Leaked document shows T-Mobile style smartphone plan is coming to Verizon?

Leaked document shows T-Mobile style smartphone plan is coming to Verizon?
Just the other day, Verizon announced that in January it would eliminate early upgrades allowed 20 months into a 24 month contract. At the same time, the CEO of the parent company of Verizon Wireless, Lowell McAdam, said that it would be easy to take Verizon off two-year contracts and subsidized pricing. It was back in January when McAdam said that cutting subsidized pricing would be a great thing. Now, in what appears to be a training document for Verizon reps, a payment plan of 12 months in length is being referenced.

According to the document, among the choices that reps are to suggest to Verizon customers who want the latest and greatest smartphone is the 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.

source: Droid-Life

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30 Comments

1. Droid_X_Doug

Posts: 5993; Member since: Dec 22, 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: 2315; Member since: Jul 30, 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: 1869; Member since: Feb 04, 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: Sep 28, 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.

4. lovenyc8

Posts: 164; Member since: Mar 13, 2013

where you live which area?

6. jwl3429

Posts: 36; Member since: Sep 28, 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: Mar 13, 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: Dec 22, 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: 615; Member since: Nov 03, 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: Dec 22, 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: 1946; Member since: Feb 15, 2012

+ one for you, sir. Couldn't have said it better. No more subsidies, same old price.

12. Droid_X_Doug

Posts: 5993; Member since: Dec 22, 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: 1482; Member since: Sep 30, 2009

Luckily tmobile wont be aquired by sprint.

30. jsd0108

Posts: 19; Member since: Mar 11, 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: 641; Member since: Nov 03, 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: 2000; Member since: Apr 16, 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: 281; Member since: Jan 31, 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: 579; Member since: Dec 26, 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: 903; Member since: Feb 01, 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: Apr 14, 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: 3295; Member since: May 17, 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 unregistered

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: Jun 29, 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: Dec 22, 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: 413; Member since: Mar 24, 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: Jan 18, 2012

exactly....plans will cost the same but now phones will be 600 instead of 200. Screw verizon.

28. jsd0108

Posts: 19; Member since: Mar 11, 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: Mar 11, 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: Feb 25, 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.

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