T-Mobile started shaking up the smartphone market by offering no contract deals for its customers, along with monthly payment plans for new phones instead of the traditional subsidized pricing we’ve dealt with for years.
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This will be better in the long run. Here’s the rub: You keep paying those higher fees even after your contract is over. Verizon’s new strategy is to focus, apparently, on promoting just four choices with varying degrees of data included.
The new Verizon data plans are four in number and don’t include family plans or the possibility of taking a single line. Verizon Communications Inc. (NYSE:VZ)’s showed weekly performance of -0.92%. Other larger plans exist, but will require you to ask Verizon directly for a quote.
That said, there’s been speculation that Apple and Samsung will come out with new models soon. The old system involved a lot of variables and it was hard to calculate what the actual price would be. If you sign a contract, you can buy a new iPhone for around $200.
The news plans will take effect on the 13th of August and will reduce prices for data, text and voice services by around $ 20 per month.
There are variations, though.
The data can be shared between as many as 10 devices, but customers must pay a flat monthly fee for each mobile device connected to the plan. An hour or two will eat up your allotment.
Under the new plans, that couple will pay $85 for 3 gigabytes (a price cut) and $100 for 6 gigabytes (a price decrease from subsidized rates, but no change for others).
Customers needing more data will be forced to venture to a Verizon Wireless store. For 3GB in a month, the cost is $45. What do you think of the new switch by Verizon?
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Since contracts aren’t there anymore, customers can now choose to switch between plans easily which is quite beneficial for users looking for flexibility when it comes to choosing services. Many consumers used to opt for low upfront payment and the telecom companies were binding them with two-year contract to recover the cost of the phone. Without the contract the phone would cost in between $600-$700. That’s another change T-Mobile introduced, and AT&T later followed with its Next plan. With installment option, Verizon will still retain a consumer for a period of two years (on an average) or the installment tenure. Verizon and T-Mobile, who are the top two providers, are both ending subsidies.
