youdoneyo69

    So a friend of mine went to VZW to get the Note 2 using this program and they looked up to see if he qualified and he did. So he picks out the color and cover and blah blah blah then she does everything in the computer and he signs approving everything and….then the computer tells her he isn’t approved The worst part is that even they don’t know why or how you get disapproved.

  • Verizon told me that if I am eligible for an upgrade, I cannot do the payment plan. Hence, Now that I have upgrades available, I cannot do an upgrade or this program without losing unlimited data..:(

  • Simon Belmont

    Well, this sucks. Verizon double dipping.

    You get to pay full price monthly + $2 for 12 months AND your bill never reflects a discount after that phone is paid off. The cost of subsidizing continues to be built into your plan despite you paying for the phone outright. In essence, you’re paying double for a subsidized phone that isn’t even subsidized. Your only benefit is keeping your grandfathered unlimited data plan.

  • Note: this is in store only. Online and over phone can’t do it.

  • Hothfox

    Since the contract vs. no contract monthly plan payments will not change, I’d rather just go buy a phone from somewhere else for less and activate it on my line, avoiding the financing charge. This change would only make sense if they lowered your monthly plan after you finish paying off the cost of the device.

    The whole point of their upgrade/subsidy pricing is to keep you in your contract for 2 years to keep paying that monthly bill so they can recoup the cost of that “discounted” phone you bought. Once you aren’t taking their upgrade pricing, you can leave whenever you want, so I would have figured they’d give you a discount on your plan after you pay the device off to try and encourage you to stay on their network. Then again, what are you going to do with your CDMA/LTE device once you’ve fulfilled your debt? You can’t take it to another network.

    So, they effectively have most of their customers by the proverbial balls. They have the largest coverage area, which is a big deal for people who live in the middle of nowhere or travel a lot. AT&T pricing isn’t much better, with their MVNOs only topping out at HSPA+, which is nothing to sneeze at, but no one seems to offer 2GB+ data plans anymore unless you want to pay $60+ a month prepaid, at which point you’re almost back to the cost of a “real” AT&T plan which would get you LTE if you’re in a coverage area.

    I ought to just get a pager and say F it.

  • Chris Clancy

    Yea i have about 3 other lines for family members who could care if their phones had facebook or made toast. I will just let their upgrade cycles roll over and use them for my upgrades. Kthxbai VZW!

  • So, do you still have to pay the $40 smartphone fee ($30 for non smartphones) that Verizon has currently been using, on top of the monthly payment for the phone and the service?

  • spoonman

    Isnt this the same program that they have been running on tablets for months and is no contract for the same monthly as a 2 year plan plus the cost of the device Broken Up Monthly and a lower finance charge than the upgrade fee

  • Justin Hunt

    Why would I want to pay more on top of the fee that is already subsidizing a phone?

  • donebrasko

    Once I pay the phone off will they unlock the bootloader and radios?

  • Screw Verizon. I’m just gonna switch to Sprint.

  • LostMeNuts2MeWife

    Interesting thing if you have been late in your monthly bill in the last 6 months. Surprise you don’t qualify!!!

  • Alix8821

    Unlimited Data >>>>> Over paying for phone

    At least in MY case. Charges for going over would be 3x as bad (for me). Fresh out of school, using 4+ GB a month… When you add my usage, the weird monthly access charges, & the potential of going over data limit…. I’m ok with this. OBV miss the “good old days” (or, the “better days”) But, wateva

  • master94

    All I need to know is this is just another way for VZW to screw me over everyday.

  • Azilla or Syraz

    Push my upgrade date out, 12 month payment plan instead of 24…really starting to piss me off..wonder who has next best coverage here in Portland, I do like how tmobile is set up and the phones I could get for family

  • I don’t see how anyone sees this as a good change from how its always been with a contract.


  • @sb_81st

    I think it’s a gang of original GNexus users about to shop for phones in late 3rd quarter. Vzw is strategically trying to prepare for them. I hope the Nexus 4 cdma rumors are true… if so I’ll still make that my first option… Else test out this…

  • I’m going to stick to buying directly from Google for a Nexus. Please let the CDMA/LTE rumors be true and permanent from now on!!!! With the loss of real subsidized phones, I’m likely to leave Verizon for a GSM based company anyways. Likely just move to TMobile.

  • for anyone that’s been around shopping cellular plans for quite some time, it’s pretty “common knowledge” that the cost of your subsidized device is baked into your 2 yr contract’s monthly bill. This isn’t an idea recently suggested by tmobile. The pricing schemes and termination fees of the past decade or two clearly suggests this. I dont get why suddenly so many ppl are in such denial that subsidized cost is baked into the monthly cost. Look into any argument about device ownership rights in the past few yrs especially in regards to hacking your phone and you’ll see the ‘subsidized-under-contract-pricing’ point being thrown around.

    With the ETF alone, it was clear indication cost of device was distributed across your monthly cost.

    the cost difference of the device, and sometimes even plans depending on length of contract was also a very clear indication that the cost of device was spread out over your monthyl plan cost.

    Then iphones came along, and then soon after ALL smartphones were required to have a data plan. (it was optional on smartphones prior to iphone popularity – for those of us that had smartphones that predated the iphone). The excuse was it helped subsidized the cost of affordable smartphones.

    As I have always understood it for at least the past decade, your monthly bill includes the subsidized savings.

  • jayrod71

    Can you do payments for phones bought on-contract?

  • w

    Why would someone want to keep unlimited data – unless you listen to music all day or download videos share everything actually is less expensive – we are telecom consultants and can prove it

    • Stew

      Someone might want to keep unlimited data because $30/month is a lot cheaper than the Share Everything plans + data overage charges

      • Alix8821


    • jacob

      go on…

  • Le_Patrick

    Ah, so Verizon is starting to get into the banking industry. I always thought they had the perfect mentality for it.

  • Destroythanet

    If it’s not subsidized, might it well buy it upfront like a TV, computer, or any other type of electronic. No point in paying installments, unless you’re that strapped for cash upfront (in which case, don’t buy a new phone lol).

  • Hothfox

    The lame thing is, even if you buy the phone at full-retail price, you don’t see any discount on your plan. It’s like you’re still paying to subsidize a phone you already own.

    • BigRedguy

      Incorrect. There was never a “subsidy
      payment” included in the cost of their monthly plans to begin with. This
      is a farcical assumption. The monthly price plans are set according to
      overhead VS profits. When a subsidy is added in to the mix, there needs to be
      an agreement in regards to the DURATION of service because it will take even
      longer for you to become profitable to the company (Contrary to popular belief,
      they are not looking to merely break even). When there is no subsidy, there is
      no need for a duration agreement. I don’t understand how people get this so
      mixed up and skewed.

      • You’re incorrect. The prices of plans automatically included the phone subsidy. Fact is, Verizon just made more money when you didn’t upgrade with a discounted phone. The reason they are switching to this is so they can now charge you MORE money and thus increase their profits. Why do you think this new idea will allow you to keep unlimited data?

        I don’t see why anyone wants this. It will only increase their Verizon bill. Unless they announce later that their plans are all going to be decreased in price like what TMo did when they introduced this option.

      • Hothfox

        You are right, there never was any actual difference in price if you took their upgrade device pricing and signed a contract. Really, with Verizon, the only benefit to not subsidizing your device is that you can leave whenever you want. It’s Verizon, so they never will, but you would think they would offer you a plan discount if you purchase your phone at full retail without a contract to encourage you to stay. That’s what I think I was trying to say originally.

  • I’m confused. The reason I switched to T-Mobile is that without the subsidies for the phone I want to use tmo’s plans are cheaper than verizon. So now that Verizon is introducing this “Payment Plan” model are they also lowering their phone contracts by like $25/mo?

    • It’s designed to be an alternative. Think of the situation where say you didn’t have insurance and you broke your phone 7 months into your contract. You don’t have the 600-700 for a new smartphone. Instead you can pay for it monthly for up to 12 months and pay it off whenever you like. This is the only situation I could see myself using this… Except I have insurance…

  • They started this with the Galaxy Camera. That’s what I did. Finance charge of $30 for doing so. Monthly access of $5 and no contract is awesome. Can pay off at any time.

    • ddh819

      does the GalCam sim work in a tablet?

  • matt

    so upon reading this article i took it upon myself to try it out at my local Verizon store. when i asked the representative about it he said it was only available to devices costing more then $350 ,but at upgraded price. i asked him to repeat himself and he again said “the only phone that qualifies for that payment plan would be the note 2 because the phone exceeds the $350 limit at discounted retail price. went to another store and the young lady told me it was only available to tablets.

    • ddh819

      every smartphone should be more than $350 at full retail right?

  • SpikedRed

    I’d just like to say, THANK YOU to Droid-Life for breaking down a lot of this information in advance of what Verizon is going to do in the future. You’ve helped me make important decisions (except for that $%^^&* Thunderbolt purchase I made) that have allowed me to
    continue doing business with Verizon knowing full well what my options are.

    So far, I’ve kept the unlimited option (without it, I would be paying a helluva lot more, including another line that is a relative) and have locked in with them until the end of next year, on at least one of the lines. With that, I can say that with the exception (it’s really hard to let go, when you’ve done the business that I’ve done) of the issues with the one organization that will now remain nameless, I have NEVER had a service issue with Verizon in over ten years, and I have been from San Fran to Seattle to Maine, to Miami, to Ontario Canada, all while traveling in a car.

    With that, I’ve used phones by Sprint, and have people close to me have contracts with other carriers that get nowhere near the amount of signal strength, internet speed, and coverage that I have with Verizon. People may bitch about the costs with them, but in the end, you do get what you pay for.

    I’ll be more than happy to pay Verizon for an early upgrade on a newer device with the payment plan. A finance charge of $24 is still less than 6% of a phone that costs $399.99 or less. MOST people can’t even finance a car for less than 10%, and this is a cost that SHOULD be expected to be paid, in case people can’t afford to pony up the dough for their phone, for whatever reason. Think about it, you have to pay for return costs, pay more people who have knowledge about the payment plan (above and beyond everything else that Verizon offers), and still be able somehow, to make monies off of the phone. Best Buy sure as hell isn’t going to charge you less for this phone at one of their stores, now are they? As a matter of fact, most times Best Buy and other retailers usually are $50 more than the MSRP of the phone! Subsidies or no, I still go over 20 GIG A MONTH on one line alone, and have NEVER been throttled, or given notice about anything to do with using that much data usage, on average.

  • I guess the financing is cheaper than your average credit card, but our Verizon bill is already 230 bucks….I can’t imagine adding another 50 to it. I guess its a step in the right direction.

  • jonathan caruso

    Does anyone know if you caan use employee discounts (the same ones that give you discounts on your monthly plan bills) on the purchase of full priced devices through verizon?

    • Spider210

      short and only answer is no.

  • Jonathan Wow

    This is better than what was in place before. I’m okay with it. Though I would like to know what “qualified customer” entails.

  • Still doesn’t tickle my pickle. Moved from Verizon to an unlocked Nexus 4 with T-Mobile and don’t regret the decision in the slightest.

  • so what does qualified customer mean?

    • Prolly someone with more than a year on contract left.

  • So… The Samsung Galaxy S3 is $599 at full retail. Verizon is offering a $450 subsidy on the phone and a $50 online discount. At the payment plan rate you’re looking at a first payment of $125 and 11 payments of $50 for a total cost of $650 or $99 if you stay on contract. Unless they significantly lower the monthly cost of service when/if they do away with contracts then this is a real sucker deal for most people. Looks like I’ll be going to eBay for my next device.

  • $24 interest for 1 year on a $350 device? Isn’t that kind of a really high interest rate? This offers exactly no benefit over just paying full price for a device.

  • JMonkeYJ

    this has got to be the worst deal in history. but exactly what one would expect from Verizon…

  • duke69111

    Kellex, thanks for the update. Did you happen to ask if our bill decrease since we are paying full price for the phone?

  • PopeFrancis

    I love my $30 T-Mo plan!!

    • Tim242

      Along with your $30 coverage!

      • Famouz Starz

        Oh Snap!

      • PopeFrancis

        Nice try 😉

    • rodney11ride

      lol… its proportional to the square feet of coverage

  • >> Finance charge of $24, which is just $2 per installment.

    With a phone costing around $500, you are essentially paying an interest of around 5%. Double check your credit card’s interest rate before using VZW’s new payment plan.

  • ostensibly

    I looked at Sprint’s coverage map for MI, which I do every once in a while, and it’s still awful.
    I’m still OK with paying full retail on new phones to keep unlimited on VZW, whether the cost of subsidizing the phone is part of my unlimited package or not.

  • derek connolly

    I personally would rather sign a contract and pay $200 (approximately) for a phone than the 12 month payment plan. A phone at $699.99, like the Note 2, would be about $60 a month. That is too much of an increase just to not have a contract for me.

    • Bionic

      That is why im thinking they have to lower the plan cost in order to make this appealing

      • This is why I think they won’t do it, and why I didn’t sign the end-vzw-contract petition. People continue to misunderstand that ending contract may not always mean a reduction of your monthly fee because Verizon had never said that your monthly payment includes the subsidized phone’s cost.

        • Tim242

          You are the one misunderstanding the petition. If they eliminate contracts, they would be forced to remove the subsidy from the price.

          • Spider210

            That is where you Tim are incorrect, verizon would not lower the monthly costs if they went contract free…its another way for them to make money

          • Tim242

            They’re already contract free if you just buy full price. If you were correct, there would be nothing to change

    • Tim242

      It’s not so much about the contract. It’s about affordable ways to keep unlimited data.

      • JMonkeYJ

        you clearly have a very different definition of affordable than me 🙂 int his case “affordable” means double-paying for your phone (since there is no contract discount associated with not financing) and having to pay a finance fee for the privilege of double paying. unless i misunderstand this deal.

        • Tim242

          It is only deemed affordable for those of us that want to keep unlimited. It just gives us another option. I will just continue to pay it all up front, as long as finances allow.

        • rodney11ride

          dude.. you finance a fridge or a car or a house and pay out the A$$… its a typical financing situation. not sure why everyone says “this” deal is bad. lol

          • JMonkeYJ

            except with the major difference that you don’t have to pay 2x the price for your house, fridge, etc. if you finance it. finance charges aren’t necessarily terrible (altho they should be closer to 1-2% to be market rate), but the competition is charging 0% APR…so either way you slice it, comparing this to competition or other financed products, this is, indeed, a terrible deal.

      • Usty

        At an extra $50 a month for 12 months, you could tack on enough data where any normal to power user should be able to get by. People using ridiculous amounts of data per month obviously would still be affected, but anyone in the average range, say 3-5gb would have some cost benefit analysis to do, especially if they’re on a family plan already.

    • rodney11ride

      yet its only for 12 months… and you still have unlimited…

      • derek connolly


  • PSU_DI

    The only problem I have with this option is that Verizon’s Full Retail price is a markup to begin with. If full retail was 350-450 for a new device than sure this makes sense, but to have prices in the 600+ range, it just doesn’t make any sense to do this unless your desperate to have a new phone while in contract.

    • Tim242

      It is not about the contract. It is about affordable ways to keep unlimited. I will just pay full price up front. But, not everybody can do that.

    • Sqube

      Uh, just about all of the latest and greatest devices retail in the $500-$600 range. The HTC One Developer edition is $575 IIRC, An unlocked iPhone 5 (16GB) is $650. So I’m not quite sure what markup you’re talking about.

      New devices are typically $200-$300 on-contract.

  • so in an approximate idea of the money it will cost per month is $50+$2 for a $600 phone…. if they stretch it to a 2 year payment it will be more appealing at $25+$2 and they will make another free $24 in financing …

    • And you will then be better off signing up for a credit card with low promo rate to pay for it if you have good credits. At $48, you are paying about a 8% interest for a $600 phone. If your phone costs less, you will be paying an even higher interest.

  • Sean Bello

    The ability to finance will be contingent on renewing your contract, thus you’ll lose unlimited data. watch.

    • Tim242

      You would never be required to renew without subsidy. See update above.

  • T4rd

    I think I’ll just buy used.

    • Bionic

      F that, i dont trust a phone that someone else has used and perhaps abused.

      • T4rd

        I do if they’re from a forum I frequently use and they have good Heatware. Or use Swappa that provides you some protection against things like that. But if you buy from someone that has good reputation, it’s hardly an issue.

        • Bionic

          True enough, but I like to have the latest and greatest and know everything that I have done to the phone, not other people.

          • T4rd

            Well you get to pay a premium for that then ;-). I don’t mind waiting a couple months to find a phone for considerably less than retail that may or may not have a couple blemishes on it. I’ll have a case and screen protector on it anyways. Most repuatble sellers will tell you exactly what the phone has been through too.

      • Detonation

        My last 3 phones have all been from swappa or ebay and have all worked like new. Yes there is still some risk involved, but if you wait for reputable seller that gives a lot of details about the phone and it’s use, you’re likely to get a good phone. A lot of the people on swappa are from these communities are just selling their phone to have to next latest/greatest.

    • rodney11ride

      Dude i was on the toilet yesterday playing Extreme motocross…. you want my used phone? lol gross.

      • ddh819

        maybe i will only buy waterproof phones so i can wash that ish

      • T4rd

        Sure, I’d take it. Nothing some Lysol can’t fix. You’re pretty much getting the same contact when you open the door to/from the bathroom ;-). I’m not a germaphobe by any means anyways though.

  • jamie stevens

    what do you guys think these payment plans will do to the value of the phones in the future…..think it will raise or lower used phone prices?

    • Bionic

      Raise them, because there will probably be less bad ESN numbers out there

  • bbrutcher

    my husband and I will be jumping all over this for our s4’s! get to keep our unlimited data and not have to fork over 1300 or 1400 at one time!

    • Bionic

      You do not know for certain you keep unlimited, Kellex said he was looking into it

      • bbrutcher

        well we are still under contract so hopefully that means we can. if not better start saving our pennies I guess!

        • Bionic

          Same here, I am still unlimited as my contract isnt up until September so I am very curious about this as well.

          But this is verizon we’re talking about so im not optimistic.


    If this will let me keep my unlimited data, then this would be my only other option, besides craigslist.

  • Bionic

    After pulling out the calculator I dont see this being popular unless they lower the cost of their plans to at least SOMEWHAT offset the cost of the phone per month.

  • Radgatt

    I wouldn’t mind paying an extra $62-$64 per month for a new phone if it means I can keep my unlimited data. And it will only be for 12 months at the most. I don’t see anything wrong with it since the network is great.

  • jb

    My rectum started bleeding just reading this. Wow, they didn’t follow in T Mobiles footsteps at all.

  • Loc-Nar

    All they have done here is allow you to buy the freaking phone, meaning you have no contract. Again, what really needs to come down are the costs of the PLANS. and I agree with RW-1 who posted a while ago – Plans need to reflect that VZ and other carriers fall into the UTILITY category, just like water, electricity and mainstream broadband internet – Pay for what you USE each month, not some f**k’s estimation. We need the plans to change, and to be more realistic in cost. All that you gain here is that they invented a purchase plan to allow more to buy off subsidy/contract, nothing more than that.

    • Bionic

      While I agree, good luck with that. The same applies to home internet but we dont see that changing anytime soon.

      Verizon will continue to screw us.

  • Alan Burnstine

    Two reasons this interests me. 1) If I can keep unlimited data without shelling out $500+ all at once for a full retail phone. 2) I can feel more comfortable about not carrying insurance on my phone. I haven’t for years because I always have a spare phone or two sitting around, but to be able to get the latest and greatest without breaking the bank if my phone takes a swim is attractive.

    • Could you point out to me where does it said that they’ll will give you a new phone if yours take a dump?

      If you have to finance a freaking phone, you’re living beyond of your means. I would recommend buying a cheaper phone.

    • But you’ll still end up paying the full $500+/- for the phone that takes a bath and then it’s useless and time to pony up another $500.

      Plus it’ll be interesteing to see how they handle the financing then, or when one defaults.

      • rodney11ride

        my 6.99 insurance and replacement deductible is 75-150$. so if you prepare for it is very unlikely youll have pony up after a damaged phone.

  • EC8CH

    “Device Payment Plan customers can take advantage of Share Everything pricing and data sharing.”

    Sounds to me like VZW’s way of saying you MUST take advantage of Share Everything pricing and data sharing.

  • FLHC

    Will they be lowering their plan pricing? If not.. we’ll be paying for a subsidized phone built into our plans ON TOP OF this payment plan for a unsubsidized phone.

  • Bionic

    X phone installment payments FTW

    • John

      Not real. Stop kidding yourself man.

  • mystikalrush

    Only worth it if full price was actually reduced to $349.

    • Bionic

      not in a million years

  • Bionic

    If anything it makes it easier for people who dont have the $199 up front at time of upgrade.

    But screw you verizon, you suck.

  • Frank Fiorta

    If they let you keep unlimited, I like this. I have no plans to switch carriers in the future. I have friends and family with every other major carrier and frankly they do not measure up. So unless one of the carriers make some major change in their service, I will be going this route as I was going to probably pay full price anyways.

  • Jeff

    If I really wanted a new phone and keep my unlimited plan.. I say H*ll yes!!!

    • mrjackson

      That’s the only good point about this, and might end up being what I do eventually. Where it would really make sense is if they separate the phone payment plan and the actual service plan and reduce the service plan accordingly. But we all know that will never happen.

  • EraserXIV

    Shouldn’t they lower your monthly service rate if you choose to do this because the subsidizing of the phone is built in?

    • Chris Phillips

      You’re basically putting the phone on charge. They still have subsidized phones, which most people will still purchase. This is for those with unlimited data or someone who buys a free phone then realize how much it sucks.

      • The point is their monthly plan rates include the subsidy for the hardware so now you are paying full price for the phone and continuing to pay the built in subsidy as if you didn’t pay full price for the phone.

    • Bionic

      my thinking as well, since T mobile does this

      • michael o’brien

        I just priced out T Mobile…and it is the same price per month with their monthly phone charges as my Verizon services are. T Mobile is still selling you the phone at a subsidized price. They are just making you pay the full price if you leave early, instead of a cheaper price if you leave earlier. As stated before. ETF depreciates at $10 a month. So if you terminate your service at Verizon, you end up paying less also.

        • Jon

          Your suggestion that T-Mobile cost the same is just incorrect. My family of 4 left Verizon for T-Mobile and we are saving $90 + per month. I particularly enjoy the better device selection available on T-Mobile as well. You can buy any recent AT&T phone as well and they work on T-Mobile. Now if I had to travel a lot I would have stayed with Verizon. T-Mobile has been great for my family in Los Angeles. Also with T-Mobile there is no chance of overages. One bad month of overages on Verizon gets expensive very quickly.

          • rodney11ride

            What overages? we are talking about unlimited talk text and data… geesh who is limited anymore… you your kid is gonna talk a load and text even more.. anybody walking around watching there limits needs to give up that damn breakfast burrito every other day to put towards there cell plan. lol

          • Jon

            OK so tell me what is the cost of unlimited everything on Verizon? For 2 lines on T-Mobile its $120 unlimited everything. That goes down to $100 for two lines with 2.5 gigs of 4G and then unlimited 2G afterward. Are you telling me that Verizon has prices in that range?

        • Le_Patrick

          I highly doubt that

        • Go back and have somebody with the math skills of a ten year old help you.

    • duke69111

      They most likely won’t, but they should. If I paid full price for my phone, it would be nice if my bill dropped roughly $300-$400 total over a 24 month period.

  • Jarrett Hickman

    But does doing it this way allow you to keep you unlimited data?

  • zepfloyd

    It’s probably not worth 12 full monthly payments plus finance, but at ~$600, doing 300 and 300 and getting rid of it in 2 months for $2 probably lightens the burden for many, unless your credit card interest is really low or some 0% intro thing…which if that’s you, you’re probably in a position to just buy it outright at once anyway.

  • Same BS from Verizon. No one cares or want theses new features, just give us unlimited data!!

    • rodney11ride

      Why dont you have unlimited data now?


    So it seems Verizon found a way out of the argument that “because we’re not subsidizing our phones anymore our bill should be lower.” In typical Verizon fashion that means offer another option that costs more. I’d be OK with this if monthly service was cheaper. But now you’re paying a lot more for the same thing.

  • So with this you can keep unlimited data?

    • EC8CH

      “Device Payment Plan customers can take advantage of Share Everything pricing and data sharing.”

      I’m guessing “can take advantage” is VZW speak for “must take advantage”

  • Manny

    Verizon just found another way to squeeze more money out of a customer’s pocket…Tmobile here I come. !!!!!!

    • Frank Fiorta

      It’s the same thing T-Mobile does, only 12 months shorter.

      • Manny

        yeah but t mobile is not screwing you with the share data bs..

      • moelsen8

        No, not really. The key is separating the service/device costs. This is just kind of pointless.

  • RaptorOO7

    All I know is they are NOT including a free bottle of lube before they screw you. There is no benefit in buying a CDMA phone any longer, wait until 2014 and get an LTE only device on Verizon since that is their end game.

    They have stated they will go this route to reduce costs on devices and move to a full LTE network. Of course that will take years but maybe if you have an LTE only device it will cover more bands than just Verizon’s.

    • Manny

      hahahahha the lube is an additional.8.99 a month

  • ImmaDroid

    Life at Verizon is just getting way too expensive now a days. Im trying to hold on to my unlimited data, but is it even worth it anymore?
    Every tower up an down the coast by me has LTE, except the “one” by my house. Yes its the only one, So Im always on WiFi.. $170 a month for 1400 mins, one data plan, one basic phone.. Worth it?, I dont think so anymore

    • Ian Winchell

      Thats odd, mine floats right around there but i have 2 smartphones on unlimited data, one of those have the 500 text option (the other none) and 1 basic phone, with the same 1400 minute plan. i guessing if i had your setup i would come in around $120 or so, thats weird.

      • ImmaDroid

        I have unlimited texts on both, doubt that would make a difference of $50. The one doesn’t even have a data plan, so I just have one data plan. It just seems like way too much for what I have. Should be like $120

  • Benito Wood

    Buy a phone full price from best buy with their credit card and you can have 18 months to pay it off without any interest.

    • dodger55fan

      With their credit card…

      • Yes, but there’s essentially no difference between Best Buy’s credit card and Verizon’s new line of credit (except of course Best Buy will provide 18-months no-interest financing).

        • Shane Milton

          Getting their credit card is a hit on your credit. Sounds like VZW doesn’t hit your credit. That’s very important for some. No way in hell I’d let Best Buy hit my credit!

          • Tirionfive

            Not only that, Getting approved for Best Buy credit cards is impossibly hard.

          • I was a college student and got my card from them. However, right now I have my Black Friday haul on there same-as-cash so no new phone for me that way… but I agree, this is the way to go if you can get them to price match Verizon’s retail. (Usually it’s higher w/o the price match for most phones.)

          • bkosh84

            Did you not read the part where Verizon bases this on running a credit check?

          • bkosh84

            Also, having a Best Buy credit card doesn’t effect your credit score negatively unless you miss payments/pay late.

          • Still hits your available vs open credit lines. Any “look” to your credit does hit you (albeit not very hard) but when you start using more than 40-50% of your credit line this does negatively impact your credit (amount varies based on history/total credit/capital assets/etc obviously). As a general rule you don’t want to be using more than 50% of your open credit line for any extended period of time. Obviously missing payments/paying late will hurt you far more.

    • Lazaretto

      So you’re so against the $24 charge you would go to Best Buy and pay $100 more for the phone?

      • Benito Wood

        You can still price match phones that are full price. So same price, extra 6 months to pay? I’m just giving people options.

        • will bartlett

          no best buy would let me pricematch off contract price. please enlighten us on how to do that.

    • LionStone

      That’s good, except BB phones are usually $100. more than at VZW.

  • Tirionfive

    This interests me. Even at contract pricing, I’d like to keep my unlimited data. I am a habitual phone swapper and this would greatly benefit me.

  • Austin Warren

    Finance charge? Greedy fuqs

    • Ian

      Ever borrowed money before? Usually costs a lil somethin’

      • I’ve borrowed from T-Mobile before..

      • Austin Warren

        Nope. I have good credit. Never worried about that.

  • TurdFerguson1

    F that…looks like I’ll be heading over to Sprint where they actually have unlimited data.

    • Austin Warren

      On a trash network.

      • TurdFerguson1

        Verizon sucks balls up here in Northwest WA. Some people I know have Sprint and say it’s better. May even go to T-Mobile…..but may just stay with Verizon 🙁

    • What’s the use of unlimited data when it’s barely useable?

    • I left Sprint because unlimited data is pretty meaningless when you’re getting 56Kb/s modem speeds. I’m happy at T-Mobile where i’m averaging 15Mb/s down/2Mb/s up on HSPA+ on my unlocked Nexus 4, with no contract, unlimited data, and 2.5GB hot spot for $80/month.

  • T-Mobile’s model is better since you get to pay it off over 24 months instead of 12 months, and if you have good credit, there’s no finance charge. Verizon apparently never got the memo that if you’re going to copy your competition, you should usually do it better or cheaper. Fail.

    • Shane Milton

      T-Mobile’s is MUCH better because you get a discount since your plan isn’t subsidizing a phone. VZW is screwing you because you’re still paying the same prices as if you were subsidizing a phone.

      • Bionic

        maybe, perhaps the May announcement is them lowering their plans. We can hope.

        • wufilesolen

          my classmate’s sister-in-law makes $71 every hour on the internet. She has been unemployed for 10 months but last month her pay was $18766 just working on the internet for a few hours. Read more on  Jive8.c­om

        • master94

          lol good one. VZW lowering plan prices.

          • michael arazan

            If they were going to lower plans we probably would of heard about it on April 1st

      • vzwuser76

        The difference between T-mobile’s plan and Verizon’s is you’d use this WHILE you are under contract to get a new phone. Now you could always get a new phone during your contract by paying full retail price. The difference here is allowing you to not have to to pay it upfront in one lump sum, but in installments over 12 months. Now for those like me still clinging onto unlimited data I don’t know if after my contract expired I’ll see a reduction in my plan costs. Verizon has never done that before so since they haven’t mentioned it I doubt we’ll see it anytime soon. But at this point this plan is for people who want a new device WHILE under contract.

      • troy studnicka

        Who cares, their service SUCKS!! Verizon’s 4G is superior as well as their coverage!!

        • Daistaar

          With each passing day, their 4G superiority becomes moot. Other carriers are now offering LTE which should only get better and HSPA has proven more than resourceful. Now the coverage map is still a different story…

          • NIGHTSCOUT

            Other carriers LTE has 10% coverage of what Verizon has, so take that FUD somewhere else…..

          • shadowdude777

            I don’t think you know what FUD means…

          • NIGHTSCOUT

            FUD: Fear, Uncertainty and Doubt. Also known as scare tactics, either accomplished by threat or making the opponent doubt his standpoint. Not only used in lawsuits, but also in politics and military propaganda.

          • kg215

            But coverage maps is the whole point. Yes in pure speed other companies have caught up, in some cases in low usage areas they can beat Verizon in raw speed but their coverage is a lot smaller and sometimes a lot crappier even when it works. I would love it if everyone caught up to Verizon’s coverage, Verizon is extremely arrogant and greedy but it’s not worth leaving them unless other carriers improve their coverage. Also those of us with unlimited grandfathered into Verizon obviously wanna keep that too.

          • Daistaar

            Maybe it’s because I live in a city where all the carriers have a very good foot print that I don’t see a difference in the coverage? That and all travel takes me to good coverage zones for most carriers. I guess if you’re in the sticks (or nightscout’s backyard) you’re more locked down to whoever’s coverage blankets your area.

          • Josh Nichols

            Obviously the coverage in a city is going to be much better. You must be incredibly sheltered or never even go out to suburbs to think “the sticks” is the only place that some carriers have bad coverage.

          • 2 years later, even though I hate how they do business Verizon is the current Pioneer in rolling out next gen tech

          • Bill

            Where I live, T-Mobile service isn’t even offered, while I can get Verizon 4G LTE. This is a big advantage for Verizon, as this is common in many places.

          • Josh Nichols

            Not really. Verizon still has more coverage than T-Mobile by an extremely large margin, and more coverage than AT&T as well. Sure EDGE, UMTS and HSPA are faster than EVDO and 1xx, but Verizon (Sprint to a lesser extent) offer better building penetration because of CDMA technologies.

            Also if we want to talk about LTE, Verizon’s LTE coverage far outclasses everyone else in North America in terms of coverage and likely backhaul as well.

          • Jeremyvbk93

            The verizon coverage map is very deceiving. A lot of their LTE coverage is “extended” And every place I have gone with extended coverage is always 3g, not LTE, and that is 95% of the time. And I know for a fact, ATT has a better backhaul system, hence them running HSPA+ and LTE, needing more backhaul. And the building penetration Is something I can say is not the truest. I have had better luck with ATT with building penetration, better call quality, and better Data.

          • Kyle Daniels

            At&t is dropping HSPA for LTE, and this is not for those on share plans, it was for the unlimited to give them a more feasible way of upgrading without loosing unlimited.

        • i agree. T-Mobile isnt good at all. Verizon is pricey as hell but worth it at the end.

        • Richard Yarrell

          Verizon is EXTREMELY overrated and overpriced the perfect carrier for bloatware filled altered devices with comical cosmetic graffiti. Pretty much a sad conclusion in the carrier game.

          • squiddy20

            As if none of the other carriers (including the “all-mighty” T-Mobile) don’t put out “bloatware filled altered devices with comical cosmetic graffiti”… What a f*cking hypocrite.

          • Dude, I saw that guy Richard Yarell on youtube, people were commenting asking him if he was the guy who got banned from phonearena,gsmarena, and phonedog, he’s just a troll, pay him no mind, he has no clue what he’s talking about.

          • Simon Belmont

            Yep. He is that guy.

            He’s got a hard on for T-Mobile and Samsung products. He’ll stop at nothing to badmouth anyone/anything else.

          • I’ve noticed. He’s obnoxious!

    • John Sullivan

      Don’t forget T-Mobile also gives you a less expensive plan to go along with the fact you’re buying the phone at full retail, something Verizon conveniently forgot to do

      • Well to be fair, Verizon’s network, in terms of pure quality, wipes its @$$ with T-Mobile’s. T-Mobile could never get away with charging what Verizon’s charges because their network isn’t nearly what Verizon’s is.

        Verizon has LTE in places where no one else will for years, 3G just about everywhere else, and has coverage in some form almost everywhere that people actually live. T-Mobile’s network is awesome in metro areas, but a good 80% of their network is still 2G and there are major holes where your phone will roam on AT&T, who treats roaming traffic like a 3rd class citizen.

        No matter whether you like their business practices or not, the fact remains that Verizon has the single best mobile network in the United States. That’s pretty much indisputable. You going to pay top dollar for it, but if you need a reliable, decent-speed data connection damn near anywhere you are, Verizon really is the only choice.

        • Bionic

          Wipes its butt for now, wait 2 years and see. T mobile is currently refarming and rebuilding. If you are a T mobile customer now and get 2G (EDGE) you will get HSPA+ minimum once they are done refarming.

          • There has been no official confirmation of that. T-Mobile will not put HSPA+ on the current 2G sites unless there’s profit potential to be gained from it. T-Mobile is too small and they don’t have the money to be going around doing a Verizon-scale upgrade of their network. The “network refarming” is just a marketing term for adding 1900 MHz HSPA+ in markets where there’s a high concentration AT&T iPhones on T-Mobile’s network.

          • Bionic

            Look up the parent company of T mobile. Technically they are the 3rd biggest cell company in the world, bigger than Verizon.

            T mobile has no debt to speak of and tons of cash. I have friends out west who are already seeing the EDGE turn into HSPA+ not to mention the LTE rollout.

            Give it 2 years and T mobile will indeed rival verizon if they keep to their plan.

          • I certainly hope you’re right, but color me skeptical at this point. I’ve been a T-Mobile customer since 2001 when they were still VoiceStream. I’ve seen the network grow and evolve over time. They’re going to take on a huge debt with the MetroPCS merger.

            I have a Galaxy Nexus and Xoom both on Verizon and a Nexus 4 on T-Mobile. As much as I’d love to take my N4 with me when I go on road trips, the 50 MB of data roaming kills me because you can burn through that looking for a restaurant for dinner. So, locally I always keep the N4 on me but when I’m outside my home area, I only bring the Galaxy Nexus since know no matter where I am, I’m covered.

          • PhoenixPath

            In two years, VZW will be rolling out IMT-Advanced, and T-mob will still be rolling out LTE.

            That said, I’m still switching to T-Mob once the X Phone comes out. The only way T-Mob is going to catch up is if they get more subscribers/more money.

            (May not actually get the X Phone, but will be able to try X, One, S4 in store…all at the same time. Worth the wait for that alone.)

          • How much do you think Verizon will accomplish in those 2 years?

          • kg215

            getting HSPA+ in two years doesn’t sound appealing at all, and getting only 2g right now is just awful. By that time Verizon will have 4G everywhere they have 3g and will be working on 5g.

      • Bionic

        so far as we know anyway, as Kellex said, this information is still very very raw

      • Warning if porting into tmobile
        they are screwing up the ports and your phone service will be off for a few days until the new handset arrives (I would have attached my blog post but the admins here block urls)

    • T-Mobile’s model is better because they want more customers. They need to get the memo from Verizon to have a better network. T-Mobile could give away phones and people would still choose VZW no matter how horrible their business practice is.

      • Exactly correct. If you live, work, and generally stay inside metro areas, T-Mobile is fantastic. If you live in the sticks, T-Mobile is probably your last choice.

        • HTC1

          You are almost 100% correct Shawn But you
          keep saying “T-Mobile is fantastic in Metro areas”. That is where you
          lose me. They suck in all areas. I can’t believe all the T-Mobile love in these
          posts. T-Mobile sucks everywhere!!!!!!! I’ve had it and traveled the country. I
          don’t work or like VZW. But call a spade a spade. T-Mo is the absolute worse there is. one step below AT&T which is also disgusting. They are both
          decades behind and will never catch up. Now if you said “T-Mo will rarely
          but sometimes work in metro areas” I would agree with all your statements.
          But the ‘fantastic’ quotes loses you all credibility. I live in the second largest city in New England. Had a T-Mo phone a few years back and had to drive 5 miles down the road to get one bar and try it out. How is that Fantastic Metro service?

          • Now I’m curious, what problems do you have with T-Mobile in metro areas? In my experiences, their HSPA+ coverage is perfectly fine where it exists. They never drop calls, data speeds are consistently fast, and that’s all I really require from a mobile network. Most of my 10 years with T-Mobile was spent in Providence, RI and I never had complaints. I’ve lived in NC the last year-and-a-half and no trouble here either.

          • jahsoul

            Well, I can tell you this. Verizon sucks in NW Austin. :-(. I went from 4 bars constant in Montgomery to 2 bars and 3g when I moved here. Sprint and T-Mobile are the best choices here. I’m still holding on to the unlimited 4g tho..lol

          • Brian Barcus

            When you say all areas you obviously are excluding the St. Louis metro area. I have been using my N4 on T-Mobile for three months and have coverage equal to Verizon with better speeds than Verizon. I have taken both my phones (Verizon and T-Mobile) into places where Verizon coverage dropped to 1x and T-Mobile was getting 3G and HSPA+ in the same places.

            I rarely travel out of my home area so T-Mobile is a much better choice.

        • Lam

          Hmm.. I live in San Jose, California. Pretty much one of the largest cities in California. When I had T-Mobile, it was horrid. Their 4G data speeds were slower than AT&T 3G/HSPA+. I’m usually the friend who has no service when eating in a restaurant, etc. Whats the point of unlimited when I can hardly look anything up online.. I’m now on Verizon’s network and it blows T-Mo out of the water. No reception problems whatsoever.

    • MichaelFranz

      I agree, but when it comes to coverage, you almost have to say yes to VZW at the moment

      Edit: Unless you are in a metro area where tmobile is decent

    • troy studnicka

      Who gives a crap what t-mobile or what anyone is doing!!!! They are inferior to Verizon as far as service AND 4G….they don’t compare!!!
      I don’t have any problem forking out a little extra for the best network and to keep truly unlimited data!! Not some fake unlimited data which throttles you after 2 gig like the other companies do!!

      • kg215

        Those of us who have unlimited in Verizon are obviously in a good position. Of course I wouldn’t say we only pay a little extra, we pay plenty. It is definitely a get what you pay for situation right now though because of coverage.

    • Carlos carrasquillo

      is it really gonna take u a year to pay off a phone?

    • This plan is for people who have poor credit and don’t have a decent credit card. Those people will want a subsidized phone. So this payment plan is pretty much for no one.

    • Richard Yarrell

      Another classical way for Verizon to RIP OFF current customers. Boy they really think they are slick. Rest assured current customers who can DUMP VERIZON will dump them soon.

    • Verizon? Cheaper? Excuse me?

    • youdoneyo69

      Why complain? At least they are even offering something like this. They honestly don’t have to but they are. As a Unlimited Data person who has to pay full retail from now on I am glad that they are at least giving me some kind of option other than pay $500+ up front. Also they are a business which they have to make money and if you are buying a phone at full retail $2 a month isn’t gonna kill you.

  • This is appealing if you need unlimited and can’t afford a full-priced new phone. I think once they kill-off unlimited for good, this becomese even less appealing.

  • since I didn’t want to lose my unlimited data upon my next device purchase, I was planning on paying full price for my next phone so this isn’t too bad of a deal.

  • I’m betting they won’t let you keep unlimited on this plan. Will be interesting to see though.

    • I hope not… Im planning on getting the S4 this way…

      • Austin Warren

        Just wait for the X phone

        • Ive been able to upgrade since last month…. Im just looking to have good resale value for the Note3 or the Xphone. Whichever comes first and/or impresses me the most…

    • It’s a little murky because they say you can do this device payment plan before your contract is up, so if you just continued on with unlimited past a 24-month contract period, does it still apply? I’ll try to find out.

  • Mike Mullin

    will this be like t-mobile where your monthly payment will decrease when the phone is paid for? somehow, I doubt it with VZW

    • JoshGroff

      The monthly payment stays the same, you just stop paying per month for the phone. Just like T-Mobile.

  • Have we confirmed that we can keep unlimited if we do this?

  • John Malin

    If I do this will my bill go down since I am not paying for the subsidy?

    • JZ

      Not unless they change the price of their plans.

    • Austin Warren

      Hahahahahahan its nice to wish every once in a while.

    • Mikey Styles

      This is VZW buddy hahaha…..hope this was completely in a sarcastic manner Lol. It should bring cost of our bills down since they aren’t totally subsidizing like b4 but as stated previously “This is VZW” we’re talkin’ bout here.

    • ha, good luck with that one. this is the one major flaw with this plan. all sounds decent until you look at your current plan from the carriers perspective.

    • Keith Black

      Holy crap, there is not a subsidy charge built in to the plans. You are paying for services rendered. I see that statement all the time on this blog and it’s absurd and completely incorrect. If this is the case, then T-Mobile is making you pay full retail without lowering their plans too, but I don’t see anyone raising pitchforks at them! Their monthly price plans did not change, and rightfully so. Just as Verizon’s monthly price should not change just because you pay full retail. Now let’s break down the actual DEVICE COST with each carrier and I’ll show you why your “horrible” contract was saving you money, people are morons for wanting “no more contracts”:

      ~High end smart phone on T-Mobile:
      – $100 up front
      – $20 added to your bill each month ON TOP OF your price plan for 24 months = $480. (This is a finance agreement, thus you are contractually obligated to pay the full $480 regardless of how long you retain service… wait whaaat, a contract? Hmm. I thought we were “Un-carrier”-ing) $100 + $480 = $580 that you pay for the equipment regardless of how long you keep service.
      1 month = $580
      12 months = $580
      16 months = $580
      24 months = $580

      High end smart phone on Verizon:
      – $200 up front
      – No additional charge on your price plan, but rather an Early Termination Fee if you cancel service; which starts out at $350 and reduces by $10 each month. $200 + $350 = $550 or LESS that you end up paying for the device depending on how long you keep service.
      1 month: $200 + $350 = $550
      6 months: $200 + $290 = $490
      12 months: $200 + $230 = $430
      18 months: $200 + $170 = $370
      24 months: $200 + $0 = $200 (No termination fee, contract fulfilled).

      T-Mobile is charging you MORE for a phone while keeping their price plans the same. Verizon is charging you LESS for a phone while keeping their price plans the same.

      • noc007

        The existing plan costs subsidize the phone. T-Mobile didn’t really change their rates with their UnCarrier announcement because they had already been doing it for at least a couple of months. One could go with their Classic plan at a higher rate with a subsidized phone or one could go with a Value plan at a lower rate while paying full price for a phone or BYOD. This is still true today after the UnCarrier announcement, but the Vaule plan is exclusive to their website and stores while the Classic is available only through Authorized Retailers and possibly corporate discounts.

        • Keith Black

          I don’t even know where to begin.. this is giving me a headache. Your facts are way off.

          • noc007

            Would you like me to provide screenshots? You’ve obviously been drinking the VZW Sales Kool-Aid.

      • ProZomby

        And WHY do you think the ETF is there, and is more expensive for a smartphone? It’s to recoup the costs they’d normally collect for the phone over the term of the contract.

        Lets follow the supply chain. For example: HTC sells a phone to Verizon for say… $400 + 50% typical retail markup (don’t know if this is the markup for phones) = $600 full price for a phone.

        If someone buys that phone full price, Verizon pockets $200. If Verizon sells that phone on-contract for $200 to the customer, they are out $200 they owe HTC, and since they’re for-profit, they’re going to say the $200 they’d normally pocket is also a loss, for a total loss of $400 on a sale of a on-contract phone. A loss they’d make up with the ETF, or optionally with the realistically approximately $15 of the monthly price of a contract that is probably put towards the phone.

        With Verizon’s payment plan, you’re still paying that built-in price. You’re paying twice for a phone.

        • Keith Black

          Your math is based off assumptions and not even close to the actual figures. I can tell you this for a FACT. You just blew my mind. I don’t even know what to say… Please scroll up about a page-length and read one of my other posts.

          • ProZomby

            You’re right; I was using rough estimates as an example. I don’t work in the industry, and most of the numbers are not public information, so all we can do is make educated guesses based on logic. If the price of the phone isn’t built into the monthly contract price, where does the money come from to make up the difference between the price you pay for a phone on a contract vs. full cost?

          • Verizon will find a way to rip people off with this. They always find a way

      • vzwvzwuser76

        That’s the partyline Verizon tried to sell me on. They eat the cost of the phone but only iif you stay with them during the duration of the contract. What they’ve actually done is built in the subsidy into the plan, that way they’re making more money once you’re off contract. If you don’t believe me, then why was the cost of the plan higher on one year contracts (when they still had them)? The service is no different, only for a shorter duration. In a one year contract, both the monthly charges and the device cost were higher. So in essence, they charged more upfront for the device, and upped the monthly charges to recoup their cost in a shorter timeframe. Now if they charged higher for only the device and left the monthly charges the same I might agree with you, but that just showed that the device subsidies are baked into the plan. It also shows that if you’re off contract you’re losing money paying for the subsidy without a new device to show for it. And don’t tell me Verizon would never do such a thing, they’d step over a dead body to pick up a penny. If it wasn’t for them being the only game in town where I am, I’d be somewhere else.

        • Keith Black

          Holy f**k this is pure ignorance. Did you not read the first line of my post? THERE IS NOT A SUBSIDY CHARGE BUILT IN TO THE PLANS. And what you said about the one year contracts is COMPLETELY FALSE. The monthly rate was the EXACT SAME as a two year contract. I’ve worked there for years, and you seem to have no idea what you’re talking about.

          • Yeah, the monthly rate was the same, but the upfront cost to get the phone was more.

            I’m trying my best not to be rude here, but if you’d ever had to manage the profitability of a project or product, you’d realize what you’re saying makes no sense. Verizon is not going to eat the cost of the phone for no reason. It doesn’t make business sense.

          • Keith Black

            I think you misunderstood the point I was making, you and I are on the same page 🙂 I was replying to the gentleman who said that when Verizon allowed you to sign 1 year contracts, both the device cost AND the monthly price plan was higher. The device cost was higher, naturally, but not the monthly rate.

          • Yeah, my bad. I hit the wrong reply button. I’m a bit of a comment lurker more than a poster.

          • There have never been free or discounted phones. Consider this. Verizon reported profit losses and customer gains when the iphone launched yet as time went by that changed and Verizon started reporting gains. Why is that? It’s because they get that money back. This is a dirty industry secret that’s been going on for years. Let’s pretend they are getting a free or discounted phone and lock them into their plan to assure we not only get the money back for the phone and profit at the same time. This is coming from someone who works in management for a cell phone provider. The only time you get a free phone is when find one on the street or steal one. Stop again with the nonsense.

          • BigRedguy

            Um.. What? I never said that there were free or discount phones. I never said that the companies are not trying to make a profit, of course they. Of course they get the money back, there is no “dirty secret”… I fail to follow your point?

          • vzwuser76

            The point he is trying to make is that Verizon is not in fact eating the cost of the phone, but making it back off of the monthly charges. You stated earlier that the plan cost was just that, their cost to provide service, nothing more. Well if they’re selling you a $500 phone for $200, and you say the plan amount doesn’t include recouping the $300 difference, but yet they are making their money back, how is that possible? The only explanation is that they are recouping the difference of the phone back through their monthly charges, and once you are done with your contract, the amount they use to recoup the difference is still charged to the customer even though it is paid off.
            The difference with T-Mobile is that once the phone is paid off, they lower the bill so they are not still charging you for the phone that you paid off. Same difference if you bring your own phone to T-Mobile, they charge you a lower rate because they don’t have a device they need to recover their costs on. If I brought my own phone to Verizon, the plan is the same, no different than if I’d purchased a phone through them. The only time T-Mobile is charging you a higher rate is when you buy a phone from them either subsidizing it or paying it off in installments. In other words, they are more transparent about it than Verizon is.

          • He understands exactly what I’m saying. I’m really getting a kick out of all these VZW employees scrambling to pick apart something that is pretty cut and dry. He’s just trying to complicate things.

          • “This is a finance agreement, thus you are contractually obligated to pay the full $480 regardless of how long you retain service… wait whaaat, a contract? ” What is your point here man? Is it that T-Mobile is still locking people into contract? Because that’s not the case. Are you suggesting they just let people walk out the door without agreeing to fulfill their obligation to pay off the device? What I find hilarious is that a month ago T-Mobile was doing essentially the same thing with their older value plans. On those plans there were ETFs on top of having to pay the phone off if they left. I don’t see you mentioning that nor was anyone making a stink about it then when it was more costly!!! Why is it that people like you are now ripping these plans apart after they decided to drop the contracts and ETFs?? The prices have come down on family share add lines by $20. They’ve improved but you wont mention that. Let’s just concentrate on the NEW plans and rip them apart (poorly) while Verizon scrambles to do something similar. You know damn straight what my point is. Don’t denounce it by making it seem like I’m unclear in my responses when people understand exactly what I’m talking about. Especially the vzw customers coming to my store. I haven’t stolen so many customers from Verizon in years. It’s OK though. VZW will replicate what we’re doing. And then you will wholeheartedly agree with the idea. Have fun trying on these forums. You aren’t doing so well basd on all the vote downs you get. I hope you’re pitches are better at work!

          • vzwuser76

            Okay, I apparently was mistaken about the rates on 1 & 2 year contracts being different. I could’ve sworn that it was higher on the 1 year, my mistake.

            But to say that Verizon isn’t recouping the difference of the phone cost out of their monthly charges isn’t correct either. You may not call it a subsidy, but the fact of the matter is Verizon is not losing money when they sell you a phone. Hence, as others have said, there is an ETF that basically pays off the difference of the retail cost of the phone should you decide to leave before the end of your contract. Now since they’re usually getting the difference of the phone cost back out of their monthly charges, once the phone is paid off, the monthly rate doesn’t go down. You said in another post that they are recovering their costs, and the only way they are doing that is from the monthly charges. So once you reach the end of your contract, and paying the same rate, is that not them getting more money with less output than if you were under contract? Am I missing something here?

            And by the way, people can disagree without insulting each other. I was wrong, I admit it. But employees like you are the reason I don’t deal with people at Verizon unless absolutely necessary. You work there, so obviously you know all the ins and outs of Verizon. Why would you expect your customers to know every little thing about it. If that was the case, you would be unnecessary because the customer would know how everything works. If I was hired to install gear at your store, I wouldn’t expect you to know everything about my job otherwise I’d be irrelevant.

          • The fact that you’ve worked there for years and haven’t realized that what he said is true is so damn sad and funny at the same time. if I were taking a sip of water while reading that I would spit take all over this freaking laptop. And you have the nerve to call people ignorant?

      • Jon

        Remember on T-Mobile you can buy a top-tier Nexus phone for $299-350. With no contract or obligation. You can’t do that on Verizon. So from day 1 the cost of entry is way less and remains so in the long run.

        • Keith Black

          Remember on T-Mobile you’re getting a bottom-tier network. So from day 1 the cost of entry is a waste of money and remains so in the long run.

          • Jon

            Well that may be true for you as an individual and your particular need and coverage area. For me in Los Angeles, and I no longer travel for work, T-Mobile service more than meets my needs at a way lower cost than Verizon while providing more choice of plan options and device options both new and used.

            Just because this doesn’t fit you and your needs doesn’t mean its rubbish for everyone

          • Keith Black

            I completely agree, sir. Well said. You are the minority though, not the majority.

          • That’s always the last resort when defending Verizon. Once you cut through the nonsense and it’s obvious the plans and pricing don’t compare you get the classic “Oh yeah, well T-mobile’s coverage sucks”. O.o

          • BigRedguy

            I never said that the plans and pricing DO compare.. Verizon is more expensive than T-Mobile does suck, ESPECIALLY compared to Verizon.

      • WRONG!!!!!!!

        • Keith Black

          Your use of multiple exclamation points provides such validation of your point. I would ask for an intelligent response that further explains “why” you think I am wrong, but with all those exclamation points I don’t see how I could possibly be right.

          • will bartlett

            he used more exclamation marks. you used caps. shut up.

          • BigRedguy


          • Wow. So now you are the exclamation point police and decided to pull out the desperate car comparison. Hilarious. My points are clear. Once again you are down playing them. You’re so stuck on this etf vrs installment subject. Anyone with a brain would think big picture and savings over time. Not what do I pay if I cancel in 6 months . Besides if you factor in the service charges and the difference between the down payment on the phones it is more at Verizon. You are telling the portion of the scenario that fits your argument. My point s is valid. Like I said l, stop downplaying what I say. I’m right on this because I’m telling the full story. Not just the part that fits my argument. If you sign up at vzw and t-mobile and pick comparable plans and the same device you will pay more if you cancel after x days with vzw. There’s no way around it. Stop again with the BS. here’s some more exclamation points just for the heck of it !!!!!!!

          • This from a guy spitting out vulgarity and insulting people. Excuse me for throwing in some extra exclamation points.

        • BigRedguy

          I didn’t “pick and choose”, Verizon and T-Mobile’s price plans are comparatively priced according to the respective quality of their networks. I’m not arguing monthly price plans because Verizon’s SHOULD be more expensive than T-Mobile. It’s the same reason that there is a difference between a Honda Civic and a Ferrari.

          Lastly, I DIDN’T SAY THAT T-MOBILE SHOULD NOT OBLIGATE THEIR CUSTOMERS TO PAY FOR THE PHONES, OR THAT YOU SHOULD HAND THEM OUT. My comparison was showing how T-Mobile’s device installment plan causes you to pay MORE than what a device costs through Verizon even with Verizon’s Early Termination Fee.

          • Ahh the old Ferrari comparison! Every single time I post on these threads the VZW guys resort to this analogy. I find it hilarious. So do Ferraris charge extra when you run out of gas like Verizon? Well I may have a solution!

            Apparently I have to spell this out for you. And of course you will retort with whatever nonsense you can come up with. Maybe drag out the Ferrari/Network analogy again. I happen to like Civics btw. I always see cute girls in them. Nothing but rich A-holes in Ferraris.

            Iphone 5:
            $199.99 down payment @ VZW
            $99.99 down payment @ Tmo

            After six months VZW termination fee is $290 if you left.
            After six months you owe $400 (installments kick in after two months) @ T-mo for the phone if you left. So after 6 months you’ve paid $80 towards the phone.

            Don’t forget now that you paid $100 more for the Iphone at POS at VZW. You cannot in all fairness factor out the down payment in the phone. It’s part of this equation, like it or not.

            So overall you have paid $590 for the VZW ETF and phone if you left at six months compared to $600 at T-Mobile.

            WOW! What a difference! Ten entire dollars. You can use that to put gas in your Big Red Ferrari!

            Is that clear enough? You are making claims but not showing the math. That’s the math before even attempting to show what you save as far as monthly reoccurring charges. The only comparable individual plan is the unlimited talk text and 2GB plan. It’s $20 more per month and that’s with the phone installment factored in T-Mobile’s plan.

            But the price plans aren’t a factor to you. You’re obsessed over the ETF versus Installment remainder. Well I laid it out for you. There’s a $10 difference after 6 months. Congratulations?

            I also suggest not calling people ignorant. You are representing your company and should try and have a little respect.
            I’m done.

    • Bionic

      No one knows yet