Verizon No Longer Offering Two-Year Contracts
Photo: inwallspeakers1.com

Verizon Wireless is forever changing the way you pay for your cellular service.

On Friday, Verizon introduced new data plans that force customers to buy their phones in full or pay for it in monthly installments. The new plans go into effect August 13.

It changes everything at Verizon, who used to require smartphone subsidies and service contracts.

Two years ago, T-Mobile started the trend of paying for your phone in full to avoid the contracts.

There are no longer single-line or family options. The packages will be available in four options. The 'small' will get 1gb of data for $30/mo, the 'medium' will get 3gb of data for $45, the 'large' will get 6gb of data for $60/mo, and the 'x-large' will get 12gb for $80/mo. All packages come with unlimited talk an text.

There will also be an 'access' fee for each device. The cost for a smartphone will be $20/mo, a tablet or Jetpack portable Wi-Fi hotspot will be $10, and a 'connected device', such as a smartwatch, will cost you a monthly $5.

It seems odd that they would top off the data at 12gb, but Rob Miller, Vice President of Pricing and Promotion, says that larger data options will be offered in stores by associates. It is unclear whether the options will be for sale or not.

This decreases the cost of the data packages, but increases the cost of the device for the consumer. Before, if you purchased an iPhone 6 with a two-year contract, it would cost about $200 at the time of purchase. Now, it will cost you $650.

However, the data is now cheaper. The 3gb plan is now $5 less per month, and the 6gb plan is now $10 less. $80 a month will now get you 12gb rather than 10gb. However, if you had a family plan with 6gb of data, you would see a $5 increase. If you have a large family, that adds up quickly.

The access cost is now simpler. It used to be $40/mo if you signed a contract, $25 if your plan is 4gb or less, or $15 if your plan is 6gb or less. It is now $20 for every smartphone.

This comes after T-Mobile has added a plan that gives each line 10gb of data.


Are you thinking of switching to Verizon, or do you have it already? Will you switch to the new plans? Tweet us at @VAVEL_Tech with the hashtag #VAVELTech, and make sure follow us for more on the world of technology!


Jack Griffin is a writer for the VAVEL USA Technology and Music sections. Follow him on Twitter at @jacksonlgriffin.

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