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Verizon Wireless to Eliminate One-Year Contracts

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My only real problem with this development is...

rsg689

Apr 11, 2011, 10:13 AM
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.
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T Bone

Apr 11, 2011, 11:24 AM
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 if there was no subsidy the rate plans would cost the same.

The point is, if they are going to give you a discount on an expensive phone, they want you to stick around long enough for the transaction to be beneficial for them.
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rsg689

Apr 11, 2011, 11:38 AM
There is a "mark up" on the plans to include the phone subsidy. Customers are paying for the phones, either upfront (full retail) or over the course of the contract(2 year pricing)
The carriers have the loss of the device "built in to the plans" So if you don't take a subsidy, then you should get a lower monthly plan.

Now that I've said this, I don't think for a second that the Carriers will change their ways anytime soon. But we can all dream can't we? 😁
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petlover1

Apr 11, 2011, 3:33 PM
I understand what rsg689 was saying. That was the way T Mobile used to do their plans, if you paid full retail for a phone you then could select from the plans which were twenty dollars less a month than the equivalent plan with a subsidized rate. There was no contract with this unsubsidized rate either (of course)and if you did the math saving twenty dollars every month times 24 months was actually the better deal.The subsidy is not 480 dollars less than the retail cost of the phones but maybe that lost income for them since they will be part of ATT within a year or so if approved.
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Azeron

Apr 11, 2011, 5:41 PM
Sure. The dream becomes more fantastic as more and more rival carriers die, however. When people are propping up Sprint, MetroPCS, Leap and Cellular South (as one poster reaching for the sky did in another forum) you know that the end is near. The choice is AT&T and Verizon which once Verizon launches tiered data plans...will not be much of a choice at all.
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Cosmic Spiderman

Apr 12, 2011, 12:12 PM
I keep hearing "tiered data". It is already tiered on MBB 3/$35, 5/$50, 10/$80, and they had tiered on phones $10/25MB, $15/150MB, $30/Unlimited. Don't get me wrong, the $10 and the $15 plans were worthless unless you had a feature phone or a BB, but I have not seen anything nor do I have any reason to believe there wouldn't be an unlimited option even on a teired plan.
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