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Verizon Announces VZ Edge Upgrade Plan – No Contracts, Month-to-Month Phone Payments, Early Upgrades

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During the company’s Q2 earnings call this morning, Verizon CFO Fran “ShamWow”    confirmed that they will offer an upgrade package in the future called VZ Edge. At the time, he wouldn’t dive into specifics, but Verizon has now officially announced “Verizon Edge,” and provided the basics in terms of details. As you know, we first reported VZ Edge earlier in the week. This announcement matches up to our information. 

With VZ Edge, customers can purchase phones on month-to-month service plans, meaning they can get new phones without having to sign up for a contract. The payments of the phone will be spread out over a 24-month period, with the first month’s payment coming at the time of purchase.

In terms of upgrading early and often, VZ Edge allows you to upgrade after you have been in the plan for 6 months and have paid off 50% of the full retail cost of the phone. At that time, you can choose a new phone and start it all over again by trading in your current phone. Since you are spreading out the full cost of the phone, there is no big, upfront downpayment.

According to Verizon’s announcement, there is no finance charge or upgrade fee to participate in Edge. When Big Red announced a device payment plan a couple of months back, they included a $2 per month finance charge at the time, so at least they realize that the fee was nickel and diming customers and apparently removed it for Edge.

The new VZ Edge service goes live on August 25 to Share Everything plans. Yes, it says “Share Everything” specifically, so I’m not sure that those of you who still have unlimited data will be able to participate. We’ll find that out for sure.

Update:  Verizon has confirmed to us that VZ Edge is not available to customers on unlimited data plans.

Before you think about signing up for the service, you’ll want to read our take on it.

Via:  Verizon [2]

  • scotch1337

    so going with this new plan, am i forced into doing the edge thing or am I able to still do the 2 year phone contract with a subsidized phone?

  • patrick

    No problem verizon. I’ll keep my unlimited data plan with my S4 that i paid $200 for.

    • Jason Parr

      How did you manage that? I have an upgrade due but don’t want to lose unlimited.

      • patrick

        Well i am on a family plan and my dad has a dumbphone whose line was due for an upgrade. So we upgraded his phone to smart phone 2gb data plan, bought the S4 for $250(got a $50 rebate) and then switch the phone to my number. Downgraded my dad’s line back to dumb phone. So S4 with unlimited data. :)
        You need to go to one of those authorized retailers. thats where i got mine done.

  • NIGHTSCOUT

    I’m probably gonna sell my Unlimited plan on eBay, and switch to T-Mobile, tired of paying $145 a month for 2 lines….

    • Destroythanet

      I heard that Verizon doesn’t let people transfer unlimited plans to other people anymore.

      • NIGHTSCOUT

        I dunno, it’s in the contract that I signed, so they can’t deny me what they made me sign….

        • scotch1337

          better sell that in contract then, because out of contract they don’t owe you anything that is stated inside of that contract and that means if they don’t allow the transfer of unlimited plans while out of contract then your screwed

  • FelisLachesis

    I’m trying to do the simple math on the differences between the two and this is what I came up with.

    I’m going to use the GNote II from VZW as it’s currently their most expensive phone, but other phones should hold a similar formula.

    Full retail: $700
    On 2 year contract: $300
    (ok, they’re actually a penny less, sue me)

    After 12 months, the payments on VZEdge is $350, the contract is still $300.

    At that point, the VZEdge plan has the option of moving to another phone, the old way still has another year to go.

    Basically, this looks like how the old 1 year contracts used to work, where the price for the subsidized phone was $50 more on a 1 year than a 2 year. They’re going back to that old model, but shaping it a little differently.

    So if you want to upgrade often, this is not necessarily a bad idea. If you don’t mind waiting for 2 years, though, then staying with the old contract is definitely the more attractive option.

    • mec

      thats what i tried saying earlier… hows this different than buying subidized every year.

      • FelisLachesis

        It’s not. I checked the math on some other phones, and it varies somewhere between $50 and $300 for the privilege of a one year contract, but then again, how many of us who read this site are going after a Droid Incredible or a DNA?

        But the basic formula is 1/2 of full retail – contract price. If the difference is worth it to you, then go for it!

      • Kirk Lei

        the difference is that you have to trade in your old phone with this new plan to start a new one. With the subsidized plan you get to keep it and can sell it used to regain some of cost.

  • sski66

    Ever since Verizon pushed our upgrade cycles back I can’t upgrade till Jan. I not going to upgrade because i have “Unlimited Data”, I’m going to buy @ full retail price, my question is if i bought a new phone say next week that doesn’t make me loose my Unlimited Data because i didn’t wait to my contract is up, does it, i don’t think it does, I just want to make sure, thanks in advance.

    • Frank512

      You can buy a phone at full retail and switch to it whenever you want and keep unlimited data. You just can’t cancel your service before the 2 year contract is up or you pay ETF.

  • Lovelyjackson

    I’ve made $64,000 so far this year working online and I’m a full time student. Im using an online business opportunity I heard about and I’ve made such great money. It’s really user friendly and I’m just so happy that I found out about it. Heres what I do, http://www.Pro67.com

  • mec

    you guys do realize that, if verizon offered annual upgrades, they would be hailed as being the greatest ever. meanwhile over a 2 year term, you just spent $600 on two phones. Under this plan, you spend $650 on phones over two years, if you upgrade twice….

  • droidrazredge

    My assumptions were correct like I said in the DL post the other day, I knew Verizon would pull some shady crap like this. They’re trying to squeeze the last of the unlimited data users off the network. I knew this was to good to be true for unlimited data users. Even more reason to stick it to them and user more bandwidth and tether to the max while I’m on my unlimited data plan

    • Mike Hilal

      I make sure to exceed 10gb no matter what on a light month. 30 is about average. Either way, I’m guessing you have to turn in the device if you do the 6 month upgrade….and for those of us that keep devices, that’s no good.

      I’d rather pay $24 and pay the device off over 12 months and keep my unlimited data.

  • duke69111

    Verizon can suck my Unlimited nuts.

  • Frettfreak

    everyone is missing the KEY here… on this plan your phone payments are spead out over 2 years… You have to pay off half the phone before you can upgrade which would happen in 12 months, not 6.

    The only way to upgrade every 6 months with this is to DOUBLE YOUR DEVICE PAYMENT TO VERIZON.

    WOW… sounds like a great deal. not only that but for the privilage of being a verizon customer you TOO can pay the same rate on your plan as the subsidised customers.

    Bottom line here: If tmo would step up and get better coverage everywhere…. they would be number 1. LOL

    • aDROIDfreeworld

      tmo will never have the coverage of att or vzw unfortunately – FCC spectrum is all taken for the next million years.

      • Frettfreak

        True… but companies can be bought and sold so who knows really. But I hear what ur saying. Too bad for tmo too cause i really like them as a company.

        • aDROIDfreeworld

          me too, they are great on the customer service by what my buddies have told me

    • Mike Hilal

      Im pretty sure they allow you to turn in your other device and make just the one payment. Either way, this plan is for suckers

      • Frettfreak

        I am sure they will allow that but the end result is the same…. You get screwed. Lol

  • Jerry Huster

    Wow…if that’s not an “F You” to every customer still on Verizon, I don’t know what is. Goodbye, VZW…you’ll never see another dime from me. Hello, T-Mobile!

  • http://www.baldypal.com/ BaldyPal

    i happen to be in a market where ATT and Tmo will be late to the game with their 4G and their HSPA+ (or Tmo’s at least) pretty much is non existant…sign…i got unlimited on Verizon and 4G so i’ll just have to tuck my tail and keep strolling.

    What’s the best way to buy new release Verizon phones, Ebay? or is that too much of a gamble?

    • Frettfreak

      I have always had good luck on craigslist, but make sure you check the EIN with verizon before you buy.

  • Detonation

    Correct. You paid for half the phone, and then trading it back in “pays” for the other half of it.

  • RoadsterHD1

    What about just financing the phone without the edge? Can we still do that?

    • chris420o

      better off getting a cc with 0% for a year n doing that…why give verizon extra money

      • RoadsterHD1

        No CC, easier making payments and 21.00 is not a lot.

  • chris420o

    i wouldnt trade unlimited data for all the htc ones and moto x’s in the world…the second they try to take it away from me im going to tmobile…i love when i call verizon to bitch about something they always try to tell me how much ill save with share everything where in the end my family plan with 3 unlimited data lines i have now will be just as much as their share everything with 2gigs of data lol…i just like putting the guy to work doing all the math just so i can laugh at him n they can admit yeah this isnt a good change for u

    • ANGELYCAM

      Exactly, what logic is there in that? Let me give you 2 gig for 3 lines and you’ll come out $5 cheaper….NOT!! I won’t trade up either until I get kicked off unlimited.
      On the other hand the other plan they announced included ppl on unlimited data, so that could be a plus…..MAYBE!!

  • jnt

    This is why I don’t think this is a bad deal for people in my situation… but I have to make a couple of assumptions first. #1 – I know I’m not going to hold onto a device more than 6-12 months anyway and will go to the trouble to sell it outright and buy the next one outright. #2 – I know I’m staying with Verizon due to coverage and reliability. #3 – I’m already on a Share Everything plan.

    So knowing that, and (this is important) if I’m willing to sell my first device or two outright to cover a majority of the cost of this, it’s not a bad deal.

    e.g. – I have a Droid Razr Maxx and an upgrade to use. I use the upgrade and get a GS4 for $200. I sell the Razr Maxx outright to cover that cost. So far, nothing out of pocket, net. Now that I’m locked into the upgrade and GS4, I’ve decided I want an HTC One instead (whenever we see it). I buy the HTC One for (I’m assuming) $650+tax on the new “Edge” plan, which works out to right at $30/month. I’m able to sell the GS4 outright for $560 because of it’s condition, etc. I save the $560 and pull the extra $30/month from that. After 6 months, I decide I’m tired of the One and want to try out the iPhone 5S. $180 of the One is paid for, so I need to pull another $145 from that $560 to get it to 50%. So I turn in the One, get the 5S for the same $30/month, and still have $235 left of that $560. 6 months go by, another $180, and I’m done with the 5S and ready to hop on board the HTC Two or GS5 or Moto Z Phone or whatever the heck is out then. Same story as the One>5S switch. I’ve paid $180 towards the 5S and need another $145. I have $55 left of the $560, which means if I want to drop the 5S at this point, I have to pony up $90 out of my pocket. So I pay the $90, get the HTC Two/GS5/Zphone, and start paying the $30/month.

    So I went an entire year with 3 of the “latest/greatest” devices without paying a penny out of pocket, all because I started it off by selling outright. And after a year, it’s an additional $30/month, which I’d easily be paying anyway to buy outright down the road.

    So like I said, for someone like me, this seems like a really good deal. I guess the only potential wrench is if Verizon requires you to turn in your device as a qualification to start the program, but it doesn’t sound like that’s the case. If I’m missing something here, please someone poke some holes in my logic…

    • Tim

      but are they going to make you trade the phone in if not fully paid for? If so you don’t have a phone to sell.

      • jnt

        The only one I’m selling is the GS4 – after that I’m trading them all in.

        • Tim

          yes…I went and read better…my bad.

    • chris420o

      did u not read where it says you have to return your device to them if you upgrade before its paid off…so this wouldnt work…lots of typing for nothing

      • jnt

        Please read better – the only devices I’m selling are up front, not once I’m on the plan.

      • chris420o

        well i realize u said ud use an upgrade for the gs4…still your talking nonsense ur not gonna keep 500+ cash somewhere for yoru future cell phone payments and your plan will always be 30 bucks more which will suck…and eventually youll stil have to return phones and im sure if you drop one n break it you wont get ish for it…ect

        • jnt

          I have a savings account via ingdirect – I could easily stick the $560 in there, then setup automatic monthly withdrawals from it for $30 – then it’s thoughtless. And you bring up a good point on damaged devices. I would have insurance coverage, but would an insurance replacement still qualify? Also, in 5 years of smartphone usage, I’ve never damaged a phone. I know, famous last words…

          • chris420o

            thats the thing there is no way verizon will take back a refurbished unit from asurion to trade back to get a new phone…otherwise in 6 months everyone would do it bc 90% of people will have a ding on their phone accidently in 6-12 months of usage n want something new

          • jnt

            Well if that’s the case I’ll be even more careful with cases and all that. But like I said, in 5 years, I’ve never had to use insurance, and hardly gotten a scratch or ding on my devices, so I guess I’m not really factoring that in. edit: which could be careless thinking on my part, I admit!

    • angelycam

      Sorry to spoil your high, but yes you have to trade in your device to upgrade, herefore it’s not a good deal! Besides that, they’d be losing money if they outright gave you the device just because you paid 50%….not logical at all .

      “In terms of upgrading early and often, VZ Edge allows you to upgrade after you have been in the plan for 6 months and have paid off 50% of the full retail cost of the phone. At that time, you can choose a new phone and start it all over again by trading in your current phone. Since you are spreading out the full cost of the phone, there is no big, upfront downpayment.”

      • jnt

        Right, which I stated in my scenario. But to START the plan, this is what the article says: “Here’s how it works: Choose the phone you want and sign up for a month-to-month service plan, it’s as easy as that.” So I guess it’s unclear if to START the plan, you have to turn in your current device.

        • angelycam

          You’re right! Until we know all the ins and outs it’s hard to say. I hate to say that maybe if you’re due for an upgrade you probably will have to turn in your phone, since you really haven’t paid it off. With it being VZW, there’s a good chance they might want your phone to start the plan. On the other hand…new customers wouldn’t have a phone to trade in. So it could work either way. I don’t have disposable income (I’m just a peon worker with kid in college/kid in school) I’ll just stick to my unlimited on GS3 until they kick me off, then I’ll mosey on my way to share everything :(.
          I did use my husbands upgrade to get the GS3 and they tried to put me on a data plan, but as soon as I got it home, I switched his phone over to my line and hooked his flip back to his line, thus keeping me on unlimited with a better phone (which I had the Razr…bleh!) then they took off the data. Never paid for data on his line ever!

    • Sam

      Did you even read the article? Why would they give you a phone to sell just because you paid 50% of it off.

      • jnt

        I’m not selling once I’m on the plan, I’m only selling up front.

        • Omar Amer

          cant sell the gs4, when you walk in to “get” the htc one I think verizon expects you to trade in your most recent phone so you would need that gs4 on hand. just a guess on my part, knowing verizon’s bad deal history.

          you are under the assumption that when you walk out with the HTC One, you will also walkout with the GS4 as well.

          • jnt

            Yeah that’s my only worry. Their verbiage doesn’t make it sound like you have to do that to start the plan, but some clarification would be great.

            On the other hand, you’re still committing to paying the full price of the One (to stick with my scenario) – it’s not like you’re getting a discount for that first Edge device, so maybe they wouldn’t require an up-front trade in? *crosses fingers*

    • jnt

      My point with this whole thing is that if you know you’re going to stay with Verizon and know you’re going to want to switch devices every 6 months to a year, this isn’t the blatant rip-off everybody’s saying it is. This seems like a good way to spread out and mitigate the high cost of being a mobile nerd that swaps devices often, as well as wants to stay with Verizon.

    • SewWhat

      The only issue I see with your logic is that you’re not including the built in subsidy that VZW is charging to recoup the low initial cost in the current contract plan paradigm. From the way the press release is currently worded those won’t be changing. If you take that into consideration you’re essentially paying nearly double for device costs over the lifetime of your maintained service.

      • jnt

        You’re exactly right, which is what makes T-Mobile’s plans so appealing. But if I don’t plan on leaving Verizon and do plan on switching devices without upgrades every 6-12 months anyway (like I’ve done outright for years now), that’s basically a non-factor – and I say that realizing that’s NOT a non-factor for most normal people.

  • angelycam

    So thankful for all these math geniuses! I love the latest and greatest, but I don’t want to leave unlimited! If I didn’t come here and read this forum, I’d think this was a good deal. Too bad those that are not privy will fall for this in an instant. I have a GS3, and with some of the GS4 updates coming to the phone, I have no problem staying on this phone. As long as I can Hulu+, Netflix, HBOgo, Youtube, iHeart or any other data streaming app I use is good on my phone, I will stay with unlimited…Thank you, but no thank you, VZW!!