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Verizon Edge Upgrade Program Goes Live August 25

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Without lowering the plan price, you are being double charged for the handset. ..

yourvoiceofreason

Jul 18, 2013, 11:40 AM
Some are not understanding that the price plan has built into it the cost that allows vz (or att) to subsidize the handset costs..But if the phone isnt being subsidized, the plan should be cheaper (just like tmo's value plans are cheaper than its classic plans). So customers who take advantage of this program are really being double charged for the handsets, since the price plan cost remains the same.
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jsd0108

Jul 18, 2013, 12:33 PM
The cell carriers don't want to be in the phone subsidy business. They would much rather the customer bring their phone or pay full cost for one so that they don't have to use the revenue from the plans to recoup the money from the phone subsidy. If they can do that, then that equals more profit.

It makes good business sense. The only reason that current system of subsidies was started was to give the customers an incentive (a cheap or free phone) to sign up for a service agreement. The industry is mature now so those incentives will be going away since most people feel that a mobile phone is a necessity now and not a luxury and will pay for service regardless.

These types of programs are just the next step toward eliminating tradi...
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yourvoiceofreason

Jul 18, 2013, 1:19 PM
I understand what you are saying, and I dont disagree with anything that you said. However, Verizon and ATT charging the same plan price for this as they do for plans with subsidized phones, is noticeable to those paying attention.

I think they should do what TMo did and lower the plans for ones who are not getting a discount on the devices. So the only thing that I do not like is that the plan prices are the same; I do not have a problem with the device program itself.
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DarkStar

Jul 19, 2013, 4:52 PM
Verizon does not want you to bring your own phone. They want you to have a phone they approve of and that is all.
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Iknownothing

Jul 21, 2013, 8:22 PM
Carriers love being in the phone subsidy business. It allows them to overcharge you for the phone and it is essentially the only thing that allows them to charge you an etf. The fact that they offer exactly 0 incentive to purchase the phone at retail prices should be the big clue.
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Renaldo

Jul 19, 2013, 8:55 AM
Do you really think there in business to lose money?
The phone subsidy is based on you having the contract for 24 months. They have to be able to resell the phone after 6 months, they cant sell it for full price, so they have to cut their losses somewhere. You do better going on EBay and buying the phone.
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yourvoiceofreason

Jul 19, 2013, 9:22 AM
Do you really think that they were losing money before these new handset programs?

The point I am making, which I do not think is a hard one to understand, is that their rate plan prices have the cost for the subsidy built in. If they now want you to also pay full price for your device, while keeping the plan the same price, then in reality, they are charging twice for the device...

I am explaining it from a consumer's point of view
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Renaldo

Jul 19, 2013, 9:41 AM
I do understand your point, but the subsidy was with you staying for two years, what happens when you leave?
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crood

Jul 19, 2013, 9:52 AM
If you leave, you have to pay off what you owe for the phone. It really has nothing to do with his point. You've paid the full price of the phone, plus the amount that covers the subsidy for however many months you maintain service.
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tjobrien21

Jul 19, 2013, 1:57 PM
The point is, for the time you ARE using the service, you're paying the payment on your device, AND paying a plan that's got the subsidy payment built in. So you leave in 12 months, big deal - except that during that 12 months, you paid your phone's payments via "edge", as well as the standard rate plan price. During that time, you essentially made double payments, but they simply pocketed the second one.

The number of subscribers is going flat because most people who want a phone have one now. The only way to make more money is to squeeze harder the customers you already have. Since the almighty dollar is king and no company can be content to just continue making 800 million in profits (it's always gotta be MORE, MORE, MORE!!), this is o...
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KOL4420

Jul 19, 2013, 5:43 PM
These carriers dont really have to do anything or give consumers anything. They can actually just be like Tmobile and say hey buy this phone at regular price and pay us this much every month period. No discounts.

But hey we all know that we cant afford $600 for a phone up front so we look for what works for us so we can get our hands on the phones that we want that most of us dont really need think about it. The over 200 features your phone gives you how many of them do you actually use? seriously.

These carriers offering such a huge discount on these phones they are taking a risk as well assuming that you wont default on your payments.

The fact that Tmobile is pretending that they are on the consumers side is actually quite anno...
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yourvoiceofreason

Jul 19, 2013, 6:12 PM
Ultimately I agree with where you concluded, as I think the best option is to buy an unlocked phone also...

However, I think it is safe to say that T-Mobile's model is more consumer friendly than the others, and even with financing the phone, their plans are still more economical..

The signal part...depends on where you are...some places it does suck and others it is great..

But explain how it is baloney saying that the subsidy is built into the price of the plan (for ATT, VZ, Sprint)..I do not think I understand what you are saying..
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optimizm324

Jul 19, 2013, 11:29 AM
And....that other 1/4 of the retail price of the phone is essentially your "upgrade" fee for being able to get a new phone at the 6 month mark. Not exactly better than AT&T's plan. I agree, the service plan should decrease in price with this program.
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mrcrout

Jul 20, 2013, 11:57 AM
I think a little bit too much is made of Edge. The only people that probably will use this program is phone addicts. whith that being said an addict will never pay the full payment for ONE phone using this program. they will trade it in at some point. so in turn it's like leasing. when or if you decide to get the of the loop pay up to half or more of the last phone and sell it and pay off the balance. this is a good thing for people that don't want to be tied to a contract but can still use the latest and the greatest equipment. I do believe if a subscriber has bought a phone outright or finishes making all the payments using this program the should get a lower priced plan rate.
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