Verizon Likely Following T-Mobile's Uncarrier Plans Too

[dgstorm]

It's ironic when the industry leader plays follow the leader with their competitors. That's apparently a new trend we are seeing. Just moments ago we shared a story about AT&T following in T-Mobile's footsteps with their Next plan designed to compete with T-Mobile's Uncarrier and JUMP program. Late last night some intel hit the web that Verizon will be jumping in the conga line as well. According to the leaked information, Verizon will be offering its own program called "VZ Edge" and will likely be launched on August 25th. Here's a quote with the details,

Verizon is preparing to announce a new program that would allow subscribers to upgrade their smartphones more often to “stay on the leading edge of technology.” The program, reportedly known as VZ Edge, would allow customers to “pay a monthly fee instead of purchasing a device upfront,” and “upgrade anytime once 50% of the device is paid off.” Verizon notes that customers will benefit by “receiving the latest devices on the best network,” have lower upfront costs, avoid upgrade fees and won’t be required to sign a contract.

The leak didn't share all the details of VZW's new concept so it's possible they are still fine-tuning the details, but something is definitely in the works.

When T-Mo first announced their new desire to shake things up in the mobile industry, we speculated that it wouldn't be too long before the other carriers offered something similar. That prognostication was right on the money. It may not be surprising, but it is certainly welcome.

Source: BGR

 

[dezymond]

Verizon has no choice but to follow, it's bad enough they already get flagship phones later than every other carrier.

 

[Dusty]

Hear me now... Believe me later.

 

[kodiak799]

LOL, people are getting all excited over paying MORE for their phones. Shouldn't even be in the subsidy business, but then I guess a lot of people couldn't afford a phone for their service.

 

[pc747]

Comparing Verizon, AT&T, and T-Mobile?s New Upgrade Plans ? Droid Life

Like how they broke it down ("double pimp slapped")

 

[Rhino94]

I'm curious what Verizon will do now that all of its competitors are offering these plans when you can upgrade sooner. I mean its about time. No one really wants to wait 2 years for their contract to be done to be able to upgrade I think that is just ridiculous. All my friends upgrade their phones whenever. Of course they don't have anywhere near to what I have in coverage but still. It just makes sense for Verizon to offer something like this.

 

[kodiak799]

I think it's ridiculous that people need a $600 new phone every year. One way or another, you're paying the full cost of that phone. If you can afford it, then more power to you. But most people can't.

Behavioral economics and mental accounting are truly fascinating. Most people wouldn't spend $600 outright for a new phone every year, but they'll find a way to pay $20 a month more on their bill to do just that.

 

[TheOldFart]

Do I have this correct? AT&T is charging the subsidized price for data and then also charging the full price for the phone, paid off over 20 months. Also, the expectation is that Verizon will also charge the subsidized price for data and then charge full price for the phone, paid off over 12 months and also charging a $24 finance fee. The $30 that Verizon currently charges for data includes about $20 per month to pay off the subsidized phone. If you currently keep the phone for more than 20 months (now to become 24 months) then you are still paying the subsidy for a new phone that you aren't getting. Verizon already screws you if you don't get a new phone as soon as you are eligible and now they might want to screw you in addition to that.

 

[_33]

I was going through a phone every six months. I would buy low on CraigsList and sell the old one high. As long as I didn't need the sale money to buy the new one it works for me.


For some odd reason, TMobile has had a miraculous jump in reception here. My friends are now getting a strong 4g signal in my home. That about sealed the deal. I got one more waiting to come off of contract and I'm gone! I love the Jump Program idea and I will be saving $100.00 a month.

Also, my Verizon signal has been gone the last 10 days. Patchy 3g and no 4g. Last night I had nothing... couldn't even make a call. They said a week ago it was nothing. The problem is I took a job running 4, 10 man crews and having no solid data or texting has made me look like a blundering idiot. I can't wait to go.

 

[riko540]

They will charge you the same 100/month+ for unlimited calling and texts +2GB of data AND make you pay upfront for the phone. Great way to keep people in their current plans.

 

[kodiak799]

Great way to keep people in their current plans.

I think it's just providing an option. It should be considered a predatory sales technique, because it essentially gouges the poor and/or people who mismanage their money.

 

[jseah]

I think it's just providing an option. It should be considered a predatory sales technique, because it essentially gouges the poor and/or people who mismanage their money.

The problem with this assumption that it is a predatory sales technique that takes advantage of the poor is that these payment plans are subject to credit approval. If you assume that the same credit requirements apply that determines whether a new subscriber will have to pay a deposit, then the poor really wouldn't qualify for these payment plans.

 

[kodiak799]

The problem with this assumption that it is a predatory sales technique that takes advantage of the poor is that these payment plans are subject to credit approval. If you assume that the same credit requirements apply that determines whether a new subscriber will have to pay a deposit, then the poor really wouldn't qualify for these payment plans.

No...poor =/= bad credit. Unlike a bank, they don't take into account your ability to pay (your credit report doesn't show that).

 

[dgstorm]

Ultimately, if you really sit down and do the math on this "option" it costs you more money. It's simply a sneaky way to get more money from their customers. The reason it is such a blatant ripoff is because Verizon doesn't remove the monthly subsidy charge for the device. You are basically paying twice for the same phone, just so you can upgrade it more often.