Verizon may debut more frequent device upgrades with supposed 'VZ Edge' no-contract plan
A purportedly leaked training document from Verizon reveals America's No. 1 cellular carrier may debut an enhanced subscriber plan dubbed "VZ Edge," which will shorten the period customers have to wait between device upgrades.
Source: Droid Life
The document, entitled "VZ Edge Strategy," outlines a no-contract payment plan that breaks up a smartphone's initial cost into monthly installments, but still allows customers to upgrade to a newer model after 50 percent of the device is paid off, reports Droid Life. If the training guide is legitimate, Verizon is planning to launch VZ Edge by August 25.
As seen above, the plan could lower upfront costs for users wanting the latest technology, which is usually the most expensive, while negating upgrade fees and keeping the agreement pre-paid.
VZ Edge looks to be very similar to T-Mobile's recently announced "Jump" program, which affords customers two upgrades each year for $10 per month. Basically, users are able to pay the same subsidized device price as a new customer, but skip the usual upgrade eligibility cycle by paying a monthly fee.
Telecoms are looking for new ways to generate churn for costly smartphones and attached data plans, with many moving away from the traditional subscription model. It was T-Mobile that unveiled a no-contract iPhone plan alongside the "Uncarrier" initiative in March. Under that deal, customers pay an upfront fee of $99 for a 16GB iPhone 5, with the remaining cost of the handset spread out over 20 additional monthly payments of $20.
Source: Droid Life
The document, entitled "VZ Edge Strategy," outlines a no-contract payment plan that breaks up a smartphone's initial cost into monthly installments, but still allows customers to upgrade to a newer model after 50 percent of the device is paid off, reports Droid Life. If the training guide is legitimate, Verizon is planning to launch VZ Edge by August 25.
As seen above, the plan could lower upfront costs for users wanting the latest technology, which is usually the most expensive, while negating upgrade fees and keeping the agreement pre-paid.
VZ Edge looks to be very similar to T-Mobile's recently announced "Jump" program, which affords customers two upgrades each year for $10 per month. Basically, users are able to pay the same subsidized device price as a new customer, but skip the usual upgrade eligibility cycle by paying a monthly fee.
Telecoms are looking for new ways to generate churn for costly smartphones and attached data plans, with many moving away from the traditional subscription model. It was T-Mobile that unveiled a no-contract iPhone plan alongside the "Uncarrier" initiative in March. Under that deal, customers pay an upfront fee of $99 for a 16GB iPhone 5, with the remaining cost of the handset spread out over 20 additional monthly payments of $20.
Comments
Except that it's just like T-Mobile and not Sprint. Try reading the article it said so right in it.
New iPhones every year now?
Or will this just be for crappy GoogleAndroid phones that you get with a free suit?
Leisure suit, Larry
Quote:
Originally Posted by AppleZilla
New iPhones every year now?
Or will this just be for crappy GoogleAndroid phones that you get with a free suit?
If this is the real deal, you'll be able to get your new iPhone as soon as you pay off half of your old one.
What if they don't release the next iPhone in exactly one year?
Although all of the details for the Verizon VZ Edge plan has not been revealed yet, is there any information about how many times a Verizon subscriber can upgrade their device? Is it only limited to phones? AT&T's "'Next' plan" allows their subscribers to upgrade their devices every 12 months; T-Mobile allows 2 upgrades/year - their customers can start upgrading after being enrolled in the program for 6 months; and Sprint, as of now, has only reduced the price of their plans and guarantees their subscribers unlimited data for life. If Verizon does not put a cap on how many times their subscriber can upgrade their device, then this by far is the best plan because some customers are able to pay 50% or more of their device within 6 months.
Why would he bother? It is more important to be first and to be obnoxious than to be insightful.
Quote:
Originally Posted by Tallest Skil
OH LOOK. MORE FREQUENT DEVICE UPDATES. JUST LIKE SPRINT. HOW ABOUT THAT.
Like who????
Quote:
Originally Posted by brutus009
What if they don't release the next iPhone in exactly one year?
You'll be less screwed than two years but more screwed than one?
So before, you had a subsidized plan with a $200 up front and a $250 early termination fee. ($450)
Now you still have a subsidized plan, but pay $99 up front, and $20 a month. ($339) And you're still paying a subsidy on your data plan. And you turn in your old phone.
Of course, before you could "flip" your phone for, say, $250, which wiped the termination fee. Then, of course, you'd have to spend $500 to buy the unsubsidized phone, but on the next cycle there would have been no termination fee, you could again sell your own phone, and you'd qualify once again for the subsidy.
So at the end of 4 years on then subsidy/buy outright/subsidy/buy outright cycle, you'd be out of pocket $1,110.
On the buy outright/sell/buy outright/sell cycle, you'd have paid $1,250 by the end of the same period.
Under the new plan, you'd have paid $340 a year, every year, or $1,360.
Yep. It'a a bargin for the consumer all right.