Verizon Wireless to Eliminate One-Year Contracts
Apr 8, 2011, 9:32 AM by Eric M. Zeman
Verizon Wireless has confirmed that it plans to cease offering one-year contracts to new customers. One-year contracts will no longer be available starting on Sunday, April 17. A Verizon Wireless spokesperson explained via email, "Keep in mind, a majority of our customers select a two-year contract when buying our devices, so we are responding to what our customers want. They still have options available, such as two-year contracts, month-to-month and prepaid plans." Verizon also noted that customers can take advantage of its trade-in program to help defray the cost of device or service upgrades.
source: Verizon Wireless
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Comments
1 Year option - What ifs?
I understand the logic of eliminating the 1 year option as it stands now. The price difference between a year one agreement and a two year agreement is not enough to cover the lost revenue of an additional year of service. With subsidies going through the roof on almost every smart phone is does make sense. It doesn't make people happy when choice is eliminated but the choice now is not a good deal for the company.
The what if lies in the difference of the price. Would you as consumers choose a 1 year agreement if the discount was more reflective of the revenue difference on the subsidized handset? The pricing model now is flawed. Paying $30 or $50 more to eliminate an entire year of revenue is not an equitable pricing model when th...
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The what if lies in the difference of the price. Would you as consumers choose a 1 year agreement if the discount was more reflective of the revenue difference on the subsidized handset? The pricing model now is flawed. Paying $30 or $50 more to eliminate an entire year of revenue is not an equitable pricing model when th...
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This is not the reason Verizon has chosen to do this. Verizon sees the comming storm with the merger of AT&T/T-Mobile. People are going to be leaving both of those carriers for one reason or another. Verizon wants to make sure that any newcommers are ...
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It depends upon what my resources were. When I got the incredible I could not afford to pay one year or full retail price. I only upgraded because my windows seven netbook did not support the XV6900 for VZAM. Unless something unforeseen occurs I pl...
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In my opinion, the entire system is flawed.
The manufacturer makes a killing on a phone - much more than they make on most another other electronic product. And they pass that killing on to the distributor, who adds a little bit for their own tr...
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The manufacturer makes a killing on a phone - much more than they make on most another other electronic product. And they pass that killing on to the distributor, who adds a little bit for their own tr...
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Did anybody notice
the reduction in full retail pricing from Verizon?
I checked their website today and the full retail for the tbolt, iphone, droid2 and droidx all seemed to be about 100 cheaper than normal (and what i paid for them, coincidentally)
$450 for a brand new droid 2 no contract isn't a bad deal at all, really...
I checked their website today and the full retail for the tbolt, iphone, droid2 and droidx all seemed to be about 100 cheaper than normal (and what i paid for them, coincidentally)
$450 for a brand new droid 2 no contract isn't a bad deal at all, really...
Not getting as much run as you would think considering all this hoopla about eliminating 1 year agreements. Being able to get a Droid X for $399 no contract is a smoking deal. The price for the Thunderbolt is damn near our handset cost. Most of the...
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Greedy bastards
All these phone companies are blood sucking ticks, jacking up prices, ETFs, forcing people onto two-year contracts with no allowances for an early upgrade.
The only reason I even came over to them was to get a Droid phone. If they don't improve things though, I'll simply go back to prepaid, since they now have Androids as well.
The only reason I even came over to them was to get a Droid phone. If they don't improve things though, I'll simply go back to prepaid, since they now have Androids as well.
Yet another reason to select Metro PCS.
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You still have the option of month to month. Your just have to buy the phone out right. Somehow I just don't see a problem here
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Same here! The only reason I came over to Verizon was Android. Their network is way, way overrated!!! In the real world dropped calls do indeed happen on Verizon, and data does drop to 1x. So their "Network" advertisements are nothing but brainwashing...
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To those of you still living in your parents basement with no job, I can see how this might be a problem. But for those others out there this isn't a big deal. Enjoy your horrible service with straight talk, or net10.
Funny how these big players are so brash that they would do this even as the government is talking about lack of competition with the ATT T-mobile deal. Guess what we can look forward to in the near future? News articles like Verizon/ATT raising the...
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Not sure if this has already been asked and answered or not.
Please cite an example where Verizon has recently (I'll even give you 2 years) "jacked up" their prices.
Please cite an example where Verizon has recently (I'll even give you 2 years) "jacked up" their prices.
Not Happy
I have only ever gotten one-year contracts. I've never had a phone last two years, and these days even if it did, with the way technology is moving, any phone I get will be obsolete in a few months and I'll want a new one in a year anyway. Just because the majority of people sign up for two-year contracts doesn't mean they should eliminate one-year contracts for those of us who do use them. I figured they were making money off of me...I pay more for the phone, and I buy a new one every year.
I wrote an email to Verizon about this and they actually just called me to respond to it. Basically they said sorry, but we'll submit your feedback and it will get reviewed because all feedback is looked at. Oh, and she also mentioned that early upgr...
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I wrote an email to Verizon about this and they actually just called me to respond to it. Basically they said sorry, but we'll submit your feedback and it will get reviewed because all feedback is looked at. Oh, and she also mentioned that early upgr...
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Unfortunately, they DON'T make more money on 1 year contracts. What most consumers don't understand is that Verizon pays for most of your phone when you sign up. On a 2 year contract they have more time to make up that loss. But, while you pay about $...
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There are a post or ten where I pointed out that anyone on a secondary line would be a fool to sign a two year contract without at least adding TEC or extended warranty. I guess everyone had best prepare to up their ARPU a couple of dollars, huh?
They are eliminating them for NEW customers
According to this press release. I don't see anything about eliminating 1 year upgrades. Do we have a confirmation this is correct? I really don't feel like wading through the troll conjuring their false rage to find the answer.
The big V has removed the 1 year upg for most customers. 99% of these things that vzw has done this year has been in some small part bc of the iphone. Look at the trend from early jan till now. Notice the Iphone launch feb 10th. They all want as much ...
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So true.
"Keep in mind, a majority of our customers select a two-year contract when buying our devices, so we are responding to what our customers want."
As if they haven't made it very distasteful for people to sign them.
When I worked at V...
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"Keep in mind, a majority of our customers select a two-year contract when buying our devices, so we are responding to what our customers want."
As if they haven't made it very distasteful for people to sign them.
When I worked at V...
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Talk about spin! "We are just giving customers what they want." Talk about BS. What they are really saying is "giving customers options is no longer an option."
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My only real problem with this development is...
Verizon (all Carriers) should give its customers a sizable discount off of the plan if a phone is purchased at full retail. If the reason for the 2 year contract is to guarantee that they re-coop the subsidy on the phone then no subsidy should mean a lower cost plan.
Other than that, this whole issue is being overblown. Out of 1000 phones that I have sell, MAYBE ONE is a one year contract.
Other than that, this whole issue is being overblown. Out of 1000 phones that I have sell, MAYBE ONE is a one year contract.
You're assuming that there is a 'mark up' on the cost of the rate plans to make up for the cost of the phone. There isn't.
The rate plans cost what they cost, there is no 'mark up' on the rate plan because you got a discount on the phone. Even ...
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The rate plans cost what they cost, there is no 'mark up' on the rate plan because you got a discount on the phone. Even ...
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It was good while it lasted...I'm done.
I've been opting for the 1 year contract over the last few years. Being able to switch devices after just 10 months was a big selling point for me. I don't know about you guys/gals, but this is too much. I can't believe this is a rational option for them. I spend the extra cash for the 1 year contract because of its convenience. With this option no longer available, I can't find a reason to stay. The network? Nah, AT&T, T-Mobile, or Sprint will do just fine. Not only do I have to put up with Verizon being last to the table with worthwhile devices, I now have to get stuck with one for 20 months. This is not acceptable. Right now, I'm on month-to-month as my 1 year contract with the Incredible ended on Feb. 28th, 2011. I've been buying my time...
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No. You won't be, the question is: Will enough subscribers vote with their feet to make a dent in them? Judging by the outrage of the mandatory $9.99 data plan and their churn numbers still being low...probably not. Still, we should probably write ...
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If you go to Sprint and pay the same amount you were paying with Verizon (I am assuming $90+/month) they will let you upgrade every year as official policy. I am would pretty sure ATT and T-Mobile will let you do the same thing under those conditions ...
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If you have US Cellular in your area, that could be a great option for you. They do go with 2 year contracts, however with the new plans they have, they give you the option to earn points for earlier upgrades. I do believe some of their plans can upgr...
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If I were you, I would just purchase the phone at full retail price and maintain a month-to-month without being tied to a contract.
I did that a year ago when I purchased HTC Incredible. I am considering another device now and will probably just bu...
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I did that a year ago when I purchased HTC Incredible. I am considering another device now and will probably just bu...
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Question:
How did you sign a 1 year agreement on Feb 28th last year with a Droid Inc.?
Did that phone not launch at the end of April?
How did you sign a 1 year agreement on Feb 28th last year with a Droid Inc.?
Did that phone not launch at the end of April?
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everyone of them is getting rid of the one year contracts
I worked for T-Mobile, and now work for Sprint. I have an iPhone with AT&T and I just saw this for Verizon so its true that all of them are getting rid of the one year contracts.
Apparently they weren't cost effective?
Apparently they weren't cost effective?
"Apparently they weren't cost effective?"
Bingo
Bingo
If that means they make more money on two year contracts than one year contracts? Yes. It is not that they were losing money on one year contracts, it is just that every time a customer signed up on a one year contract they bemoaned the revenue they...
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Unfortunate, but necessary
First of all.....let's get real here....until August 24 of last year when I finally quit I sold phones and service for at&t.....and not ONCE during my tenure there did I EVER sell a one year contract....and only once did a customer ever even ASK about 1 year contracts.....and he declined to sign one after I explained the phone he wanted would be more expensive than under a 2 year contract.
Now Verizon is a different company of course, but I rather doubt that they sell any more 1 year contracts than does at&t.
The actual number of people that this affects is microscopic.
But let's get serious here.....as phones get more advanced, with more and more features, they also get more expensive, and as they get more expensive, the risk of ...
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Now Verizon is a different company of course, but I rather doubt that they sell any more 1 year contracts than does at&t.
The actual number of people that this affects is microscopic.
But let's get serious here.....as phones get more advanced, with more and more features, they also get more expensive, and as they get more expensive, the risk of ...
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In 2004 I was a rep in a Verizon store. We sold the Audiovox (Toshiba) 9500 for $499.99 and the Motorola T730 for $449.99 Full retail. Discounted customers were walking out the door paying $250 or $300 for those phones. The price of phones has actu...
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Really?
Man all you guys nerd raging really is silly, i havent known anyone to sign up for a one year in probably three years, its such an under used part of their policy the tab for it probably has thick sheets of dust on it.
Also, hasen't anyone considered that this might be the first in the eventual move to non contract completely? (This is a book, I'm so sorry)
If you look at it properly:
1. Many phones are lower in price and no longer carry the mail in rebates as all the old phones used to.
2. A huge shift in the US base as a consumer has shifted to much more smartphones, which turns us into a market more like europe/asia as far as device purchase/service needs.
3. Despite Apple's ridiculous testicle hold and price gouging on Ver...
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Also, hasen't anyone considered that this might be the first in the eventual move to non contract completely? (This is a book, I'm so sorry)
If you look at it properly:
1. Many phones are lower in price and no longer carry the mail in rebates as all the old phones used to.
2. A huge shift in the US base as a consumer has shifted to much more smartphones, which turns us into a market more like europe/asia as far as device purchase/service needs.
3. Despite Apple's ridiculous testicle hold and price gouging on Ver...
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The only reason nobody subscribed to one year contracts, is because of the new every two, which vzw has now eliminated in addition to the elimination of the 1 year contract. They have also no more 1 year early upgrades, no more 30 day return policy. ...
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The Kool Aid must be spiked. Get Verizon's *Bleep* out of your mouth. For real. The only carrier whose customers are less satisfied with their carrier choice is AT&T and even then the margin is small. T-Mobile ties Verizon in customer satisfaction...
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What do you expect?
This is Big Red we're talking about here. "We're the best so love it or leave it" should be their motto. Probably the most arrogant company in America right up there with Apple
It's a tie, but I hear Steve Jobs is worse than anybody.
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That's why I'm so surprised to see a Verizon iPhone.....
Apple and Verizon...the two most arrogant, controlling companies in America....how could they possibly come to an agreement?
But given the recent massive changes in Verizon policy lately, ...
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Apple and Verizon...the two most arrogant, controlling companies in America....how could they possibly come to an agreement?
But given the recent massive changes in Verizon policy lately, ...
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Pissed beyond belief
Its complete bs. Makes me want to leave VZW. I get a new phone every year. When I heard that i couldnt do a early upgrade at the one year mark i was pissed and I called and complaIned and they said I could do a one year contract. I asked how much the iPhone is on a one year contract and it is $700 something dollars. They are smoking crack. Even AT&T isn't doing that to me. I carry a iPhone on at&t and a dinc on verizon. Was planning on dropping at&t but now not so sure. I can take my $400 monthly phone bills all to at&t. I have called in and went into the stores several times to complain. Everyone needs to do the same.
And just so some smart dumb person (troll who dosnt have anything else to add to the convo other then pointing out things in the post) doesn't come and comment, two phones don't add up to that amount. I have other family members on my plans.
You realize that nobody in the store actually gives two sh*ts if you come into the store and complain. The guys in the store can't change policy, have no connections to anybody that can change policy and are quite frankly, just trying to earn a paych...
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Ever thought of contacting your congressional representative and/or your state's PUC (that's Public Utilities Commission) regarding this matter?
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How is this greedy...
When it's usually cheaper to do a 2-year contract and cancel after a year anyway? It doesn't make sense these days to do a 1-year contract.
Maybe, but choice is good.
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It makes PERFECT sense. One year contract one can upgrade every ten months and one's phone is NEVER out of warranty. They are eliminating a consumer's choice. IF everyone is signing two year contract as they contend then WHY would it matter if they...
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"Responding to what our cutomers want"...wha?!
LIES LIES LIES. Really, did you have a swath of customers asking for this?
My last two phones I actually bought from them were one year phones. And now they're going to force people to sign up for two years on dumb phones and refurbs as well?! They better drop the prices on those particular phones; but of course they won't. 🙄
I HATE being locked in on a two year. I keep my "options" open if I need to jump ship. And it appears I will be jumping when it's time for another phone. Or unless I can find some decent phones on Ebay; now even those phones will cost more with this new policy.
Also they charge more for a one year phone anyway. Why would they do this?
Honestly, I don't think most people ever consider one year con...
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My last two phones I actually bought from them were one year phones. And now they're going to force people to sign up for two years on dumb phones and refurbs as well?! They better drop the prices on those particular phones; but of course they won't. 🙄
I HATE being locked in on a two year. I keep my "options" open if I need to jump ship. And it appears I will be jumping when it's time for another phone. Or unless I can find some decent phones on Ebay; now even those phones will cost more with this new policy.
Also they charge more for a one year phone anyway. Why would they do this?
Honestly, I don't think most people ever consider one year con...
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Now, now...don't call in the Beelzebub to deal with Lucifer. What if they team up and decide to feast on our flesh first?
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Verizon can do what they want, clearly, but don't insult our intelligence by saying it's "what the customers want." Clearly that IS bs. It's what THEY want. If so many of their customers opt for the 2 year, then what would be the big deal with leaving...
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Makes No Sense
They charge you extra for the device for a 1 year contract to make up for the additional lost 12 months of billing. I just bought the 4G Mi-Fi and paid $70 extra to get it as a 1 year contract. I figured they had both ends covered this way and it makes everyone happy. This just doesn't make sense unless they now feel the monthly charges are now going to outweigh the additional cost of the device being sold?!?!? 🤨
They never wanted to sell one year contracts. In the stores if a one year contract walked out the door the Regional Vice President would *Bleep* out the District Manager who would then *Bleep* out the Store Manager who would then *Bleep* out the rep ...
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Showing Their *Bleep*
This is the beginning. I noticed that the iphone was only available with two year contract or month-to-month. It was just a matter of time until they eased the *Bleep* a little further. Pretty soon you're bent over wondering how the hell you got raped. They will raise the full retail prices of handsets next.
No, they're gonna raise the 2 year pricing next under the guise of "this is a newer model than your ABC phone". You're not gonna have a viable alternative other than full retail so you'll either pay it or settle for a different device....we'll just h...
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Verizon has done quite a bit. No more one year contracts, they are no longer providing the new every 2,even though I still have my new every 2 available to me, it has been cut in half to $50.00. After that is used, it's gone. When purchasing a phone...
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