Verizon, the United States' biggest wireless provider, will stop offering discounted smartphones after customers sign two-year service contracts. This move to end subsidies could increase the cost of mobile service for some customers, and continues a trend in which wireless carriers have been encouraging customers to pay the full retail price for smartphones, in monthly installments. The company is also offering four collapsed data plans.
All four national wireless carriers are offering huge discounts on smartphones. For example, an Apple iPhone can cost about one-third of the regular price. However Verizon is following T-Mobile in ending price-cuts for new customers.
Sprint offers customers the option to lease phones for a lower monthly fee. However, extra payments are required to keep and resell the device.
Verizon announced that current customers can keep their existing service plans. However, it is not clear which of the restrictions will apply.
The new plans will include data, text, and voice services that will be $20 lower per month in comparison with the subsidized plans, according to Philly. However, the ditched phone subsidies will affect customers' bills differently. The new plans will take effect on August 13, Thursday.
Version is also collapsing its current 15 data plans into four primary options that are like ordering drinks or fries at a fast food restaurant. Their sizes are: small ($30), medium ($45), large ($60), and extra-large ($80), according to Mashable.
Ranges of the plans were previously 0.5 gigabytes (GB) to 12 GB. They will now vary from 1 GB to 12 GB.
Customers will no longer be locked into two-year contracts. However, they might have to stay with Verizon for that time period anyway due to the smartphone monthly installments possibly lasting that long.
There will be wholesale changes for various types of mobile service plans, including those for individuals, couples, and families. There is also the add-on cost of $20 per active mobile device per account.
Verizon's restructured plans are a clear indicator of T-Mobile's increased impact on the telecommunications industry. That includes its "Un-carrier" deals in particular. They have lowered industry prices and propelled it to the no. 3 spot past Sprint in terms of total customers, yet still trailing Verizon and AT&T, respectively.