Verizon Confirms 12-Month No Contract Smartphone Payments
Verizon is adding $350+ smartphones to its Device Payment Plan setup starting Sunday.
Right after Verizon said that it will no longer offer early upgrades as of January 2014, the company updated its original blog to include new information about buying devices via a monthly installment. This move is undoubtedly in retaliation to T-Mobile's new "un-carrier" plan which doesn't require a contract, but instead binds the customer to the company via a monthly payment plan for the hardware.
According to Verizon, beginning April 21, customers will have the option of purchasing a phone at full price at any point before their contract expires. Some devices will be available for purchase through the Verizon Wireless Device Payment Plan, requiring the customer to make twelve monthly payments with a finance charge of $2.50 per month.
Currently Verzion's FAQ states that only tablets with a retail price of at least $349.99 and the Samsung Galaxy Camera are eligible in the Device Installment Program. Customers can purchase up to two qualifying devices at a time, and once one device is paid off, they may be eligible to purchase another before completing the payment plan for the second device.
"The first installment and finance charge is due at the time of purchase," the company states. "Subsequent installments and finance charges will appear on your monthly Verizon Wireless bill and will be listed separately from your other charges. Qualifying devices must be $349.99 or more per device, after all discounts and promotions and before taxes are applied."
The Verizon blog implies that Verizon may include a number of smartphones in the plan starting this coming Sunday, but so far the Device Payment Plan FAQ says differently. However a Verizon rep confirmed on Tuesday with Tom's that yes, this Device Payment Plan will also include all smartphones retailing $349.99 or more after discounts and promotions, effective April 21, 2013 (thanks Tiffenie).
Earlier this month, Verizon CEO Lowell McAdam hinted to a move to an "un-carrier" offering by saying that it would be easy to slip into a similar non-contract mode… but only if there is a consumer demand for such a scheme. "I'm happy when I see something different tried. We can react quickly to consumers' shifting needs," he told reporters.
He wasn't kidding, was he?
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Kevin Parrish has over a decade of experience as a writer, editor, and product tester. His work focused on computer hardware, networking equipment, smartphones, tablets, gaming consoles, and other internet-connected devices. His work has appeared in Tom's Hardware, Tom's Guide, Maximum PC, Digital Trends, Android Authority, How-To Geek, Lifewire, and others.
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hrhuffnpuff Well, I think that is good and stuff, just not for me. Since I signed my life away to them for another 2 years.Reply -
sykozis Sorry Verizon. Not good enough. T-Mobile finances for 2 years with no price restriction or finance charge.Reply -
whiteodian It's just another contract. What these carriers really need are better prices. I was paying AT&T about $100 a month for a 3 year old iPhone 3GS. Switched to Straight Talk while still using the iPhone and now pay $45 a month. I bought a Nexus 4 at the beginning of the year and still loving it. I've done the math and over a 2 year contract, I will save $900+ compared to AT&T.Reply -
Paul S1 I switched to T-Mobile as soon as their no-contract model was released, and my monthly service is now cheaper than than it was before, which included a corporate discount. The service has been excellent, and I am very happy with my new Z10 and T-Mobile. This is exactly what I have been waiting for.Reply -
Paul S1 And for the other carriers, still ripping you off on the monthly service or limiting the devices defeats the whole purpose of this model.Reply -
bentonsl_2010 So unlike t-mobile you don't get to save money each month when you by your phone outright(Unsubsidized). You still have to pay retard amounts of money (The Subsidized amount) as well as a monthly "Phone Bill" Bill..........LMAO How many morons will fall for this and think they are saving.......... Sad world we live in.Reply -
sykozis Reply10674353 said:10674297 said:Sorry Verizon. Not good enough. T-Mobile finances for 2 years with no price restriction or finance charge.
Verizon's service is 10x better. T-Mobile isn't going to survive as a stand alone company.
It's that "10x better service" that caused me to switch to T-Mobile. With Verizon I had constant problems over the last few years... Hell, my last "cellphone" could barely function as a phone. So far, with T-Mobile, I've had no issues. -
house70 One can not bring their old phone and get only a service contract. With any GSM network, one can bring their phone, get a SIM card, put it in and you have a registered phone. That's why their offer still includes the monthly phone bill, after paying the price for the phone. It's the same money, just laid out a bit different.Reply