Petition to get Verizon to dump contracts and subsidies has 75,000 signatures
Earlier on Wednesday, we told you that Verizon had made a change to its smartphone purchasing plans that would allow a customer, under certain circumstances, to pay for a device over a 12 month period. The first installment would be due at the time of purchase and the device being bought must have a retail price of $349.99 or higher. In addition, customers would be allowed to have two installment purchases going on at one time. As soon as on is paid off, another purchase could replace it.
T-Mobile recently made a change to the structure of the data plans on its network by eliminating two-year contracts and allowing customers to leave the carrier at anytime. But even though they leave, their device may not be able to. Eliminating subsidies, T-Mobile now charges a down payment for a device with the balance paid off in monthly installments. Until the device is paid off completely, it remains locked to the T-Mobile network. As an example of how this works, for the 16GB Apple iPhone 5, T-Mobile customers put down $99.99 and pay off the balance in 24 monthly installments of $20 each.
source: Change.org via BGR
The petition demanding that Verizon stop subsidized pricing and put an end to two-year contracts has 75,000 signatures
1. james1 (Posts: 36; Member since: 16 Mar 2013)
This might make a lot of Verizon customers switch carriers if Verizon new plan doesn't change.
35. Daftama (Posts: 540; Member since: 03 Nov 2012)
I hope so they need lose about 10mill or so to realize...eventually the bigger they the harder they fall cant for the day the hit rock bottom
40. bluescreen (Posts: 151; Member since: 22 Nov 2012)
i still cant figure out how doing this is going to save the consumer any money aside from the fact that u can leave at any time u want to....if i go from verizon to like say tmobile how is my cell gonna work on tmobile?
51. Larry_ThaGr81 (Posts: 294; Member since: 26 May 2011)
The money savings will be noticeable in the pricing difference of the plans. The idea of no longer being locked into a 2 year agreement sounds really good. Of course you have to pay the phone off first but that will be the one limiting factor as oppose to a specific amount of time that has to pass.
54. bluescreen (Posts: 151; Member since: 22 Nov 2012)
so if u have no plans of leaving verizon anytime soon i can still get a 500 dollar smart phone for 200? thats all i really care about for now as i dont see going to another carrier in the near future
43. Rockbottom97 (Posts: 15; Member since: 08 Jan 2013)
Yes and no. Verizon Wireless is the only profitable arm of Vodafone right now with talks of Verizon Wireless buying themselves out or Verizon Wireless and ATT buying Vodofone.
They might be the largest carrier but they also have the largest network. So until ATT/Sprint/TMo can match them on a quality level (ATT with HD Voice for example).
But, Verizon Wireless as VoLTE waiting in the wings either this fall/winter or next year.
I would love to see contracts fall I just don't think its reasonable. A rep that works for the indirect channel for ATT told me to walk through Best Buy and see how many phones are marked Free compared to the ones with a price tag. He was right, there are more FREE phones than ones you pay for. Consumers expect there Wireless carrier to pay for there device, the plan is secondary.
56. Larry_ThaGr81 (Posts: 294; Member since: 26 May 2011)
The FAQs page states that the Device Installment Program allows consumers to purchase a new tablet or the Samsung Galaxy Camera.
Consumers want the Device Installment Program to apply to all devices.
49. jcarrigan (unregistered)
well the problem is if they dont change the prices even alittle to be more competetitve with the other carriers because everyone has to pay an additional fee every month for the phone they bought. I know that i am hesitant to renew my 3 lines with verizon and im thinking of just sacrificing my 4g lte speed and consistant signal for sprints affordability and unlimited data.
50. Larry_ThaGr81 (Posts: 294; Member since: 26 May 2011)
I know I would if I wasn't under contract and in the market for a new phone.
57. Larry_ThaGr81 (Posts: 294; Member since: 26 May 2011)
The sad part is they won't make any major changes until they suffer a financial setback that they can contribute to what they aren't doing that other carriers are doing.
2. stealthd (Posts: 818; Member since: 12 Jun 2011)
Signing a petition is easy. I highly doubt that many people would actually take the effort to switch.
47. Droiddoes (unregistered)
I wonder how many iof them actually understand what a subsidy is, because I really do not think they do. I think they are like 90% of the wireless customer base who just b*tch piss and moan about contracts and do not undersatnd WHY they are signing the contract. People are idiots.
58. Larry_ThaGr81 (Posts: 294; Member since: 26 May 2011)
If I didn't have 4 out of 5 of my lines under contract, I'd be gone already. By the end of this year I will have 3 of those 4 phones beyond their 24 months. VZW made the decision for me to stop signing two year contracts when they said I would loose my unlimited data with a new two year agreement.
3. a_merryman (Posts: 509; Member since: 14 Dec 2011)
And then Verizon looked at this and said "Great idea, we will get rid of subsidies so you can pay the full price of the phone up front. But we wont lower the price of our plans....oh yeah, the phone will only have cellular bands that work on our network. Enjoy ^_^ "
9. Penny (Posts: 951; Member since: 04 Feb 2011)
^This. I don't get why people are not getting it. 75,000 of my fellow Verizon users are about to screw us all.
20. TROLL (banned) (Posts: 4851; Member since: 13 Apr 2012)
But Verizon is a brand, and expensive aswell as know for prestige users, just like Vodafone here in UK is expensive, but you get better coverage and 3G speeds are better than o2 Tmobile Orange and Virgin, 3 is also good for data. Then comes 2nd Orange™
34. Droid_X_Doug (Posts: 5148; Member since: 22 Dec 2010)
They must have over-dosed on stupid pills.
10. 14545 (Posts: 975; Member since: 22 Nov 2011)
Exactly. This is my problem with this whole ending subsidies BS. I wouldn't have an issue if I could jump to ATT/Tmo/whoever with the phone that I paid for outright. I also wouldn't have an issue if they lowered the price of the plans for not making them subsidized the phone. But noooooo, VZW won't do either. They will charge full price for the phone, and the plan, and charge me a "finance" charge for possible payments. Where Tmo gives you an "interest" free loan and service discount for buying their phones off contract. VZW just asks you to bend over and let them see how far they can get that root up you @!!.
17. MartyK (Posts: 665; Member since: 11 Apr 2012)
Wow!, someone else who see through Verizon tricks..can't believe they have the audacity to charge finance fee to buy their phone and won't lower their plans...smh
This is a very greed company!.
36. Daftama (Posts: 540; Member since: 03 Nov 2012)
Ppl are morons at least with tmobile phones you can resell vzw most phones you cant...they is how dump ppl are they rather pay a full price for the phone rather pay $200 foe the phone and if they want to they can at any time termation fee 350 total price 550...hmm full retail price plus interest 550-600...if your not happy than switch its the same as paying full price but screw the ones that want the two yr and lower price on phone. ...vzw always will screw theresl customer I know first I used to work for them
4. DigitalBoy05 (Posts: 200; Member since: 04 Jun 2011)
I've already signed it :) No contracts will make reps work harder to keep their existing customers happy which is another win for us. Its easier to tell someone to piss off when you know you have them for another year etc on their term when something goes wrong.
37. Daftama (Posts: 540; Member since: 03 Nov 2012)
No sorry we work harder we could care less what type of changes they do...we still get paid. ..it will be a higher pay out for now to make ppl pay full price than slow reduce it...in the end we will make want we want..we got over 100mill customer do you think we will harder ppl coming wantong vzw we dont have to sell shhhhhttt
44. Rockbottom97 (Posts: 15; Member since: 08 Jan 2013)
Interestingly, a known fact is reps do not get credit for customers that buy full retail phones. I wonder if this that same rule would apply to them since it is up to reps to actually run the check.
5. BadAssAbe (Posts: 434; Member since: 22 Apr 2011)
They should lower plan rates if there phone is fully paid off.
ATT and Verizon are the worst but still not as bad as the cable companys
6. a_merryman (Posts: 509; Member since: 14 Dec 2011)
Being slightly better then the cable companies is like being the skinniest kid at fat camp.
7. TheMan (Posts: 336; Member since: 21 Sep 2012)
I'm still not convinced that this is a win for customers. For one thing, the VZW CEO sounds too eager to switch. The economics in subsidizing iPhone purchases has already been shown to not favor carriers, so shifting the burden to consumers whether by not subsidizing purchases or by delaying upgrade eligibility is a win for them.
Second, when I run the numbers for my TMO customers, too often the monthly payout is the same whether no-contract or not, thanks to the equipment installment plan. Plus, until 24 months elapse it costs more to leave TMO with a non-contract than a contract plan (assumes you've bought a decent smartphone and paying $20/mo over 24 months), Bottom line: No contract is an advantage for those who bring their own device or like to keep a device over 2 years.
Basically, this won't be a consumer advantage until consumers have more freedom with their phone choices (buying and selecting) or until carriers get out of the device business. As if Verizon will let that happen anytime soon.
8. Hemlocke (unregistered)
Don't single out the iPhone. The Android flagships are just as expensive, if not more expensive.
11. dok2005 (Posts: 55; Member since: 18 Apr 2012)
if not more expensive please point out more expensive android phones than iphones i mean yes the parts are more expensive but the price please cite examples
53. Larry_ThaGr81 (Posts: 294; Member since: 26 May 2011)
True, but you get more for your buck
13. TheMan (Posts: 336; Member since: 21 Sep 2012)
True, e.g., HTC is notorious for some of its pricing to carriers. The Note II price was also seen as "aggressive." Unfortunately, the industry studies have focused on the iPhone series, but you're right: It's a growing issue regardless of OS for the carriers, which is why they predictably don't wish to subsidize.
48. Droiddoes (unregistered)
Right, but carriers and retailers actually MAKE money off of Android and, well, EVERY other manufacturer except rotten greedy apple. They get the "priveledge" of selling their crap.
14. 14545 (Posts: 975; Member since: 22 Nov 2011)
Losing contracts is a step towards getting them out of the device business and allowing the prices to come down. As the manufacturers will have to start being more mindful about charging 600 dollars for a phone as an "average" customer won't/can't afford that. However, VZW is doing everything they can to stick it to us. I'm just curious as to how far their customers(including myself) will be pushed before they have a mass exodus. Also, I'm not sure where you did the math, but even *if* I didn't buy a phone outright on Tmo for all three of the lines I move over, I still come out ~50 dollars cheaper a month than VZW. Also, you can still sell the devices you have on Tmo if you leave, with VZW you have to pay a backloaded ETF. (by backloaded, I mean an ETF that is still essentially 200 to buy out even 18 months in.) So I'm confused about your comment.
52. Larry_ThaGr81 (Posts: 294; Member since: 26 May 2011)
VZW eagerness comes from the fact that they could potential loose a lot of customers over this installment plan system because it empowers the customer to decide when they want to leave. Using your own calculations that calculates the payout to be the same, as a customer I still like the idea of saying let me pay off this phone so I can move on to a less expensive carrier as oppose to damn I have another 18 months left on my 2 year contract. The longer I stay with VZW, the more likely it is that some awesome phone is going to come out and make me reconsider my position on leaving the carrier.
12. rick2340 (Posts: 21; Member since: 06 Mar 2013)
So Verizon will get rid of the subisidies so the consumer can pay full price for the phone over 24 months while Verizon doesn't lower the price of their plans. Also, their phones work only on their network. So how is this a better deal?
15. 14545 (Posts: 975; Member since: 22 Nov 2011)
Don't forget charging you a "finance" charge in addition to the loss of subsidies.
55. Larry_ThaGr81 (Posts: 294; Member since: 26 May 2011)
According the VZW Device Installment FAQs, the finance charge will be $2.50 per month for 12 months or until the balance is paid off.
18. TheMan (Posts: 336; Member since: 21 Sep 2012)
One hope: Now that the major American and European carriers are in the process of implementing the 4G LTE protocol it might make it easier to migrate from one carrier to another and mark a return to "world phones" for VZW and Sprint. For example, the Verizon Galaxy S3 is unlocked (according to VZW customer service). All I need do is insert a local SIM card to use it in Europe. I don't know what restrictions I'd face, but I suspect if any exist a hardware change to future models would eliminate these remaining barriers.
21. Whateverman (Posts: 3150; Member since: 17 May 2009)
The restriction would be here in the US. VZW's "world phones" will work on every other carrier in the world... That is until you step foot on US soil. Then VZW bands are the only bands that phone will work with. Hopefully that would change, but I don't have much faith in them anymore.
26. JunitoNH (Posts: 707; Member since: 15 Feb 2012)
+one for you my friend, you said it better.
16. jphillips63 (Posts: 129; Member since: 04 Jan 2012)
Not only will you pay same price for your usage as always. Without a contract Verizon can make pricing changes anyway they see fit since you all aren't bound to a locked in price on contract. Verizon or any company that makes changes aren't in our benefit but theirs and the share holders.
If you wanna buy your phone and not be on contract just do so they allow that now. If you can't afford full retail then live within your means and get something you can afford.
22. TheMan (Posts: 336; Member since: 21 Sep 2012)
Even now, with a basic flip phone priced at $200 and a smart phone over $500, Americans are not used to paying full retail for their mobile devices. I sometimes wonder if subsidies were totally eliminated whether the softer demand would create a price reduction.
I've concluded that the reduction would be minimal because our no-contract prices are in line with the rest of the world, which mostly does not subsidize. And for that reason, I don't see subsidies disappearing soon, but someone's going to have to bear the expense and it won't be the Big 4.
29. _PHug_ (Posts: 380; Member since: 11 Oct 2011)
"Americans are not used to paying full retail for their mobile devices"
Speak for yourself.
I'm not drowning in credit card debt and I buy my phones straight out. My parents taught me the value of a dollar
30. a_merryman (Posts: 509; Member since: 14 Dec 2011)
OK, good for you. You arent most Americans though...
45. Rockbottom97 (Posts: 15; Member since: 08 Jan 2013)
I agree @TheMan - Like I mentioned earlier. Walk through a Best Buy kiosk and count how many phones say Free compared to ones with an actual price tag.
Consumers still expect there Wireless Company to pay for there service since they constantly see the word FREE in every add and advertisement for most phones we would consider low tier.
19. Whateverman (Posts: 3150; Member since: 17 May 2009)
Tell me that no one really believes that VZW will lower their plans to something reasonable after your done paying for your phone? Then also, what happens to the family of 5 signing up for new contracts? If your only allow to "finance" two devices at a time, what about the second and third lines on the account. And what about the unlimited customers? Are they going to be allowed to finance their devices and keep their "grandfathered" status?... I doubt it.
25. TheMan (Posts: 336; Member since: 21 Sep 2012)
Currently, VZW does not reduce service rates when you've paid off your phone. I won't expect them to do so unless AT&T does so first or if T-Mobile gains incredible market share because of their plans.
As for the family of five or 10, since Verizon allows 10 lines per account shared plan, I also wondered about the restriction to two lines been financed.
24. InspectorGadget80 (Posts: 5457; Member since: 26 Mar 2011)
glad i'm not on Verizon. he's such a greed a$$hole. I just hope AT&T won't follow sue. or I'm switching too prepaid. I'd rather pay 200$ for a 2 yr contract than paying FULL PRICE
27. TheMan (Posts: 336; Member since: 21 Sep 2012)
You do realize it until about a year ago Verizon and AT&T copied one another's plans and policies to the point that service costs was virtually the same. They've diverged somewhat in the last 11 months but the difference isn't that great.
Given AT&T's tight financial situation, made worse by the cost of failing to acquire T-Mobile, I expect AT&T to have a similar announcement.
28. _PHug_ (Posts: 380; Member since: 11 Oct 2011)
If Verizon is still charging the same price for their service then what's the point?
31. dok2005 (Posts: 55; Member since: 18 Apr 2012)
the illusion that you can upgrade anytime you want as long the other phone is paid off. the fact is that not only they making a profit off your service but they go make a profit off your phone as well, especially if they dont change the price of the plans.
39. Daftama (Posts: 540; Member since: 03 Nov 2012)
They always jack the price than what they pay for it so the get it for 500 they make it 550 there is is non win for customers 75000 are stupid and retard
32. johnriii (Posts: 216; Member since: 17 Oct 2011)
common sense would dictate that the other major carriers will eventually follow suit. it's just a matter of time. jumping ship may save you a bit of heartache, but inevitably, they are ALL out to make as much money as possible.
33. ap1989 (Posts: 143; Member since: 12 Oct 2011)
f**k VERIZON I WANNA KEEP MY UNLIMITED DATA wit out paying $700
41. gwuhua1984 (Posts: 1237; Member since: 06 Mar 2012)
I doubt the petition will do any good, it's a business decision... the government usually doesn't butt into business decisions.
42. gwuhua1984 (Posts: 1237; Member since: 06 Mar 2012)
That reminds me... years ago, there was a petition for the government to stop carrier device exclusivity. Well, it got enough signatures, exclusivity is still around.