I am a member of Verizon’s Influencer Team #VZWBuzz and I receive phones and other accessories from time to time to review. No compensation has been received for this post. Please note that, as always, any personal opinions reflected in this post are my own.
One size never fits all. I hate clothes that are labeled that way, and generally won’t buy them. One size can fit many. It might even fit most. But it never fits all. Verizon recently introduced a new pricing structure that reminds me of clothing sizes. Their announcement provoked a flurry of online discussion about doing away with 2-year contracts as well as no longer being able to buy phones at a discount by signing a contract. That was a lot of info in one sentence, wasn’t it? Let’s look at it one piece at a time.
New Verizon Wireless Pricing Structure
Instead of offering many different plans to customers,Verizon is now offering customers the new Verizon Plan, which has a choice of four different options:
- SMALL – 1 GB for $30/month
- MEDIUM – 3 GB for $45/month
- LARGE – 6 GB for $60/month
- XLARGE – 12 GB for $80/month
The customer should choose which of the four options best fit his (or his family’s) data consumption. All plan sizes include unlimited talk and text. Data may be shared among family members. If you and your family need more data, you can switch sizes any time. On top of the plan’s fee, each smartphone line is an additional $20 per month. Customers can also add a tablet or Jetpack for $10 per month, and a smart watch or other similarly connected device for $5 per month.
An article in the Denver Post helps explain the decision to change the plans that Verizon Wireless offers.
The new prices seem to save customers about $20 a month but savings, of course, will vary based on what the customer buys, said Meagan Dorsch, a Verizon spokeswoman. But it’s easy-ish to figure out.
The equation is essentially: Device plan + data plan + voice/text plan = your monthly bill.
“This new approach will keep our plans competitive and future proof because of their flexibility. Customers can decide at any time whether they want to move to a S, M, L or XL plan. And they can add devices at any time and share data among up to 10 devices,” she said.
Has Verizon Wireless Done Away With 2-Year Contracts And Subsidized Phone Deals?
Not entirely.
New customers do not have to sign a contract to come over to the Verizon Wireless network. That’s pretty sweet for folks that aren’t satisfied with their current coverage but are also wary of signing a new contract with a carrier they aren’t personally familiar with.
But what about current Verizon Wireless customers like me? Much of the online buzz on the recent pricing announcement was saying that there were no contracts, and no deals on phones made possible by signing a contract. This concerned me greatly. Traditionally I have only ever upgraded a phone by renewing a 2-year contract. I have no qualms whatsoever about signing a contract with Verizon Wireless. I have tried all of the other major carriers in my area. I have been with Verizon Wireless for over ten years now, and the coverage in my area offered by the other carriers is not nearly as good. I try to be careful with my money, and never, ever, ever pay full price for a mobile phone. So what would no subsidized phones mean for me? A big out of pocket expense. Which would never happen. Fortunately for me it turns out that much of that discussion saying contracts were dead and subsidized phones were no longer available were incorrect.
As explained in a Verizon Wireless blog post dated 8/26/15, current Verizon Wireless customers may keep and even renew their 2-year contracts, and take advantage of any offers currently available for subsidized devices. If you’re a current customer that wants to add a new line you simply add it to your existing price plan.
Current Verizon Wireless customers that want to move to the new Verizon plan may do so at any time. Those customers are able to upgrade to a new device as well. Their devices may not be as inexpensive as they’d hoped, but they will be able to spread payments for the cost of the new phone out over 24 months, with no interest. The customer may upgrade again as soon as they’ve paid off their previous upgrade. It is important for current Verizon Wireless customers to know that once they switch over to the new Verizon Plan they will not be able to go back to their old plan. That last part bears repeating. If you are a current Verizon Wireless customer and switch to the new pricing you cannot go back to your old plan.
A Word Of Advice
As always, consumers (no matter what carrier they’re currently with) should go over their usage, current plan and current contract carefully before making decisions like this. They should also read details of any new plan they’re considering as well. Any questions they have or clarifications they need should be directed to the appropriate carrier. A customer must be fully informed in order to determine what will save them more money in the long run.
I’m under contract with AT&T. I am going to change when my contract is up because my rate is not that great.
I am under a contract with another and I just signed on! I really wish I hadn’t now, mine really sucks in comparison!
This is a great explanation! I love that they are going this way everyone has different data needs.
I love these prices!!! I can’t wait until my plan with my current provider is up.
Sounds like affordable prices. I have never been on the Verizon network but have friends that have used the service for years.
That is a whole lot of change going on at Verizon. They entered the market here in Alaska last year, but have not offered the full compliment of services yet. I’ll have to stop by one of the local stores to see if this new pricing plan is rolling out here as it is MUCH more affordable that some of the other options.
Yes. and I have learned to ask questions and not believe all I hear as well as everthing reps say will be better for me. Just the facts please and the loopholes then let me judge.