Verizon Set to Alter their Upgrade Policy

[bazar6]

Where did all of this start... And is there an official VZW announcement? I'd love to think this isn't really going to happen, but with how much info there is, I have a feeling that it really is true, and I just don't want to believe it.

Course I'm on a business plan, I believe they aren't affected by the change, because it seems like, based on which plan it is, this is already true.

 

[Blackhawk55]

Where did all of this start... And is there an official VZW announcement? I'd love to think this isn't really going to happen, but with how much info there is, I have a feeling that it really is true, and I just don't want to believe it.

I'm sure you've seen the official looking VZW placard in the original post of this thread. Then today it was noted on multiple blogs that the "rumor" and turned into an "announcement". Yet the reps find it difficult to believe that a change could be made on Sunday the 16th when they have not heard anything here by Thursday. Stranger things have happened I am sure!

 

[bazar6]

Very true. And in regards to the "official looking placard," I have photoshop, as I'm sure many others have on this forum as well, and can make something looking that good in no time at all. I don't take too much of this to heart unless I see it on VZWs site, thats about as official as you can get. But it's good to prepare from the rumors lol.

 

[soulpatch]

Its on CNN Money: Verizon quietly scraps "new every two" credit - Jan. 13, 2011

 

[kodiak799]

Its on CNN Money: Verizon quietly scraps "new every two" credit - Jan. 13, 2011

Man, this math still doesn't make sense to me. According to the article, they pay $300 to upgrade 1-yr contracts every year. The 2-yrs would get an additional $50-$100, or roughly an average cost to VZW of $175-$200 a year. Why would you take away the incentive for people to lock-in for 2-yrs, from a cost perspective that looks like a win-win for both consumer and VZW?

Will be interesting to see what happens. I just can't reconcile how a 2-yr contract is going to make sense for the consumer.

 

[Beka27]

Its on CNN Money: Verizon quietly scraps "new every two" credit - Jan. 13, 2011

Man, this math still doesn't make sense to me. According to the article, they pay $300 to upgrade 1-yr contracts every year. The 2-yrs would get an additional $50-$100, or roughly an average cost to VZW of $175-$200 a year. Why would you take away the incentive for people to lock-in for 2-yrs, from a cost perspective that looks like a win-win for both consumer and VZW?

Will be interesting to see what happens. I just can't reconcile how a 2-yr contract is going to make sense for the consumer.

That is the big question. How are they going to sweeten the deal to encourage 2-year contracts? I will be sure to ask when it's time for me to upgrade. If they can't give me any good reason (besides saving $70-100 on the phone), sign me up for a year...

 

[hookbill]

I never knew there was a one year contract until recently. And people are talking about new phones every year, mines always been once every two years unless I called them and asked.

I've had one year extensions on to my two year contracts but they've always been two years.

I'm still eligible for the new every two. My next one comes in 15 months.

 

[Beka27]

I didn't know either. It wasn't until I registered on this site that I found out. They do a pretty good job hiding the 1-year contracts... lol. Finally, I went on VZW and saw that the price box is actually a DROP-DOWN box and lists the 1-year price in there (where no one sees it... conveniently). BUT... now I know.

 

[bazar6]

Its on CNN Money: Verizon quietly scraps "new every two" credit - Jan. 13, 2011

Dang, that's what I was looking for. I trust the guys who write the news articles here, but they linked to android central, and they didn't link to anywhere but a screen shot.

Would gladly have put an icon of "fist in mouth"...

 

[kodiak799]

I didn't know either. It wasn't until I registered on this site that I found out. They do a pretty good job hiding the 1-year contracts... lol. Finally, I went on VZW and saw that the price box is actually a DROP-DOWN box and lists the 1-year price in there (where no one sees it... conveniently). BUT... now I know.

Yep, include me in that group unaware of the 1-yr. I always just assumed the good discounts were 2-yr contracts. Even going to the website the last few years I still didn't know about that drop box until you told me.

 

[budmonster]

Can someone please explain this to me, I'm not going through all these threads? I'm not very smart when it comes to these upgrade plans and this NE2 jargon, so I need your help.

I just upgraded to that 1300 minutes promotional plan about a month ago and I also upgraded my phone from my D1 to the DX and got the promotional price of $199.

How does this new VZW policy effect me now?

Thanks.

 

[scrub175]

is this a ploy to push more yearly upgrades vice new every two? AT&T offers yearly upgrades so I hear. With the flood of new phones it would make sense to cut the subsidized price and reduce the term of the contract to spur yearly sales, if in fact the yearly contract is not going away as well.

Look at it as an opportunity to help the phone makers and a chance for Verizon to put a little extra coin in their pocket. A two year subsidized price for a newer phone is usually 149-199, with a yearly upgrade price of 250 to 300. So Verizon will move phones yearly and collect more upfront. In addition they won't have me calling different customer service reps every day until I get an early upgrade.

Like I'm the only person here that called everyday for an upgrade to the X...

 

[kodiak799]

Look at it as an opportunity to help the phone makers and a chance for Verizon to put a little extra coin in their pocket. A two year subsidized price for a newer phone is usually 149-199, with a yearly upgrade price of 250 to 300. So Verizon will move phones yearly and collect more upfront. In addition they won't have me calling different customer service reps every day until I get an early upgrade.

We don't have the numbers to really know, but it does make sense they are pushing annual upgrades to help the mfr and it won't cost either any more money (prices should drop as the tech matures and efficiency gains are made).

Maybe the simple answer is there are tons of feature and dumb phones sitting on NE2 upgrades, a potentially big liability for VZW (takes months, even maybe over a year to recover that subsidy). Looks like they are pushing to expire and elimate those upgrades. If it pushes people to upgrade earlier to a smartphone, VZW wins, if not the upgrade expires and VZW wins....you know, use it or lose it.

 

[kodiak799]

So explain this one to me....I go to Amazon and can get the Droid X, with new contract, for $49. On VZW web, the 2-yr price is $200. Or I can get the DInc for $0.01 vs. $100 thru VZW.

What's the deal? Am I a moron for buying from VZW all these years? As far as I know the Amazon deals are new phones and not used or refurb.

 

[soulpatch]

Those deals on phones are fairly new and outside of just recently VZW has had some of the best deals on phones since you could get their promos...