Rumor: Verizon to close loophole allowing unlimited data for those buying a subsidized phone

posted by Alan F. / Aug 10, 2014, 7:47 PM

Rumor: Verizon to close loophole allowing unlimited data for those buying a subsidized phone

Verizon customers who had grandfathered their way into an unlimited data plan, have been unable to upgrade their subsidized phone without losing their unlimited data. By not allowing grandfathered Verizon customers to upgrade using another subsidized phone, Verizon was slowly dropping the number of its members with an unlimited plan. But one trick employed by Verizon customers, had account holders upgrading a $9.99 a month featurephone account to buy a subsidized smartphone, and then switching the smartphone to the line with unlimited data.

The featurephone line used to purchase the subsidized smartphone, is charged a $30 monthly fee for 2GB of data. But when the lines are switched, and the smartphone is activated on the unlimited line, the $30 fee is canceled by the customer. That takes the price back to $9.99 a month for that line. But there is some speculation circulating that Verizon is eliminating this loophole, starting August 24th.

The new rules will require a Verizon customer who activates or upgrades a new smartphone, to have a data plan that covers the length of the contract. This forces the customer to keep the $30 monthly 2GB data plan instead of canceling it, when swapping the purchased smartphone to the account with unlimited data. To prevent being stuck with the monthly $30 fee, customers can switch to a More Everything plan, or buy a phone at the full retail price, or use the monthly installment plan available with Verizon Edge.

"(When Verizon) gives customers a discount on the retail price of a smartphone, we expect them to pay for data services and keep the smartphone activated for 2 years. This change closes the loopholes which allowed customers to activate/upgrade a smartphone and immediately revert back to a basic phone, resulting in a discontinued smartphone with no associated data plan."-Verizon

Verizon has yet to make this official, but with an August 24th start date expected, some word should be coming out soon.

source: Droid-Life

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28 Comments

1. wilsong17 unregistered

thank you tmobile

posted on Aug 10, 2014, 7:54 PM 6

17. appleDOESNT.com

Posts: 456; Member since: Nov 19, 2011

I love VZW unlimited (I have it, I earned it after all these years) but without it and no clear reason why me and my fam don't deserve to keep it (after signing multiple contract extensions and no clear way out with 5 lines) , VZW is dead to me after these repeated attempts to curb a lousy 4,7 gb a month. FU vz that isn't much more than streaming music you greedy efffss. (PERIOD)!!! Sure heqvies over 10 plus mabe but 4.7 FU VZ!!!

posted on Aug 10, 2014, 11:34 PM 1

25. bigdawg23

Posts: 467; Member since: May 25, 2011

I download apps videos, music and stream music all the time. I never eclipse my 10GBS on a AT&T. I also travel a lot for work. If someone is consuming mack 20+ GB than it has to be tethering a laptop or using it as home Internet. Which is a clear violation of TOS. At the end of the day if you stay in a major city then sprint and tmobile might work for you. Since I need reliable coverage ATT for personal and Verizon is the only way to go. I dumped my ATT unlimited in February as 10 GB worked for me. I never got throttled despite using over 5GB most months.

posted on Aug 11, 2014, 3:28 PM 0

2. joey18

Posts: 666; Member since: Jul 20, 2010

verizon sucks 6 years paying big bills left for t mobile now more happy then never

posted on Aug 10, 2014, 7:57 PM 11

3. Tux4g63

Posts: 121; Member since: Oct 21, 2011

With a decently robust used phone market for second hand smartphones, it just makes sense to buy your own device and put it on your plan. If you do not need a brand new just released smartphone, I have seen last years phones such as the Droid DNA go for anywhere from 100-150 on craigslist. Potentially phonearena may think of putting together a down and dirty guide for how to walk through purchasing a used phone second hand for novices. It has the potential to help customers keep unlimited data while helping out to educate and inform on what things to look for, questions to ask, and ways to prevent against fraud?

posted on Aug 10, 2014, 7:58 PM 0

27. TheMan

Posts: 494; Member since: Sep 21, 2012

The poster is partly right. The loophole does apply in the situation described, but it doesn't have to be a feature phone for the loophole to work. As long as the line doesn't have unlimited data, whether smart or basic, the workaround works. I've added lines for VZW customers who wanted to get a discounted phone, but keep an unlimited data feature. The VZW fix would be effective vs those who would reactivate a basic phone.

posted on Aug 12, 2014, 2:18 PM 0

4. MikeG77

Posts: 426; Member since: Nov 24, 2008

As a Verizon customer I'm not surprised by them pulling this load of BS. Notice how they only care about the subsidy but they don't give a crap about the people who buy a phone at retail. We get no subsidy, we pay for unlimited data and yet were still paying a monthly bill with a built in subsidy. Like I said Verizon doesn't give a crap about customers.

posted on Aug 10, 2014, 8:03 PM 4

6. 0xFFFF

Posts: 3806; Member since: Apr 16, 2014

Verizon cares about you, as much an any farmer cares about a farm animal. You are a nice bundle of meat cuts to be sold at market: personal data on your phone, location data of where you go, app usage data for what you do on your phone, and of course, telephone data for who you call and who calls you. But Verizon's main trick is that they charge you every month to be a farm animal, even when they slice off some nice cuts of meat every month and sell it.

posted on Aug 10, 2014, 8:14 PM 3

10. Augustine

Posts: 1043; Member since: Sep 28, 2013

At least farm animals would escape if the gate is left open, unlike VZW customers, who willfully choose to remain beholden to the bull using them as cash cows.

posted on Aug 10, 2014, 8:58 PM 6

9. Augustine

Posts: 1043; Member since: Sep 28, 2013

That you care about VZW more than it about you is the real surprise here.

posted on Aug 10, 2014, 8:55 PM 1

5. bubbadoes

Posts: 1225; Member since: May 03, 2012

Nearly all of the company's 102.8 million customers are postpaid, with just 5 million subscribers opting for prepaid services. ... Verizon Wireless adds 1.7M subscribers in Q4, 70% now have smartphones. It seems like all the readers in PA dislike Verizon for their high prices, etc..but the rest of the US is going to them in droves. No other carrier has those numbers!!!

posted on Aug 10, 2014, 8:05 PM 0

7. ajac09

Posts: 1482; Member since: Sep 30, 2009

yeah the .1% being loud really do not represent the majority.

posted on Aug 10, 2014, 8:17 PM 2

8. 0xFFFF

Posts: 3806; Member since: Apr 16, 2014

With a telecom duopoly, you will expect to see numbers like that, i.e. steady growth for ATT and VZW. T-Mobile's growth is mostly prepaid, so they are scooping up the bottom of the market. When you factor in various discounts, T-Mobile post-paid is really not that great a value. Of course, for (currently) unthrottled unlimited data, T-Mobile is the only game in town now.

posted on Aug 10, 2014, 8:17 PM 2

12. Awalker

Posts: 1973; Member since: Aug 15, 2013

Also, Verizon's prepaid service is crap and more of a rip off than their post paid service.

posted on Aug 10, 2014, 9:30 PM 2

11. Awalker

Posts: 1973; Member since: Aug 15, 2013

You sound like Verizon company spokesman. Why do you care what people say about Verizon?

posted on Aug 10, 2014, 9:26 PM 1

13. SamDroid unregistered

I know on contract you get smartphones cheap and all that but seriously how do you survive with a contract. All my phones I buy unlocked and I'm pretty much happy on Prepay, using just enough to get me by.... How do you people live like that?

posted on Aug 10, 2014, 9:48 PM 2

14. 0xFFFF

Posts: 3806; Member since: Apr 16, 2014

It all depends on what plan you have. There are many grandfathered plans with various corporate/organizational discounts that offer reasonable value (i.e. they are screwing you, but not too terribly). If I didn't have one of these old plans, I would go the unlocked phone and prepay route. It is cheaper than any of the single line plans now available (which are mostly priced quite rapaciously).

posted on Aug 10, 2014, 9:52 PM 0

15. kaintae

Posts: 98; Member since: Dec 14, 2011

i wonder if i can still do an esn switch from my homephone connect on share everything to a smartphone, do the upgrade, and then switch the esn back...not like i need the latest and greatest homephone connect

posted on Aug 10, 2014, 11:21 PM 0

16. kaintae

Posts: 98; Member since: Dec 14, 2011

"To prevent being stuck with the monthly $30 fee, customers can switch to a More Everything plan, or buy a phone at the full retail price, or use the monthly installment plan available with Verizon Edge." I could be wrong, but I thought the edge program automatically took you off of the unlimited data plan. i'm not sure if they still have it, and i'm too lazy to look it up...but they also had an installment plan that wasn't associated with edge.

posted on Aug 10, 2014, 11:27 PM 2

18. Salazzi

Posts: 537; Member since: Feb 17, 2014

You are correct. The Edge installment plan is incompatible with unlimited data customers. Verizon had a separate "deal" where you can take 12 months to pay off a phone full price, if you're unlimited, but guess what... they recently took that away. As if it wasn't enough we had to pay full price, and still pay for cell service as if we are getting subsidized phones, we are now being pushed even further. Verizon can screw itself. Around 22% of ALL of it's customers are on unlimited data plans. If they keep pushing them, where the hell do they think they'll go? T-Mo of course.

posted on Aug 10, 2014, 11:40 PM 3

19. kaintae

Posts: 98; Member since: Dec 14, 2011

it's tough. i was with t-mobile for years, and no one can convince me to go back. I even tested it out a few months ago to see if the improvements were sufficient for what i need. I live in the 4th largest city in america, and there are major spots where I'm guaranteed to lose service. call quality is subpar as well here, and that's a no no for me. I don't mind paying Verizon's prices...but i've been spoiled by unlimited data. the least i've used in the last 3 years is probably around 12 gb.

posted on Aug 10, 2014, 11:55 PM 1

20. Salazzi

Posts: 537; Member since: Feb 17, 2014

I'd give them another test run, if I were you. Understandably the previous experiences were bad, but I speak from experience when I say in the last 4 months, T-Mo has kicked their coverage up quite a notch. You never know.. all or at least the overwhelming majority of areas you're in may be covered, and boy would it be great news at the right time for you. Either way, one needs to merely look at the directions of the companies. Verizon- nickel and diming customers, restricting options and forcing plans on customers, eliminating unlimited data, increasing whining about congestion and doing nothing to address the issue so that they would do what they are supposed to do and to provide the service they're supposed to provide. T-Mobile- providing more and more value for the dollar to it's customers, creating even more options, allowing customers to seamlessly change their plans, unlimited is a welcome word here. Increasing coverage as well as speeds. It isn't just growing in length, but also in girth, so to speak ;) . While covering more areas with their LTE, they also fatten their network to provide some of the highest speeds in the industry. T-Mo promises to cover more customers by year end and by the end of 2015 to cover pretty much what can be considered all/most of the US population. Essentially, sure your past experiences may have been bad, BUT they're continuously improving. The same can't be said about Verizon. I think many may have to swallow the pill and bear with some dead spots for a few month. Or they'll have to just bend over just a bit more for Verizon and cough up even more cash-money.

posted on Aug 11, 2014, 12:13 AM 3

22. kaintae

Posts: 98; Member since: Dec 14, 2011

fortunately, the money part has never been an issue, although I'm definitely not super wealthy. The things i value are: consistent, quality coverage, unlimited data, and call quality. Fortunately, I'm still under contract with my unlimited data for another year. So I have time to think about my next move, as well as hope that some of their competitors with unlimited data make enough improvements for me to leave.

posted on Aug 11, 2014, 12:21 AM 2

23. Salazzi

Posts: 537; Member since: Feb 17, 2014

Didn't mean to make it seem as though I was implying money was an issue. Realistically though, who wouldn't want to save money? Saving $50/month comes out to $600/year. For my family switching to T-Mo from Verizon saves $2,500/year. And that's before the nonsense Verizon is about to pull. $2,500 is a big damn deal no matter how wealthy one is. That money can be used elsewhere or reinvested. I do feel most have the same priorities as you.. consistent and quality coverage, and value for your dollar. We are all more similar than we are different.

posted on Aug 11, 2014, 1:35 AM 1

21. kaintae

Posts: 98; Member since: Dec 14, 2011

oops, double post...:O

posted on Aug 11, 2014, 12:19 AM 0

24. Sprissy

Posts: 193; Member since: Feb 11, 2012

I don't use a lot of data since I have wifi access most of the time but I was really pissed when I had to give up my unlimited data a couple of years ago. When they added LTE I put my LG G2 on prepaid, dropped my bill to $45 and with auto pay I still have 1gig of data and everywhere I travel I still have service, I don't mind adding extra data if I see I am going to need it, but when I do add it I like knowing it will roll over for 90 days. It's not the best deal out there but like I said it works everywhere I go.

posted on Aug 11, 2014, 2:58 AM 0

26. qball

Posts: 3; Member since: Aug 11, 2014

Doesn't affect me at all. I am on a family plan and my wife does not care about having the latest and greatest so when the iphone 6 comes out I will just use her upgrade and give her my still like-new 5s and she will give my son her still like new 5. We all have data plans (mine is the only unlimited) so I won't be adding anything that's not already there. Then next year I will use my son's upgrade, give my wife the 6 and him the 5s. Verizon will have to pry my unlimited data from my cold dead hands!!!! Haha, in reality though i fully expect big red to just do away with it altogether once the percentage of customers they will be pissing off or losing will be minimal enough for them not to care.

posted on Aug 11, 2014, 10:54 PM 0

28. captcha_b

Posts: 1; Member since: Aug 21, 2014

They are definitely doing this and it definitely starts the 24th. I already did all my basic upgrades before this hits. When I do get hit with the $30 fee for my basic lines it will be a small price to pay to keep my unlimited and still get my 40 gb a months on the old $69.99 unlimited talk and text with $30 unlimited data. My other 6 unlimited lines are more than happy to pay full retail for their phones since they use 2x as much data as I do. With VZW port out churn rate the way that it is these days they are just making it worse for themselves. I love Verizon service, I hate Verizon business strat, but its a company that is in it for the money so I hope the FCC keeps calling them out.

posted on Aug 21, 2014, 10:55 AM 1

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