Verizon is doing away with contracts

[Deval]

Let's discuss in a new thread.

 

As reported today on a few sites: http://www.theverge.com/2015/8/7/9116493/verizon-is-doing-away-with-contracts

[derrph]

I wonder how this will mess with tmobiles numbers if at all?

 

 

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[payturr]

*claps* Good show Verizon, still expensive though and lacking in a lot of perks next to T-Mo and Sprint. It's a start, though.

[joshuam]

$160 for 4 lines to share 12GB...LOL. No thanks.

[derrph]

$160 for 4 lines to share 12GB...LOL. No thanks.

Geeze. These plans only sound decent if your the only user on the account.

 

 

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[Houston_Texas]

I wonder how this will mess with tmobiles numbers if at all?

 

 

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What does this have to do with T-Mobile?

 

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[derrph]

What does this have to do with T-Mobile?

 

Sent from my SM-N910T

For the fact that they are following to some extent what T-Mobile has done. Will some who have not so great service from them see this as attractive being its no contact. I'm just asking a legit question.

 

 

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[thewezgrays]

Not much of a change than before, except $20 a phone instead of $15 like it is now (and 12gb for 80/mo insgtead of 10gb)... also interesting to see the $5 per smartwatch... does that pretty much confirm that the next apple watch will be network connected instead of to the phone?

[JeffDTD]

With no early upgrade/device trade options and increased per line charges for those with larger buckets, Verizon can lump it. Its almost as though theyre inviting folks, especially older people, to shop other carriers. Device financing is certainly the future, but Verizon has lots and lots of customers on old plans of all sorts. This will be a major education task for stores working with older customers

 

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[WillM]

I always hope moves like this will put downward pressure on handset prices. I saw a comment on another site about how Apple at it's keynotes like to put up the subsidized prices. So they will show prices from Free to $299 for base configurations. If nobody is offering contracts anymore will they have to show the real prices and how will people react to that? Plus if the bill is simplified to the point where it just shows service and phone installment will that make people think twice about the phone they choose. I guess we'll find out. Of course with these plans the out the door cost is much lower so maybe it won't stop people. 

[creamy1973]

I really like to leasing option Sprint provides.  I believe they will follow suit and do away with contracts as well.  Only a matter of time.  I just wished that Sprint would provide calls/texts to Mexico and Canada like TMO does.  As well as some type of hot spot.  Then that truly would be a great value!!

[Rawvega]

I just wished that Sprint would provide calls/texts to Mexico and Canada like TMO does.  

 

Sprint Open World Roaming includes calling and texting to Mexico and Canada for $0.00.

[travismheim]

Not much of a change than before, except $20 a phone instead of $15 like it is now (and 12gb for 80/mo insgtead of 10gb)... also interesting to see the $5 per smartwatch... does that pretty much confirm that the next apple watch will be network connected instead of to the phone?

No, Verizon is pushing connected smart watches such as the LG gizmo pal. Apples watch already has battery problems, I can't imagine what it would be like having to also power an additional radio.

 

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[Terrell352]

Geeze. These plans only sound decent if your the only user on the account.

 

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Not really. Say you have a device installment of $25+monthly access fee $20+$30 for 1gb of data. That's $75 a month for unlimited talk and text and 1gb of data and that not including taxes and other fees. I would hardly call this a good deal. I call the prostate plan. Because they will put it where the sun don't shine.

[anthony.spina97]

Apples watch already has battery problems, I can't imagine what it would be like having to also power an additional radio.

 

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The first generation Apple Watches have battery problems because their processor is built on a four year old manufacturing process that is not nearly as efficient as today's devices. Apple had to leave some room so they could easily make a much better second generation Watch.

 

-Anthony

[cletus]

These verizon plans are absolute crap. 

 

12 GB with 4 lines is $160 BEFORE the cost of new phones. I mean jesus with new phones you might be looking at another $100 a month!

 

I mean, I get that it is a rock solid network blah blah but still that seems incredibly costly for the amount of data you get.

[Vince]

These verizon plans are absolute crap.

 

12 GB with 4 lines is $160 BEFORE the cost of new phones. I mean jesus with new phones you might be looking at another $100 a month!

 

I mean, I get that it is a rock solid network blah blah but still that seems incredibly costly for the amount of data you get.

Verizon and AT&T can do whatever they want. They have a reputation, and solid networks. People won't leave in droves because of this. In fact, they'll probably gain customers like they always somehow manage to do.

 

 

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[utiz4321]

I am super excited about this move. Die, contracts die.

[greenbastard]

I am super excited about this move. Die, contracts die.

I hope Sprint continues to honor current subsidies and contracts. My ED 1500 plan is still cheaper than anything else they or T-Mobile offers for family lines. The only thing that came close to matching it in price was Framily, but Framily didn't come with a discounted phone.

 

Non contract plans would be nice if phones were truly universal and would work with a simple SIM card swap, but that's not going to happen with carrier specific phones. Every phone outside of the iPhone, Nexus, and the new Moto X/G won't work with every carrier. Until manufacturers provide universal support for all domestic LTE bands, I don't see a reason to be exited about the demise of subsidized phones.

[GoBigRed79]

I always hope moves like this will put downward pressure on handset prices. I saw a comment on another site about how Apple at it's keynotes like to put up the subsidized prices. So they will show prices from Free to $299 for base configurations. If nobody is offering contracts anymore will they have to show the real prices and how will people react to that? Plus if the bill is simplified to the point where it just shows service and phone installment will that make people think twice about the phone they choose. I guess we'll find out. Of course with these plans the out the door cost is much lower so maybe it won't stop people.

This is one reason Apple's stock is under pressure right now. Growth is slowing as the market saturates and with subsidy pricing going away it's more likely they will have to compete on price, and the fat margins on iPhone will decrease.

 

 

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[gusherb]

I saw this coming years ago. The only way axing subsidies and going with payment plans or buying outright is a good deal is if the actual service costs less then before. Obviously being the cynical person that I am I was able to see how this would work out and that they would just simply separate the phone cost from the service cost then carefully jack up the cost of service.

 

They've geniusly figured out how to take a consumer friendly system, continue to make it look consumer friendly and turn it around to make it even more consumer unfriendly then anyone could've ever imagined. T-Mobile was the first one to really figure this out and cash in on it, now Verizon is, and only a matter of time before AT&T changes their plans to reflect the newest scam VZW has come up with.

 

If only the companies used this creative genius to actually better themselves...

[Arysyn]

Hmm... I thought I made a post about this topic, but I can't find it in this thread. Perhaps I wrote about it in another thread here on S4GRU, as this is the only cell site I'm a member of and currently post at. Although, I recently signed up for Disqus and could post elsewhere using that account whenever. Anyways, I'll go ahead and post here in this thread, as this regards Verizon. Although before I do, I suggest since T-Mobile has its own thread, perhaps Verizon and AT&T could have their own dedicated threads too. Might make posting and reading about them easier, with the exception of issues which sometimes crossover.

 

I was wrong about Verizon's pricing change when I made a prediction based from some rumors I read online recently about it. Particularly, the mentioning of Verizon having a "double data" promotion built into new standard plans. Also, I was fairly confident Verizon would lower the rate for line add-ons, due to increased competition from both T-Mobile and Sprint's latest promotions that skip unlimited data but instead offer such a tremendous competive cost advantage with per gb data rates in contrast to Verizon's.

 

Sure, Verizon's old standard non-promotional rate for 10gb was $100 monthly, where now 12gb is $80 monthly, there really isn't much savings. For example (monthly); 1 Line : old $115, new $100. 2 Lines : old $130, new $120. 3 Lines : old $145, new $140. Then there are 4 Lines : old $160, new $ 160 - same price for 2 additional gbs in contrast to old 10gb. 10gb vs 12gb, big deal! (sarcasm applied)

 

Verizon seems to think that a gb is some very highly valuable thing. That along with a line, something which as I mentioned earlier I thought they would have lowered the rate. Not just because of that additional direct per gb rate competition, but the ridicule Verizon has received during this time, where John Legere criticizes Verizon for it, and Sprint continues to waive those fees for much longer. Yet, Verizon goes ahead and raises those rates. The rate hikes on the lower per gb data plans were to be expected, but now with the rate hike of Verizon's line add-ons, is just completely ridiculous!

 

As for my decision possibly to get Verizon, I might do it if they also have a promotion of 15gb for $90 monthly. Then with my one line would be $110 monthly, with my mother's connected Smartwatch totals $115 monthly. Yet, I'll only get Verizon at these rates only, no more expensive than that, and only with the Sony Xperia Z4v. Otherwise. I'm likely going back on Sprint.

[Josh]

From what I can tell, the major difference is for the single and 2 line plans, as they are closer to the competition now in price (but still more expensive or less data, however you look at it) 

 

They really believe that their network "deserves" to charge a higher premium for the additional coverage they provide. They either think that no one is smart enough to see what their really doing, or that those people are stuck with them b/c of coverage requirements... and will go along with whatever they say. 

 

Also, although I don't have any hard data to show, I remember Verizon having a HUGE percentage of very large family accounts. Now in the past, this made the cost/line close to the competition, but was utterly cost prohibitive to cancel the account. This was made worse b/c of the sneaky nature of their customer service who would tell a customer they were sending a free replacement phone after a complaint, but really were using an 'alternate upgrade' from another line... ultimately forcing a customer to lose an upgrade for a crappie phone, screwing the person on the other line to not be able to upgrade, and locking everyone from leaving for another 2yrs. (But since this continually happened, usually forever)

What makes me laugh is how people defend Verizon out of fear of inferior service. 

[Deval]

It's a fact of life that Verizon does offer a more consistent network experience than any of the other carriers. Because of that consistent nature, they will continue to price themselves above everyone else. Everyone I know on Verizon would never give them up because it just works for them.

 

At Home Depot and want to do a quick Facetime call to ask a question, sure will work 100% of the time on Verizon.

 

While the urban base will ebb and flow, the vast majority of their user base will continue to pay their bills gladly, having the safety blanket that their network will always work for them.