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

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

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