What Will a Verizon iPhone Mean to You?
Jan 10, 2011, 12:07 PM by Philip Berne
After months of speculation, it seems Verizon Wireless might finally launch an iPhone at an event in New York's Lincoln Center tomorrow, January 11. Here's what a Verizon iPhone might mean for you.
Phone Scoop and a number of other publications have been invited to a Verizon Wireless event in New York City this Tuesday, January 11. Current speculation has us believing that Verizon might finally announce its own model of the Apple iPhone. But the speculation ends there. We have no official confirmation from Apple, and even if we knew for sure that an iPhone would launch this week, what exactly would that iPhone look like? What would it have on the inside?
More importantly, though, what is it going to take to buy one? Assuming you already have a cell phone contract, on Verizon Wireless or any of the major, nationwide carriers, what would buying an iPhone actually cost you?
Jumping Ship
If you are currently a Verizon Wireless customer under contract, you probably won't be able to pick up an Apple iPhone on Verizon for the lowest price available. Depending on how long you have left on your current contract, you will probably have to pay an upgrade fee (around $20 or so), and then pay for the new iPhone at almost the full price of the device. You might find some wiggle room here with the right salesperson, but Verizon Wireless does not offer early upgrades, like you'll find on T-Mobile.
When AT&T originally launched its iPhone, it allowed all existing customers to sign up for a new contract and buy the iPhone at the lowest price. Even if you had just signed a 2-year contract and purchased another phone the day before, you got the best price for the iPhone. AT&T also extended its eligibility requirements for the iPhone 4 to allow more customers to buy one for less. It is possible that Verizon Wireless could be more aggressive trying to draw buyers to its new iPhone, so we'll keep an eye out for special deals, especially for existing customers.
| Initial ETF for Smartphones | Decrease in ETF | Initial ETF for Feature Phones | Decrease in ETF | |
|---|---|---|---|---|
| AT&T | $325 | $10 per month | $150 | $4 per month |
| Verizon Wireless | $350 | $10 per month | $175 | $5 per month |
| Sprint | $200 | $10 per month after 5th month until $50 minimum ETF. | $200 | $10 per month after 5th month until $50 minimum ETF. |
| T-Mobile | $200 | $100 with 180 days remaining. $50 with 90 days remaining. Lesser of $50 or monthly rate with 1 month remaining. | $200 | $100 with 180 days remaining. $50 with 90 days remaining. Lesser of $50 or monthly rate with 1 month remaining. |
If you're not already a Verizon Wireless customer, and you're under contract with a different provider, you're going to have to pay an early termination fee (ETF). The good news is that jumping ship from other carriers to Verizon is less expensive than trying to leave The Network. Verizon Wireless charges $350 to dump your expensive smartphone plan, or $175 if you have a more basic device. For every month of service, Verizon drops the ETF on smartphones by $10, or by $5 for more basic phones.
If you're defecting from AT&T, you'll be paying $325 if you drop your contract in the first month. But for every month you've stuck with Big Blue, you'll pay $10 less. So, if you bought an iPhone 4 last June, and it's been 7 months since you signed a contract, AT&T knocks $70 off your fee, and you only pay $255. If you have a feature phone, and not a smartphone, your ETF on AT&T starts at only $150, but AT&T drops a mere $4 off the fee for every month you pay for service.
If you're leaving Sprint, expect to pay a $200 ETF if you're in your first 5 months of service. After 5 months, Sprint drops its ETF by $10 per month, until you're down to $50 five months from the end of your contract. At that point, $50 is the lowest you'll pay to leave Sprint early.
T-Mobile is a bit more complicated. If you have more than 6 months (180 days) left in your T-Mobile contract, you get slapped with a $200 ETF. With about 3 to 6 months remaining, you'll only pay $100 to leave. From 1-3 months left, you'll pay only $50, and if you leave in the last month, you pay only your monthly fee or $50, whichever is lower.
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Comments
Wow - speculation!
Not that I'm complaining so much; indeed, the article is a comprehensive look at the question of a Verizon iPhone, and compared to most other technews outlets (who have little beyond "Verizon iPhone Jan 11th! AT&T is hooped!" or some variation there of), it's a thorough examination of the industry in practical consumer terms.
It's a surprising shift in journalistic strategy for what has always been a very relia...
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Er..
If the Storm 9530 or Storm2 9550 are iphone clones it is only in the same sense that Bizarro is Superman.
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I didnt see any phonescoop putting down the iphone before... knowing its issues
We have all used an iPhone as our primary phone at one point or another. It's a great device.
the beginning of the end of exclusive handset deals...
Look for the FCC to place limits on carrier exclusive handset deals. Otherwise, as VZW & AT&T increasingly throw around their market share to monopolize (or duopolize) the most desirable devices, the wireless industry could be left w/ the two heavyweights and nothing but small remnants of all other carriers. And that would not serve the public interest.
AJ
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A single giant company that stretches from shore to shore and does nothing but sell a data connection. Its ran by the government so access is rolled into your taxe...
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im joining...
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iSheep rejoice!!!
Lovely..my android will be suffering while every iCrapPhone hogs our bandwidth.. 😢
There is no 5gig cap
While it's true that excessive usage every month could cause them to terminate your contract, this isn't at 5gigs, and if you go over the 5gigs they won't smack you with overages (unless you're tethering).
I've gone over 5gigs on many occasions (I love me internet radio and youtube) as have others. I have a friend who averages close to 10gb a month. We haven't been charged a dime overage, or cut off.
Now, if you're tethering and exceed the 5, that's a different story (especially if you're not paying for it). But there is no cap on verizon's unlimited smartphone plan.
Interesting article otherwise. If it comes, it should be interesting. I really want them to announce something like windowsphone7 or th...
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