Is there any point in renewing my contract?

[JeffMerr]

It's been a couple years since I purchased a phone. When I look at the Verizon website and their new plans, it looks like all they do now is just divide the full retail cost of a phone by 24 months (2 year contract) and add it to your bill each month. When I purchased my last phone I think I paid $100 for the phone (instead of $500-600 retail) if I renewed my 2 year contract.

I don't really understand the point of renewing my contract with this new plan structure. Why wouldn't I just purchase a newer phone on sale somewhere for cheaper and just activate it? Am I missing something here? Where did the perks of renewing your plan go?

 

[krisguy]

By the wayside.

Phones have become too expensive for carriers to subsidize and account for their costs in the plan structures. So the new plan structures were born. With the new rates in play, it is better to buy your phone on installment or get it somewhere else and bring it in. VZW is one of the ones that is very strict about bringing in other devices, so check with them before buying a phone.

 

[JeffMerr]

I see. So how are they getting people to renew/sign contracts if that's the case? I can't see any reason to lock myself in for 2 years if I'm just paying retail for a phone and not getting anything out of it.

 

[SandersJC1964]

I see. So how are they getting people to renew/sign contracts if that's the case? I can't see any reason to lock myself in for 2 years if I'm just paying retail for a phone and not getting anything out of it.

A device payment plan is a 0% interest financing on a new device. The agreement spans 24 months, but at any time you are free to pay the balance off and the monthly payment will go away. When on a device payment plan, your line access fee for a smartphone is $20 as opposed to the $40 line access fee on a subsidized two-year contract device. If you bring your own device onto a new plan, the line access fee is also $20. So really, unless you are still on a plan that has the subsidized prices and two-year contract options available, you aren't technically "locked" into anything for two years; you have an option of buying the phone out early.

 

[dpham00]

What plan are you on now? If you are on some old plans where the line access doesn't change regardless of on or off contract then it makes sense to do a 2 year service contract. On current plans the difference isn't much as they increase the line access charge for the duration of the contract

 

[pbike908]

If you are by yourself -- meaning not on a family plan or you don't receive a Verizon discount through work - checkout Verizon Prepaid. Only thing you don't currently get is voLTE which isn't a big deal unless you want WIFI calling. And Verizon says that voLTE will be coming to Prepaid this Fall.

One can replace Visual voice mail with Google's Voice mail -- which is what I have done.

 

[JeffMerr]

I am on a family plan with my wife. We share 3gb a month and I do get a discount due to my job. Thanks for the tips though.

 

[sulla1965]

If you are by yourself -- meaning not on a family plan or you don't receive a Verizon discount through work - checkout Verizon Prepaid. Only thing you don't currently get is voLTE which isn't a big deal unless you want WIFI calling. And Verizon says that voLTE will be coming to Prepaid this Fall.

One can replace Visual voice mail with Google's Voice mail -- which is what I have done.

Verizon prepaid now comes with voLTE

 

[pbike908]

Verizon prepaid now comes with voLTE

Actually they announced it but it was premature as they took the page down. voLTE is coming soon to prepaid ...

 

[mike568]

A device payment plan is a 0% interest financing on a new device. The agreement spans 24 months, but at any time you are free to pay the balance off and the monthly payment will go away. When on a device payment plan, your line access fee for a smartphone is $20 as opposed to the $40 line access fee on a subsidized two-year contract device. If you bring your own device onto a new plan, the line access fee is also $20. So really, unless you are still on a plan that has the subsidized prices and two-year contract options available, you aren't technically "locked" into anything for two years; you have an option of buying the phone out early.

You are never "locked" into a 2 year contract. You could always leave and pay the ETF which lowers with each month of service. On ATT they offered to let me pay the ETF to unlock my phone from the network and keep the plan the same. I of course didn't pay the ETF to unlock MY phone instead I used a glitch in the unlock request website and got it unlocked.

 

[cbreze]

The increase in the line access fee is enough to keep me from renewing. They act like they don't want you in contract.

 

[dpham00]

The increase in the line access fee is enough to keep me from renewing. They act like they don't want you in contract.

They want you on contract, they just don't want to have to subsidize your phone for free

 

[dpham00]

You are never "locked" into a 2 year contract. You could always leave and pay the ETF which lowers with each month of service. On ATT they offered to let me pay the ETF to unlock my phone from the network and keep the plan the same. I of course didn't pay the ETF to unlock MY phone instead I used a glitch in the unlock request website and got it unlocked.

On Verizon, it stays at $350 for the first 6 months if you did a subsidized contract recently

 

[cbreze]

They want you on contract, they just don't want to have to subsidize your phone for free

Sure, but seems a sneaky way to do it. So they don't want to subsidize they charge you a bogus fee that has nothing to do with anything. I wonder how many people never notice it? Why not call it a subsidization charge or something? That'd be more upfront.

 

[dpham00]

Sure, but seems a sneaky way to do it. So they don't want to subsidize they charge you a bogus fee that has nothing to do with anything. I wonder how many people never notice it? Why not call it a subsidization charge or something? That'd be more upfront.

It ends up being about the same... $200 phone cost +$20x$24 vs full retail divided by 24. Depending on the promotion, one could be slightly better than the other

 

[cbreze]

It ends up being about the same... $200 phone cost +$20x$24 vs full retail divided by 24. Depending on the promotion, one could be slightly better than the other

I know and the math generally works out. People on the forum are pretty savvy to this, but the rest of the population was who I was considering. I know people who totally depend on reps to give them the straight scoop. I also have heard countless stories about others who had the charge added and not explained what it was. That's what I meant by sneaky. In any case, it is what it is. Just another instance of the buyer needing to beware.

 

[dpham00]

I know and the math generally works out. People on the forum are pretty savvy to this, but the rest of the population was who I was considering. I know people who totally depend on reps to give them the straight scoop. I also have heard countless stories about others who had the charge added and not explained what it was. That's what I meant by sneaky. In any case, it is what it is. Just another instance of the buyer needing to beware.

Absolutely. There are many dishonest sales people, from Verizon and otherwise... You really need to do your own research... Otherwise... There is a good chance you will be fleeced.

I went to att to get a prepaid plan... The rep insisted that the cheapest prepaid option is $45/mo with data... I said but he website says different,insisting that he was right. So I pulled up my phone and showed him the plan i wanted... He said oh... Sure I can get you that plan. But for the common customer.... They wouldn't go that far. Anyway I have tons of stories but... You get the point