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Mobility


Verizon VZ has eliminated contracts for new and existing customers buying a new smartphone

Verizon Eliminates Smartphone Contracts

  • Written by Dan Kobialka 1
  • August 11, 2015
Verizon (VZ) has eliminated contracts for new and existing customers buying a new smartphone. Here's everything you need to know.

Verizon (VZ) has eliminated contracts for new and existing customers buying a new smartphone.

Beginning Aug. 13, Verizon will offer four sizes of data to match how its customers use its wireless service.

The company’s new pricing plan require no down payments, activation fees or two-year contracts, Verizon said. It also enables customers to either pay for the entire price of their smartphone upfront, Verizon said, or pay the phone off every month over the course of two years.

Verizon’s new data options include:

  • Small – $30/month for 1 GB of shareable data.
  • Medium – $45/month for 3 GB of shareable data.
  • Large – $60/month for 6 GB of shareable data.
  • X-Large – $80/month for 12 GB of shareable data.

“Customers said they don’t want to have to do a lot of math to figure out their best options, and we heard them,” Rob Miller, Verizon Wireless’ vice president of consumer pricing, said in a prepared statement.  “A plan with small, medium, large and x-large choices makes sense for the way people actually use their wireless service.”

In addition, every smartphone line is $20 per month on Verizon’s new pricing plan, tablet and Jetpack lines are $10 per month and connected device lines for devices like smart watches are $5 per month.

Verizon recorded $32.2 billion in total operating revenues in the second quarter of this year, up 2.4 percent year over year. The telecommunications giant continues to take steps to expand globally as well.

For example, Verizon in May announced plans to buy AOL for $4.4 billion. Verizon finalized the AOL acquisition in June. 

What are your thoughts on Verizon’s new pricing plan? Share your thoughts about this story in the Comments section below, via Twitter @dkobialka or email me at [email protected].

Tags: Cloud Service Providers Digital Service Providers MSPs VARs/SIs Channel Research Cloud Mobility

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