VZW Petition to Ditch Contracts Nears 100k; Verizon Offers Expensive Payment Plans

Discussion in 'Android News' started by dgstorm, Apr 22, 2013.

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  1. dgstorm
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    dgstorm Editor in Chief Staff Member Premium Member

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    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.

    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! :blink: [Sarcasm definitely intended.]

    Source: VZW
    Last edited: Apr 22, 2013
  2. johnomaz
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    johnomaz Silver Member

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    The fact that its still the crazy overpriced Share Everything plan is a big no. Unless you have 4 smart phones on your plan, it doesn't make sense to do it. The only thing VZW has over TMobile is their coverage.
  3. nickb34
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    nickb34 Member

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    Can I keep my unlimited plan? If so, then this may be a great option for those that want to upgrade their device but don't want to switch to the Share Everything plan.
    Last edited by a moderator: Apr 26, 2013
  4. Hugh Jass
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    Hugh Jass Senior Member

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    It's not about coverage, it's about reputation. If TMobile matched Verizons coverage tomorrow and they wen't tit for tat on pricing, not as many people would switch as you think.
  5. Hugh Jass
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    Hugh Jass Senior Member

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    Yes, this is a work-around to keep unlimited data.
    Last edited by a moderator: Apr 26, 2013
  6. kodiak799
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    kodiak799 Silver Member

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    That work-around already existed - called month-to-month and buying phones retail.

    The irony is these people abusing unlimited data is partly why VZW ended it, and because they obviously can't pay for home broadband VZW had to come-up with a plan to make a new phone affordable for them.
    Last edited: Apr 22, 2013
  7. kinfolk248
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    kinfolk248 Member

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    HMMMM, somewhat true but not entirely. Data users cant actually 'abuse' the system, thats lingo companies brainwash people with to make themselves look like a victim. Actually, data is measured by the number of users, not the amount each user using. For example, in a big city such as NY with 100 people using a tower at 1 gig each (100 gigs) is no different then 100 people using 2 gigs (200 gigs). The data is transferred per user signal on that tower not how much each user uses because each user in essence uses the same amount of data because data only transfers at a set (constant and independent) speed...

    IF that makes sense
  8. nickb34
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    nickb34 Member

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    I can buy a phone outright and I don't abuse the unlimited. But it doesn't mean that I want to throw down $600+ on a new phone when I don't have to...
    The problem lies within the stupid share everything plan. I have 3 feature phones on my account in addition to the 2 smartphones and if I switch to the new plans, I have to pay $30 for each of those feature phones. That's $60 a month extra for that switch, and what do I get??? Oh, that's right.... limited data!
  9. Crankintopwater69
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    Crankintopwater69 Senior Member

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    The only thing VZW has over Tmo is their coverage.+1000
  10. tjk629
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    tjk629 Silver Member

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    There are other ways to do this, and they have been around forever.

    Honestly, what they need to do is revisit how much these phones are off contract. It is insane how much these devices are. If Google has shown us anything with the NEXUS 4, it is that, you can sell a high end device at a reasonable price. For example, a GS3 off contract is $699. The NEXUS 4 $299/$349. What justifies the $400 increase of the GS3 or any phone for that matter? At the risk of sounding like a conspiracy theorist, I would say that the high prices of off contract phones here, is to persuade people to buy contracts.

    Before we move into ditching contracts and creating monthly payments on phones. We need to address this pricing.
  11. kodiak799
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    kodiak799 Silver Member

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    I think there is definitely tacit collusion going on there. They push people toward contracts with the high retail price, and as a result the carriers give them generous subsidies and pre-orders. I don't think anyone really knows how much the subsidies are, but if you back into you're going to end-up figuring the mfr is getting $100-$200 more from a retail purchase than a contract purchase (with subsidy).

    I agree the biggest issue is pricing. I think the contracts and subsidies have kept prices artificially high.
  12. kodiak799
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    kodiak799 Silver Member

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    That's fine if you want to throw away an extra $40 to keep a few hundred extra in your bank account. Not the smartest financial decision one could make.
  13. WildcatRudy
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    WildcatRudy Member

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    What I find even crazier is how you can order a Nexus 4 from the Google Play store for $299/$349, but if you look at the purchase price at T-Mobile (with or without making payments) you are paying over $500. Same with prices for the same phone on eBay...I can't believe there are that many consumers out there who don't realize how much cheaper it is through Google.

    My Nexus 4 is on the way...it left Louisville and will be here tomorrow. :D
  14. WildcatRudy
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    WildcatRudy Member

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    Agreed. And the "suggested retail" price is just that: a "suggested" number. Who knows (outside the boardroom) what these phones actually cost per unit. I find it hard to believe some of these phones are really worth $499 or $599 to us, the end users. They must have a lot of cushion in these, just to offset the price of those who might bail on their contracts and keep the phones (while the carriers try to hunt them down).
  15. Hugh Jass
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    Hugh Jass Senior Member

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    If you'd like to reimburse me the built in cost of a subsidized program, gladly.

    Yea, you can preach all you like but Verizon is swimming in cash bro, if a billion evaporated for them in thin air not even an investor would care. Don't poor Verizon me:

    That was for Q1 of this year. :dry:
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