RIP: Two-year contracts at Verizon are dead; activation and upgrade fees rise 50% to $30
by Alan Friedman / Jan 07, 2017, 7:42 PM
T-Mobile was the first to offer EIPs and it also was the first to do away with two-year contracts and subsidized phones. Now, all of the four major U.S. carriers offer EIP plans for their customers as an option when it comes to buying a new handset.
Verizon also made many of its customers put on their #feeface by raising the upgrade and activation fee by 50%. The fee is now $30, up from the previous $20. That change also took effect on January 5th. Back in April of last year, Verizon instituted a $20 activation fee on those purchasing a new phone paying full price, or using an EIP.
Posts: 3785; Member since: Sep 30, 2009
The providers in Canada do this already. As soon as the 3 year contract was abolished I knew they'd come up with something else to screw the customers with. At least you guys in the states have more competition.
posted on Jan 07, 2017, 7:54 PM 2
Posts: 4063; Member since: Jul 23, 2013
Everyone is better off than Canada. This is a straight up monopoly and collusion. They literally have the same s**tty overpriced family plans on the big 3.
posted on Jan 07, 2017, 8:33 PM 4
Posts: 3960; Member since: Oct 21, 2014
Shaw is pretty different with internet (at least here in Alberta). Was getting ripped off by stupid Telus despite being with them for many years. They were too greedy to give me a permanent discount, instead they were offering nonsense 3 or 6 month discounts, then they go back to the stupid price of $80+ for Internet 15 (15 Mbps). Fastest they have in my area is internet 50, and that's obviously gonna be even more overpriced. That's just Internet. Still needed to pay an additional $35 for landline/fax, and another $25 for TV (which I eventually cancelled). During the Christmas holiday, got a 2 year contract with Shaw for Internet 150 (150Mbps) for $50 during the first year, and $70 during the second year. On top of that, landline was just $20 additional, yet it comes with a whole lot more functions, one allows getting my voicemail on my Surface Pro. So, I'm paying way less as a new customer than what I was paying one of the stupid 3 as a long term customer, and yet, I'm getting over 10x better home service. Plus I gain access to Shaw Go WiFi in thousands of public places around Canada at no extra cost.
posted on Jan 08, 2017, 1:36 PM 0
Posts: 1124; Member since: Feb 23, 2009
Everyone has a very short memory. the reason T-Mobile started device payments and no contract was not to benefit the consumer its was because they were loosing money on device subsidies.All of the other carriers followed suit when they figured out they make more money with device payments than a contract. And compared to an early termination fee needing to pay the balance of your device payments when you leave can be just as much as an incentive to stay.
posted on Jan 08, 2017, 10:25 AM 1
Posts: 1835; Member since: Nov 22, 2011
Yes, but Tmo has always been cheaper, where VZW raised their prices and eliminated device subsides. I say this, unfortunately, as a VZW customer. Also, part of the old model was "upgrade" fees, now what exactly are you "upgrading"? This is just tacking on 30 more dollars to already overpriced 6-700 dollar phones. Which they are making 300 or so dollars on anyway.
posted on Jan 08, 2017, 2:14 PM 0
Posts: 43; Member since: May 05, 2014
If you rely on Verizon coverage, then go to Verizon Prepaid or a Verizon MVNO (ie Straight Talk, Selectel, etc.). Also, get your refill pins from a refill pin website (C A L L I N G M A R T) and you don't have to pay taxes and you get a discount if you go the Verizon prepaid route. Look into it, I've been on Verizon prepaid for years and have had no problems. I pay under $100 for two smartphones that I purchased on eBay, iPhone 6 for $350 a year ago and a Samsung S7 for $300 a month ago.
posted on Jan 07, 2017, 10:03 PM 2
Posts: 1835; Member since: Nov 22, 2011
I'll be honest, I don't know what they have done in the last 12 months, but something has happened where I don't even have service in some of the area's where I had 3-5 bars are now struggling to get service. Same phone, same houses, but worse service.
posted on Jan 08, 2017, 10:04 AM 0
Posts: 372; Member since: Jun 14, 2010
Haven't bought a single phone from Verizon in nearly a decade. Also, haven't visited a store in about 3 years. I buy my devices third party and swap my own sims. I'll pay them for their network service, which I think is great. Other then that, they don't get anymore money from me.
posted on Jan 08, 2017, 1:58 AM 2
Posts: 1485; Member since: Mar 18, 2012
Why would any carrier charge their customers an "upgrade" fee. This is why I left. That charge right there. You're telling me that you're going to CHARGE a loyal customer to remain loyal on your already heavily marked up product? No. Not me.
posted on Jan 08, 2017, 7:01 PM 0
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