Verizon Officially Announces Their Edge Upgrade Program With Few Details

[jntdroid]

Think about it. Right now if you want to go month to month you have to pay full price for a phone (about $600). With the new plan, you are month to month, but buy the phone over 24 months instead of paying up front. Do you really think that Verizon is going to allow you to pay about $300 less (half of $600 phone) than what you pay now if you want no contract? How likely is it that Verizon is going to be so generous that they are willing to lose $300 per year for each person who wants to sign up for this plan? I guess we'll have to wait and see, but doesn't AT&T require you to return the phone?

Yes, and so does T-Mobile. The only way they would let you keep the phone is if you keep paying them for it. But #1, that's just additional "credit" risk for them (i.e. tacking on multiple $30/month "plans" and an unlimited ceiling for ETFs), and #2, that doesn't even workout as well for them because they're going to refurb it and sell it for more than 50% when you turn it in.

Though you're right Miller, I also can't find anything official from Verizon stating the device has to be turned in, though I'm confident that's the case.

 

[Miller6386]

Well if that is the case you would be a fool to exchange it within 12 months. If you have to pay 1/2 anyhow you might as well just use it for a year..... Just my opinion of course..... But I do like how it's opened the door to get a note 3 when it hits vzw.... Especially if I can keep my note 2.

Proudly from Beer Tent Capital of the World

 

[equake]

Yes, and so does T-Mobile. The only way they would let you keep the phone is if you keep paying them for it. But #1, that's just additional "credit" risk for them (i.e. tacking on multiple $30/month "plans" and an unlimited ceiling for ETFs), and #2, that doesn't even workout as well for them because they're going to refurb it and sell it for more than 50% when you turn it in.

Though you're right Miller, I also can't find anything official from Verizon stating the device has to be turned in, though I'm confident that's the case.

There is nowhere it states about trade in or up. They have no use for the phone. But you do have to continue the plan ie pay for another phone and continue a service plan. Think of it as pay it forward.


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[jseah]

There is nowhere it states about trade in or up. They have no use for the phone. But you do have to continue the plan ie pay for another phone and continue a service plan. Think of it as pay it forward.


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Verizon Edge Upgrade Plan Launches August 25th: How it Stacks Up

It says right there that you need to trade in the old phone. It makes sense, you have only paid off 50% of the phone, so say the phone was $600, you technically still owe $300 for the phone, so by trading it in Verizon is essentially paying you $300 for your old phone since you don't need to pay off the remaining balance. Of course, you can always pay off 100% of the phone and then you shouldn't need to trade anything in since you have paid off the entire phone and don't owe them (Verizon) a dime.

When you lease a car with $X of residual value, what happens at the end of the lease term when you decide to trade up to the current model car? Does the dealer let you keep the old car? Of course not, you have to turn the car in, but you no longer have to pay the residual, or any of the remaining lease payments if there is still a lease term remaining.

 

[guidot]

Let it be noted, this is PURELY reactionary. There is no proactive part of Verizon other than having the largest network.

I bought into this on T-Mobile on a phone I outright own and let me tell you, including taxes and fees, paying $78 is much nicer than $100/mo plus renting a phone.

"Notarized"

 

[equake]

Verizon Edge Upgrade Plan Launches August 25th: How it Stacks Up

It says right there that you need to trade in the old phone. It makes sense, you have only paid off 50% of the phone, so say the phone was $600, you technically still owe $300 for the phone, so by trading it in Verizon is essentially paying you $300 for your old phone since you don't need to pay off the remaining balance. Of course, you can always pay off 100% of the phone and then you shouldn't need to trade anything in since you have paid off the entire phone and don't owe them (Verizon) a dime.

When you lease a car with $X of residual value, what happens at the end of the lease term when you decide to trade up to the current model car? Does the dealer let you keep the old car? Of course not, you have to turn the car in, but you no longer have to pay the residual, or any of the remaining lease payments if there is still a lease term remaining.

Gonna have to wait until the real plan is laid out and if they bury the details in fine print like in the ATT plan.

My 2 cents.

 

[kodiak799]

They are basically just facilitating a trade like some people were doing with EBAY and Swappa. The upside for VZW is for relatively low overhead they can charge a premium selling it refurb/certified.

But don't expect any real monetary value from this offer -the value to the consumer is avoiding the hassle of selling a phone on EBAY. You can upgrade after a year now, yourself, for about $300-$400 by selling your device and picking one up retail. Let's say you sell that for $250 a year later, and would basically cover your upfront on a new subsidized phone from VZW. So looking at something like $15/mo - over the 2 years - for your marginal cost to do this yourself now

 

[kodiak799]

The way I read it is the phone payment is a month to month deal but you will still have to sign a 2 year service contract.....

I figure it will work something like an equipment rental (think modem with cable). They would charge you roughly $30/mo equipment over the 2 year contract, and maybe allow you to upgrade every 6-12 months. And if they continue to "honor" the subsidy, then they would reduce that $30/mo by $10-15 that is currently baked into our contract. Or probably not - think of it as you are paying roughly an extra $400 over the 2 years for an extra upgrade. That $400 is basically the depreciation after 12 months on that phone you upgraded.

The challenge I see, as far as the economics, is that I'm not sure the phone values decrease linearly. If you want to upgrade every 6 months, you'd probably have to pay a little more.

 

[jseah]

Let it be noted, this is PURELY reactionary. There is no proactive part of Verizon other than having the largest network.

I bought into this on T-Mobile on a phone I outright own and let me tell you, including taxes and fees, paying $78 is much nicer than $100/mo plus renting a phone.

"Notarized"

But with T-Mobile, if you want to upgrade before you have paid off the phone, you have to trade in your old phone as well, so you technically don't "own" it either.

 

[kodiak799]

Sadly, these plans will be popular because people that don't really have $300 for the upfront on a top phone will find a way to come up with an extra $20 in their monthly payment.

I wonder if they won't also force you to buy insurance on the phone (another rip-off, for most people, which I finally ditched).

 

[guidot]

But with T-Mobile, if you want to upgrade before you have paid off the phone, you have to trade in your old phone as well, so you technically don't "own" it either.

Correct, or pay the bill in full. However, the question is whether they will reduce the cost of the service because they aren't "subsidizing" your phone anymore. That will be the telling tale.

 

[kodiak799]

Correct, or pay the bill in full. However, the question is whether they will reduce the cost of the service because they aren't "subsidizing" your phone anymore. That will be the telling tale.

And what about people trying to keep their unlimited plans? Theoretically VZW already raised your plan price by ending your subsidy and not reducing your plan cost. But I suppose since you would be signing a new contract that it's a non-issue.

 

[jntdroid]

Correct, or pay the bill in full. However, the question is whether they will reduce the cost of the service because they aren't "subsidizing" your phone anymore. That will be the telling tale.

You know darn well Verizon will never do that! :tongue: Unless T-Mobile's marketing push really starts to eat at the bottom line of Verizon / AT&T, we'll never see that happen.

In my opinion, Verizon's "ace in the hole" is their ability to do a Samsung-style marketing effort reminding the general public why they're the #1 network. That would put a real damper in T-Mobile's push. And I'm not talking some commercial quoting LTE speeds or ambiguous claims, I mean something along the lines of showing a family in trouble out in the woods who can only get service from Verizon.

I love T-Mobile, I love what they're doing, and I'm rooting for them (while still back on Verizon). I just hope they're ready (and they do seem to be trying) to push REALLY hard to amp up and spread out their network, or they could fall flat on their faces in a couple of years - because you know their per customer bottom line has to be taking a bit of a hit with their new "uncarrier" approach. They're gaining more customers, sure - which will keep them afloat for awhile. But if they don't back it up with the network, the hype will die down and people will be pulled back to Verizon or AT&T - especially if either of them go on a marketing offensive.

 

[equake]

Well I guess this is good for those who don't have 600+ dollars to buy a phone.

What I don't get is why this isn't available to unlimited data users since this is non contract bound



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[cereal killer]

However, the question is whether they will reduce the cost of the service because they aren't "subsidizing" your phone anymore. That will be the telling tale.

No way will they do that. You have to pay to play, and they are going to make you pay. Maybe they will surprise us, but I'm certainly not counting on it.