Leaked document shows T-Mobile style smartphone plan is coming to Verizon?
Device Payment Plan. This apparently would allow a Big Red subscriber to pay the full retail cost of a new device over 12 months, although it is not known if there would be a down payment made first. T-Mobile recently launched its new plan where account holders make a down payment for a new device and then pay the balance off in monthly installments. For example, the 16GB Apple iPhone 5 would require a down payment of $99.99 and a $20 payment made over 24 months. Verizon customers currently pay a subsidized price of $199.99, but must sign a two-year contract with the carrier. While T-Mobile customers do not have a contract, they cannot get their phone unlocked until it is completely paid off.
There is no guarantee that the leaked training material is current, or that Verizon will go ahead with such a plan. And if the carrier does go ahead with this option, it doesn't necessarily mean the end of subsidized pricing at Verizon. T-Mobile has kept two-year contracts and subsidized pricing for nationwide retailers like Best Buy because of problems third party stores would have with keeping track of installment payments and commissions.
1. Droid_X_Doug (Posts: 5282; Member since: 22 Dec 2010)
I think if the T-Mo style smartphone plan comes to VZW, it will be one of their offerings (not the only offering). Stay tuned.
9. PAPINYC (Posts: 2044; Member since: 30 Jul 2011)
Yep, because Verizon is not going to limit their customers the same way as Tiddie-Mobile. I guess, in a way, this would be like a 1 year contract without subsidy; meaning that they will lock down the ESN/IMEI for 12 months until the device has been fully paid. After full payment has been completed, you are free to do with it what you will (sell / unlock); you are no longer bound to a contractual obligation; and, the device is no longer at liability with the "COOS" department.
I'd still rather just pay the $700+ up front because the installment plan would tack on roughly an extra $60 to my low monthly bill for Unlimited Data.
2. Penny (Posts: 988; Member since: 04 Feb 2011)
Guys, do you see how fast Verizon is jumping on this train after T-Mobile made it official? They can't wait to stop subsidizing their phones, because they probably have no intention of reducing the monthly cost either. The real world result for us is yet another $40 jump in monthly charges.
3. jwl3429 (Posts: 36; Member since: 28 Sep 2009)
That is right verizon will still continue to screw the customer. I wish tmobile service was better where I live and travel. I would leave verizon real quick.
6. jwl3429 (Posts: 36; Member since: 28 Sep 2009)
Upsate NY service is mostly good but I have dead spots near families houses and when I travel near the PA border. .
7. lovenyc8 (Posts: 164; Member since: 13 Mar 2013)
keep checking your coverge on there website maybe soon they will improve it in your area. i live in New york the service here is amazing. but i guess for you because you upsate
21. DonLouie (Posts: 594; Member since: 22 Dec 2008)
Sprint has NY covered and have roaming as well as LTE live and expanding there. They have cheaper, more all inclusive plans with deep discounts available and no contract option that is unlimited that includes roaming for $50 and $70
24. Atrixboyyy (Posts: 227; Member since: 03 Nov 2011)
Don as much as id like to just simply agr3 with you i cant. tmo has indeed stepped up their game in terms of coverage tho the spotty part hasn't changed much... Sprint on the other hand has to be the worst with coverage I can leave my girlfriends phone on the bed and here it enter "roaming mode" for no reason and don't even get me started on WiMax.
25. DonLouie (Posts: 594; Member since: 22 Dec 2008)
I can't speak on NY, only Midwest, Sprint has been actively implenting network upgrades. I had lots, still some to this day but there's been marked improvement in 3G and 4G....
11. JunitoNH (Posts: 757; Member since: 15 Feb 2012)
+ one for you, sir. Couldn't have said it better. No more subsidies, same old price.
12. Droid_X_Doug (Posts: 5282; Member since: 22 Dec 2010)
$40 increase in rates could happen if 4 national carriers drops to 3 if T-Mo is acquired by Sprint. If 4 major carriers are still the business model, I would think VZW could poach customers from the other 3 by offering lower monthly rates with no subsidy. They may not do it, but the opportunity is there.
15. ajac09 (Posts: 1212; Member since: 30 Sep 2009)
Luckily tmobile wont be aquired by sprint.
30. jsd0108 (Posts: 19; Member since: 11 Mar 2010)
That makes no sense from a business perspective. Drop prices for 90 million to 100 million customers to gain some customers from a competitor? Yes, I'm sure it would attract some new customers, but not enough to overcome the loss in revenue from reducing the prices for the existing 90 to 100 million customers.
20. Daftama (Posts: 546; Member since: 03 Nov 2012)
The bigger they are the harder they fall cant wait for the day VZW falls
5. mydi.maus (unregistered)
BIG RED going TO COPY.
8. ardent1 (Posts: 1983; Member since: 16 Apr 2011)
The current business model of 2-year contract in exchange for discounted smart phone became broken when people realized android smart phones don't hold their value after 2 years. Given the rate of new android devices with better specs and lower prices, people don't want to be trapped in a dated phone for 2 years. All you have to do is look at the churn rate for android handsets.
27. Lboogey6 (Posts: 245; Member since: 31 Jan 2012)
That's not the best way to look at churn when there are multiple androiddevices low mid and high end think about it ifthey tookandroid off you wouldhave only iPhone two Windows phone and a blackberry not much of a selection then qualifying the customer plays a big role giving an adult a $29 smart phone and they try to compare it to an iPhone it's notgoing to work. guarantee the newer of the galaxy devices holding their value the gs2 is getting jellybean keeping up with the time and the phone is two years old if you might be finally having battery problems swap it out. iPhoneusershavingbattery problems are kind of out of luck
10. Galen20K (Posts: 504; Member since: 26 Dec 2008)
While Absolutely Verizon is the biggest carrier in the USA and has the most people, think about just how much money they're losing on the subsidy hit they take on each one of those customers. Huge or not, Verizon takes a giant loss per customer on subsidies even if their plans are more expensive. They're definitely working towards getting rid of that loss(subsidies) in the future, this is mearly the first step towards that. Could take a while however..
13. o0Exia0o (Posts: 275; Member since: 01 Feb 2013)
How do you figure even with subsidies and a huge hike on rates of their plans that VZW is taking a loss. I have 2 phones on my plan that I currently pay $140 a month for. One has unlimited data the other does not. If I were to upgrade, give up my unlimited plan, and start a share everything plan my bill would jump to $170 and that's with just a 2 GB share everything plan. Granted that I don't usually use over 2 gigs a month but I don't want to pay more for what I already have. Also since my plan has been discontinued the only way I can get a new phone is to pay the full price for the phone. So if they end subsidies and keep the same pricing on their current plans how do you figure that would be fair to their customers.
14. president24 (Posts: 1; Member since: 14 Apr 2013)
2gb plan with unlimited talk and text is 60 two smart phones is 80 40 + 40..... 60 + 80 = 140 with 2gb...... 140 + 10 = 150 for 4gb plan
19. Whateverman (Posts: 3158; Member since: 17 May 2009)
I think he's saying 170 after taxes. The plans always look competitive before VZW adds all the taxes on, and it always seems they have more taxes than other carriers.
17. g2a5b0e (Posts: 1929; Member since: 08 Jun 2012)
That's just ridiculous. They may be losing a little bit initially, but by locking you into a stupidly overpriced 2-year contract, they're coming out WAY ahead in the end. And seeing as how there are tons of customers around the nation who currently have no choice but to choose Verizon due to coverage issues with other carriers, Verizon is doing anything but losing right now.
18. derrph (Posts: 6; Member since: 29 Jun 2012)
Verizon will always try to squeeze every penny from their customers. But I do give them credit for the marketing in providing service to people in states where AT&T, Sprint and T-mobile have little or no coverage in. So it pretty much makes them sign up with Verizon if the customer does not want to take the prepaid route. But their prices are ooc(out of control). I am so glad that I live in Ohio because I have a choice in what carrier I want to have because their coverage is really the same. I think T-mobile has really started something and Verizon is the fist ones to keep a close eye on them.
22. DonLouie (Posts: 594; Member since: 22 Dec 2008)
It would be funny if this becomes the only option for those with unlimited plans still to get a new phone through them. Then all the stalwarts like PAPINYC will lose their cushy plans unless going through some third party or used route....
23. cheeseycheeser (Posts: 334; Member since: 24 Mar 2011)
The big issue with this this is that unlike T–Mobile, the plans will still be the price of a plan with a subsidy PLUS the cost each moth of the phone. ._.
26. jcpwn2004 (Posts: 314; Member since: 18 Jan 2012)
exactly....plans will cost the same but now phones will be 600 instead of 200. Screw verizon.
28. jsd0108 (Posts: 19; Member since: 11 Mar 2010)
This is barely news. Verizon already has an installment plan for tablets that are over $349.99 and the galaxy camera. The customer has to have excellent credit and they pay a small monthly finance fee ($2.00 to $2.50 per month I think) and they can have up to $12 monthly payments with the first monthly payment due at purchase. I'm sure this new thing is just an expansion of that program.
29. jsd0108 (Posts: 19; Member since: 11 Mar 2010)
That makes no sense for a business perspective. Drop prices for 90 million to 100 million customers to gain some customers from a competitor. Yes, I'm sure it would attract some new customers, but not enough to overcome the loss in revenue from reducing the prices for the existing 90 to 100 million customers.
31. raskob2 (Posts: 2; Member since: 25 Feb 2012)
Who cares about how this compares to T-Maybe, this is just another great option for Verizon customers! Better to have than to not.