Amazon drops the price of the RAZR to $.01

[FoxKat]

Not true, I did exactly what they are suggesting with the bionic a few months ago. Added a new line, and got the Bionic for .01. When I recieved the phone I activated it on the added line and then went into a verizon store to get a new sim and have it switched onto my line the same day. Then I put a "dumbphone" on the added line and canceled the data service, keeping the line itself open.

Unless something has changed in their policy (it hasn't, I just checked) you can do this without penalty as long as you keep the line open (No data service needed for that line) Both according to the written policy and the amazon wireless rep I spoke with over the phone

I will tell you this...I was on with a rep last night for an extended period of time. This was a supervisor - well informed and he was adamant that what I have said is true. He informed me that both the phone line (add line for 9.95/month) and the data package (minimum 300MB 4G Smartphone Web Browsing and Email $20.00), added MUST remain tied to the phone purchased with Amazon for the $0.01, or they (Amazon) will charge you the Amazon customer $250 for breech of terms and conditions, unless 181 days has passed. If this were not true, then there would be no 181 day chargeback since there would have been no additional incentive beyond the standard 2-year contract. Once the 181 days has passed, Verizon will not be charging back Amazon for an interruption of either the data package or the service (even with a full termination of both service and data), however Verizon STILL can charge you for early termination of the phone line for the remainder of the 2 years.

What I think is happening here is that this may be the agreement they made with Verizon, and this is how they subsidize the phone price, but that perhaps Verizon isn't holding up their end of the agreement by informing Amazon when service changes on one of the phones.

Verizon pays a certain amount to the Authorized Retailer (Amazon in this case) for the activation of a new line (phone number). This subsidy is what is tied to the Verizon Wireless Early Termination Fee. In the case of these EXPENSIVE phones (retail, $799), the subsidy for the new phone line activation is far less than would be necessary to bring the price down to $0.01. Fortunately, these phones also require a data plan and it is THAT additional monthly revenue that Verizon will receive which gives them sufficient profits over the timeframe indicated, to enable them to subsidize the phone's costs further (in this case, with another $250). That additional subsidy is tied to the AmazonWireless Instant Discount Policy. I know all this, not just because I am an educated consumer, but I was also a Bell Atlantic Mobile representative in the past, working for an Authorized Retailer.

Now, you may have in fact gotten the Bionic under the arrangement you mentioned, and you may have slid under the radar screen (as I am sure countless others have), but if Amazon knew about it, they'd back-charge you the $250 Instant Discount Fee (IDF), since that instant discount is what allows them to price the phone essentially for FREE.

See below;

AmazonWireless Instant Discount Policy

When you purchase your device with service from AmazonWireless.com, we automatically pass along an instant discount from the carrier to you. This discount has been provided to you based on your agreement to (a) activate a new, or extend an existing, line of service for this device with the carrier, and (b) maintain this service in good standing for a minimum of 181 consecutive days. If you do not activate or extend a line of service in connection with this device, or if your service is canceled/disconnected before 181 consecutive days, AmazonWireless.com will charge you $250 per device, plus applicable taxes.


The above is where they tie in BOTH subsidies, so that in addition to the agreement with Verizon, this ALSO provides Amazon with a further financial incentive to subsidize the phone via the data plan charges. Below is the terms and agreement with Verizon, completely separate, however tied to the agreement with Amazon, which gives them the 2-year contract protection...


Verizon Wireless Early Termination Fee

If you purchase a discounted phone with a two-year contract and then cancel after the 14-day return period, Verizon will charge a pro-rated Early Termination Fee based on your phone/device type.
For Smartphones purchased after November 14, 2009, such as the Motorola DROID and BlackBerry Storm: Verizon charges $350 minus $10 for each full month of your Service Commitment that you complete.

For a list of advanced devices subject to the $350 fee, check http://www.verizonwireless.com/advanceddevices
For Standard Phones, such as the Motorola Barrage or Samsung Intensity: Verizon charges $175 minus $5 for each full month of your Service Commitment that you complete.
NOTE: Once you fulfill your service contract, you'll automatically become a month-to-month customer.



I do think these things will flush out and there will be repercussions for either Verizon or Amazon, and that there may also be people who take advantage of this incorrectly, who will be charged back eventually. I am just trying to inform people so they don't get themselves in a jam unknowingly. If you know the rules and then conscientiously decide to see if you can skirt them, and then get nabbed, it's on you.

 

[nateohio]

AmazonWireless Instant Discount Policy

When you purchase your device with service from AmazonWireless.com, we automatically pass along an instant discount from the carrier to you. This discount has been provided to you based on your agreement to (a) activate a new, or extend an existing, line of service for this device with the carrier, and (b) maintain this service in good standing for a minimum of 181 consecutive days. If you do not activate or extend a line of service in connection with this device, or if your service is canceled/disconnected before 181 consecutive days, AmazonWireless.com will charge you $250 per device, plus applicable taxes.

Where exactly does it state that you can't switch the phone to a different line, but still keep the new line active??? Nowhere does it state that you must keep the data package in place, it only talks about the line of service. That is my take on it, and that is also the reason why I called and spoke with numerous reps concerning this matter.

If they do start charging people back like you say, they are opening themselves to litigation anyways because they do not have those stipulations clearly spelled out anywhere.

Either way, it's a moot point now, because the penny sale is over and if you're going to do what we're talking about you might as well pay full retail because it would be more cost efficient.

 

[FoxKat]

Where exactly does it state that you can't switch the phone to a different line, but still keep the new line active??? Nowhere does it state that you must keep the data package in place, it only talks about the line of service. That is my take on it, and that is also the reason why I called and spoke with numerous reps concerning this matter.

If they do start charging people back like you say, they are opening themselves to litigation anyways because they do not have those stipulations clearly spelled out anywhere.

Either way, it's a moot point now, because the penny sale is over and if you're going to do what we're talking about you might as well pay full retail because it would be more cost efficient.

Well, it can be argued that "in good standing", considering this is a smartphone which requires a data plan, would be legalese enough to satisfy an attorney or court. Seriously, do you really think they're going to let themselves be lambasted for potentially tens, if not hundreds of thousands of smartphones and not have recourse to recapture the costs? Look at it this way...

You add a line to your existing service. That's $9.99. Then you add the discount data plan to the service. That's $20. So for the next 6 months, all Amazon is requiring is that you pay 29.99 times 6, or $179.94, and for only that commitment, they're going to give you a phone which retails for $799.99 for (almost) free? You've got to be crazy to think so. So then let's add the costs for the entire 2 year contract and see if it pans out...

$9.99 for 24 months is $239.76. Then $20 for the 24 months is $480. The two together are $719.76. It still doesn't add up, because remember, Amazon is STILL making a profit at that total annual cost (and so is Verizon)! If you increase the data plan to $30 per month (which anyone with half a brain would do), then you're talking about $720 in data charges, add the $239.76, and you're at $959.76. NOW it starts to make sense. With that total, Amazon could give you a $800 phone, Verizon pays Amazon - let's say $59.76, and Verizon still makes $100. Now we all know the retail price is not the cost, so some could argue that based on actual cost, the first example could work, but really? I mean, really???

Don't fool yourselves.

Now why did I go through all this? I said it before. I am simply trying to warn ANYONE who tries to scheme a way to get the phone for "free" and not take on any more added expense than the $9.99 to add a new line to the family plan for the 2 years (without adding a data plan for the minimum 181 days), that they may be in for a rude awakening. I say this because I was also thinking I could do this and through some "loophole" I'd get by, however after spending many hours on a dozen or more phone calls to both Verizon and Amazon starting Friday and every day through Monday, speaking to as many different representatives in both the customer service departments and the Supervisors, I have come to the conclusion that doing so might just end up being a big mistake *i.e. $250 chargeback from Amazon, losing my Unlimited Data grandfathering, and getting stuck with another $9.99 per month to boot! I decided the information was too compelling that the consequences could be bad.

You (and others) do what you wish, but don't say someone didn't warn you.

 

[satarecah]

Fox i feel as if you work for Verizon some times xD your like mad smartt lol i was about to post all this and read it and was like o.o come on! but yeah good info Btw Fox did you get a case and if so which one?

 

[FoxKat]

Fox i feel as if you work for Verizon some times xD your like mad smartt lol i was about to post all this and read it and was like o.o come on! but yeah good info Btw Fox did you get a case and if so which one?

LOL! I don't work for Verizon, and I am not mad smart, but I am a mad researcher! I don't like to sound like a know-it-all but unfortunately at times I come off that way. Still, regarding what I was communicating, I simply didn't want anyone to suffer for the lack of clear verbiage on Amazon's site, and have them as a result get whacked with that $250 charge. The old saying..."If it sounds too good to be true, it probably is.", is apropos here.

As for a case...well I am still considering what case to get, or if I am to get one at all. The more I look at the form factor of this phone, the more I like it and would feel slighted if it were suddenly hidden inside a fatter and wider case. But then, I look at that beautiful frame and glass and say, I'd hate to get a scratch or nick or gouge in it and then I'd be looking at it and bumming out and obsessing over it every time I see it - like I did with the scratch on my D2...(yeah, I'm a little OCD, I suppose...) :blink:

I did see the Otterbox Defender and although it's NO WHERE NEAR as beautiful as the Naked RAZR, they did try to make it look as close to normal as possible, even giving the back a pattern and putting a bezel around where the rear camera is. The Commuter is a little less high-end and has a cutout rather than a bezel around the camera. Still, neither one will fit my new car mount, so I'd be putting it on and taking it off (the case - that is...) several times a day...no fun.

I did get my car mount today :icon_ banana:. SO, now I can enjoy the phone again just as I did with my D2. For everyone's benefit, a really cool thing they did with the car mount.

They made a cutout on the back for where the camera lens is (and also where the speaker is), so you can take photos and video with the camera in the bracket! I had the mount for my Original Droid 1 and it didn't have the cutout, so I took a drill and made a hole for the camera. I am impressed that Motorola though this one out.

See images below.

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