Verizon wants you to buy your phone up front

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Verizon has announced that it will do away with contracts on August 13, allowing consumers to purchase smartphones up front.
By Aaron Sims | Nov 09, 2015
Verizon Wirelessannounced this week that it will changethe way customerspay for wireless service forever. According to a report from CNET, the telecom giant revealed on Friday it will roll outa new setof data plans that allow customers to buytheir smartphone in installments or up front instead of signing a contract with a discount on the device.

The new data plans will becomeavailableon August 13, and represent a dramaticshiftfrom Verizon's traditionalstructure of smartphone subsidies and contracts. Customers have shown that they are more willingto pay for their devices up frontin exchangefor lower service charges, and wireless companies are starting to listen. T-Mobile was the first major company to do away with contractstwo years ago.

Under the new setup, there will be no more family plans or single-line options. Verizon will offerfour packages with different amountsof data, but all plans come standard with unlimited voice and text messaging. Data plans will span from 1 gigabyte of data for $30 permonth to 12 gigabytes for $80 permonth.

With no contracts,it's easier for consumers to switch between plans each month.Verizon aims to keep loyal customers by offering plans that suit their data needs, but many have raised questions about the new pricing structure.

Analysts find it strangethat Verizon's plans would plateauat 12 GB. This maydiscourage customers that use a lot of datafrom purchasing a phone with Verizon.Users that need lessdata will also probably see a bump in their rates. Verizon knows that the plan is ambitious, and they plan on monitoring sales closely to adjust prices to best fit consumers' needs.


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