What does Verizon's elimination of "New Every Two" and "Annual Upgrade" mean for you?

What does Verizon's elimination of
Earlier this month we got wind that Verizon was eliminating their popular New Every Two (NE2) program and Annual Upgrade program on January 16th. Then yesterday this was confirmed as was reported by the Wall Street Journal. So what does this mean for you...if you are a current Verizon customer, or are looking to become one? We have four scenarios below to help explain this:

1) If a current Verizon customer who has a NE2 credit purchases a new phone
before Jan 16 and resigns a 2-year contract, they will get that phone at the 2-year
promotional price and their NE2 credit will be applied on the purchase. They will also be ‘grandfathered’
into the NE2 program one more time and can use that credit in two years (Jan 2013)
when buying a new phone when signing another 2-year contract.
After that, they will no longer receive a NE2 credit, but will continue to receive
2-year promotional discounts on phones after they are 20-months into their 2-year contract.
2) If a current Verizon customer who has a NE2 credit waits and purchases a new phone
on or after Jan 16 (including the iPhone 4, Droid Bionic, etc) and resigns a 2-year contract,
they will get that phone at the 2-year promotional price and their NE2 credit will be applied on the purchase.
Then in 20-months they can then buy a new phone again at the 2-year promotional pricing,
but there is no longer a NE2 discount.
3) If a new Verizon customer signs a 2-year contract before Jan 16, they will get
that phone at the 2-year promotional pricing and will be enrolled in the NE2 program.
Then in two years if they resign a 2-year contract, they can purchase a new phone
at 2-year promotional pricing and will receive their NE2 credit on that purchase.
After that, no further NE2 credits will be given, but the customer will continue to receive
2-year promotional discounts on phones after they are 20-months into their 2-year contract.
4) If a new Verizon customer signs a 2-year contract on or after Jan 16, they will get
that phone (such as the iPhone 4, Droid Bionic, etc) at the 2-year promotional pricing, but
will not be enrolled in the NE2 program. Then after 20-months they can then resign another
2-year contract and purchase new phone at the 2-year promotional pricing.

Hopefully this helps to clarify things, as some people were under the impression that Verizon was also getting rid of their 2-year and 1-year promotional prices. This is not the case. Verizon will continue to offer 2-year promotion phone pricing after you are 20-months into the 2-year contract, and 1-year promotional pricing after you are 10-months into the 1-year contract. However, the "Annual Upgrade" program will end on Jan 16, that allowed you to get a 2-year phone discount price when you are only 13-months into a 2-year contract. Now you'll have to wait until the 20th month.

Let us know what you think about this in the Comment section below.



1. jim1969 unregistered

Will the iPhone 4 be available on a 1 year contract? I don't see that anywhere.

2. narley

Posts: 357; Member since: May 14, 2009

not that we're aware of yet. we dont even know the full retail cost at this point.

3. shellnick2003

Posts: 17; Member since: Jun 23, 2010

It prolly will. It would be more money, of course.

75. justsayin.. unregistered

No. It will only be available on a 2 year contract or for purchse at full retail.

4. tuminatr

Posts: 1145; Member since: Feb 23, 2009

How does this compare to the other cell companies? I have Verizon so are they just making there policy like everyone else or?

6. VZW Guy unregistered

Verizon was the only company to offer NE2 to current customers. It was to add a competitive advantage. VZW didn't have the phone line up that other carriers had, so they developed Annual Upgrades and NE2. Now that Verizon is a leader in service and devices (LTE, Iphone, tablets, droids) they have to redevelop their offerings. Customers will start to receive special promotions via mail and email when they are able to upgrade. So if a rep ask for your email, its not so that the company can spam you.

13. JeffdaBeat unregistered

That didn't answer the question at all. I think Tuminatr wanted an explaination of what New Every Two was and how it is different from a standard upgrade, which also happens every two years.

17. dpullen81

Posts: 13; Member since: Dec 31, 2010

new every two program offered existing customers on single line plans or primary lines of a share plan an additional discount off of the 2 yr promo price exp.- 100, 50 or 30 dollars (depending on price plan) annual upgrade would offer exactly what it says... on a 2 yr contract you can upgrade at 12 months. this program was what set verizon apart from other companies so to answer the question.. verizon will now have the same pricing/ upgrade program as other carriers.

19. thomas1215

Posts: 8; Member since: Mar 30, 2010

Ok yeah he miss spelled a few things but the point is, as a customer you have options. if you dont want to sign a contract with verizon go else where. no one is making you sign with them. whats so hard about that concept

5. remixfa

Posts: 14605; Member since: Dec 19, 2008

it makes it the same as other companies. The difference is, your paying 1k-2k more for your VZW service over 2 years than say sprint or tmobile, and now u dont even get the phone benifit. Thats going to make a lot of people mad.

7. VZW Guy unregistered

Consumers...seriously. No one puts a gun to peoples heads and tells them to re-sign their contract. Obviously, people choose Verizon for a reason. We welcome our competition in the market, otherwise there would be a monopoly. We aim to satisfy every customer, but it won't happen every time. You can expect a supreme network at Sprint's prices. If a company competes on price its because they don't plan on investing much money into their product. Same with Sprint and T-mobile. It is economically impossible.

12. JeffdaBeat unregistered

Dude...seriously...stop drinking the corporate koolaid or at least cut back. Also I'd read over a post before you submit it. You just said I can expecte supreme network at Sprint's prices...which would justify what the poster above you said.

20. thomas1215

Posts: 8; Member since: Mar 30, 2010

Ok yeah he miss spelled a few things but the point is, as a customer you have options. if you dont want to sign a contract with verizon go else where. no one is making you sign with them. whats so hard about that concept

26. JeffdaBeat unregistered

...it's "misspelled" Remixfa was only giving his opinion which he is completely entitled to. He is only saying that Verizon charges more money for service when service from Sprint is just as good. Whether it is actually just as good is anyone's opinion as well. Yes, consumers have a choice, but I don't think his arguement was the lack of choice, but more so that when you get Verizon, you're paying for name not function. Kind of like buying name brand jeans. They do the same thing and sometimes, look just as nice as other jeans, but you pay for the name...at least that's what I'm getting. But again, he wasn't arguing the lack of choice because obviously, there is a choice. Now I won't say that I agree with him. There is a huge difference between service on Verizon compared to T-Mobile. But if you live in the city, most of the carriers will work just fine. But if you want to pay extra to call out in the country...that's also just fine.

60. taylor unregistered

When it comes to the "4g" networks that every one has. the reason for the " is that no one does. 100 meg connection minimum. So sprint Wimax tech sucks. T-mobiles HSPA+ just a 3g network on its limits. Why do you think at&t is using HSPA+ but will be switching to LTE just like Verizon already has? You pay for what you get. Also spectums are important, Wimax running at of 2.5 gigs and LTE at 700 meg. Service in side buildings will be way better

21. wilocrek unregistered

Your so called "supreme network" was rated by Consumer Reports a 74 with Sprint a 73. So if you actually think that Verizons network is worth spending 40% more on than you really are a idiot.

36. doubleD

Posts: 78; Member since: Dec 13, 2010

Depending on where you live, YES. Consumer Reports rates major cities, not rural areas. Where I live Verizon is the only company that has a consistent and reliable signal. So I can save money and not be able to use my phone, or pay a premium for a service that actually works. Don't assume everyone's coverage is the same as yours. I don't think Sprint/ATT/TMobile/etc. have bad service for everyone just because their service is bad in my area. Buy what works best for YOU.

61. tragichero

Posts: 163; Member since: Jan 07, 2011

that consumer report is outdated not including verizons LTE. plus sprint doesnt have an iphone or the android line up verizon does. sure they got the evo and the evo shift but that doesnt even contest verizons line up. basically what im saying is that you pay for the network AND everything else that comes with it (phones, customer service, etc). i have to say that opposed to other cell phone carriers ive worked for (including sprint) verizon also has the best customer service.

64. Aztrokat unregistered

So, rating Verizon's LTE network is important to do before they put out any phones for LTE?

67. AD430886 unregistered

First of all, why does anyone still want an iphone? I had one in like 07 hahahaha they have mildly improved the phone since then. Android is far better providing your inteligent enough to mantain it. You need to get your facts straight because both the evo and epic are rated over anything Verizon has.

8. Droid_X_Doug

Posts: 5993; Member since: Dec 22, 2010

One year contract. I signed up my Droid X for only $70 more than the cost for a 2 year contract.

9. compassstl unregistered

So basically Verizon is making people wait 2 months longer than AT&T or T-Mobile to do upgrades, with the exception that AT&T sometimes has iPhone users on a family plan that aren't the primary number wait up to 20 months instead of 18. Plus AT&T lets you do early upgrades as early as 6 months into contract if you don't have an iphone. Sounds like Verizon is making everyone bend over and meet the same rules as apple imposes for the iphone on AT&T.

10. jst4thoughts unregistered

so what happens to the idiots that dont sign up for insurance and they mess up their phone and is not covered under warranty? are they just screwed and have to buy a new phone at full retail? i feel this is a bad move for vzw. this is what kept me from going to a different company. i am the type of person that likes to get new phones every year. i guess craigslist and ebay are going to get popular again.

22. dpullen81

Posts: 13; Member since: Dec 31, 2010

same thing that happens to you when you wreck your car and didnt get insurance... pay more for the phone and sign a 1yr contract and you should be good to go

27. stilt

Posts: 63; Member since: Jul 13, 2008

people dont know this but is you have verizon service and you dont have insurance and you loss, water damage, got stole, or break your phone which doesnt fall under warranty they will offer you a certified pre own phone they have a good selection of smartphone and regular phone for waaaayyy cheaper than full retail price and they come with one warranty "not insurance" warranty. and why would you get a smartphone without a insurance plan, cause yeah its whatever amount a year, but how many time do you spend 5 to 7 dollars on BS every month anyway??? people never think about that "oh let me buy this ""organic"" tomatoe from the farmers market over the regular just as healthy if not more healthier tomatoe" , but then when asked if they want insurance on there device they say " THATS $72 a yr, no way but then there dog chews there phone after they just spent $800 cause all four tires went flat at the same time and you're not eligible for upgrade and you dont want to pay $599.99 for a new device at retail, to me paying $39 for regular phone or $89 for smartphone is the smartest chose. but you cant tell CUSTOMERs nothing. and no one cares that you have been with the company over 8 yrs and you are always on time, (you dont see your bank saying " oh you have paid your mortgage on time for 16 yrs you dont have to pay the next three payment cause you are such a good customer" wake up people! im a little mad that the NE2 is leaving cause as a salemen that was a good tool to get people to make the decision to get a higher priced smartphone. People sign contracts cause they want the devices to be cheaper point blank people always say well i'll just leave the other company has this or that, well leave then you will be coming right back after you see that the signal coverage and customer service isnt as good as VZW and high tail it right back, i did the same thing with verizon i left to go to HELIO to get that nice ocean phone they had and everything was 79.99 for unlimited everything i was hell yeah bye bye VZW. I had HELIO for 6 days and came right back to VZW i dropped calls everywhere and couldnt get a signal to use my unlimited data plan or unlimited minutes with no signal in the places i was the most or the place that im not usually at but need to use my phone when im there. yeah im not in my shed replacing cabinet all the time but when im on the laddar holding up something and i need to use my free hand to call in the house to tell my wife to send out my son to help me hammer a nail but i dont have a signal so i have to get off the laddar walk to the house then go back out and lift the stuff again. It make you say to yourself why do i pay any amount for any company if i cant use it absolutely everytime i want to use it in whatever place, enviroment ,situation or whatever the case may be. and people stop crying about "oh it a reburbished phone that they sent as far as you know the original could have been a replacment. stop crying

31. JeffdaBeat unregistered

Paragraphs are awesome...

62. tragichero

Posts: 163; Member since: Jan 07, 2011

im sorry... im just not going to read all this... so ill some it up with what i think your trying to say. VERIZON IS STILL THE BEST CARRIER! good enough?

11. WHAT???? unregistered

"A simpler program is being introduced to replace the 10-year-old New Every Two® and Annual Upgrade programs." A simpler program? It's the same exact program as before except VZW is just taking away the NE2 and the annual upgrade (upgrade after 12 months if on 2 year contract with new 2 year price). Those were the best 2 parts. You have always been able to upgrade after 10 months on a 1 year and 20 months on a 2 year - always! I know this is how every carrier does it. But calling it simpler? Come on.

14. perwilly unregistered

Thanks, that helps to confirm what I was thinking. I fall into the #2 scenario, and the credit of $50 isnt a big deal to me. Oh sure, it helps but it's not a deal killer for me. I hold on to my phone for the full 2 years anyway, so whie the change is disappointing, I prefer VZW's service and will stay.

15. newfdog 13

Posts: 64; Member since: Mar 06, 2010

It means that now Verizon thinks it has such big balls so as not to care about customer loyalty. I've had my service with them for 14 years now, and have watched as they deteriorated in their treatment of "loyal" customers. They had VIP programs that were ditched without telling the VIPs. They had a credit for $100 for the New Every Two that fell to $50 without telling. They used to have a New Every Two on secondary lines that also disappeared without telling customers. Now the only difference is they realized they needed to tell us as they jack us. Thanks a lot Verizon.

Latest Stories

This copy is for your personal, non-commercial use only. You can order presentation-ready copies for distribution to your colleagues, clients or customers at https://www.parsintl.com/phonearena or use the Reprints & Permissions tool that appears at the bottom of each web page. Visit https://www.parsintl.com/ for samples and additional information.