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

[dgstorm]

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,

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.

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

 

[johnomaz]

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.

 

[nickb34]

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.

 

[Hugh Jass]

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.

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.

 

[Hugh Jass]

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.

Yes, this is a work-around to keep unlimited data.

 

[kodiak799]

Yes, this is a work-around to keep unlimited data.

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.

 

[kinfolk248]

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.

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

 

[nickb34]

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.

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!

 

[Crankintopwater69]

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.

The only thing VZW has over Tmo is their coverage.+1000

 

[tjk629]

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.

 

[kodiak799]

...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.

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.

 

[kodiak799]

But it doesn't mean that I want to throw down $600+ on a new phone when I don't have to...

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.

 

[WildcatRudy]

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.

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.

 

[WildcatRudy]

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.

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).

 

[Hugh Jass]

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

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

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.

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:

Total wireless revenues grew to $19.5 billion, and now represent two-thirds of Verizon’s consolidated revenue.

That was for Q1 of this year. :dry: