The petition to get Verizon to ditch wireless contracts is now almost at 100k signatures (currently sitting at about 98,000). In case you missed it, a Wichita, Kan. resident named Mike Beauchamp started the petition. His idea was inspired by T-Mobile's new "Un-carrier" pricing model, and was also sparked by a comment from Verizon CEO Lowell McAdam, in which McAdam made it clear that Verizon would be happy to dump contracts as soon as customers started asking for it. It looks like the petition has actually had an affect.
Big Red is now offering a new financed device payment plan option that you can take advantage of instead of a traditional subsidized two-year contract. (But this new option doesn't really save you any money in the long run, and will actually cost you more.) Here are the particulars in a quote as well a link to the Verizon source,
As you can see, this is similar to what T-Mobile offers although not nearly as cost effective. Verizon's monthly carrier service pricing is quite a bit more expensive than T-Mobile, and financing this device doesn't change your Verizon carrier pricing at all. Also, Verizon's data cap limits do not really compare to T-Mo's unlimited data. Finally, this new device financing option includes finance charges, while the T-Mobile one does not.Upfront cost doesn’t have to be a factor in keeping your technology current. Purchase and activate service on an innovative full retail priced smartphone or tablet, and pay for it in monthly installments.
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- 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.
- Available to qualified customers only. See a Sales Representative to determine eligibility.
This effectively means you are paying the same price for your carrier service as the person next to you who subsidized the phone, but you didn't get to take advantage of subsidizing your device. Yes, you get to pay the phone out over time, but you also end up tacking on service fees, which effectively means you spend more overall than if you had just subsidized it in the first place.
So basically you get to pay Verizon more for the privilege of not being on a contract. What an amazing deal Verizon! [Sarcasm definitely intended.]