Verizon Eliminates Two-Year Contracts

Verizon Eliminates 2 Year Contracts

Verizon is following T-Mobile’s footsteps and eliminating its two-year service contracts. The largest wireless company in the US is also doing away with the practice of selling discounted phones. Under the new system, new customers will not be offered two-year contracts but will pay outright for the phones they buy. Clients that cannot pay for the phones will be given the option of fully paying the phones off in interest-free monthly installments.

The cancellation of two-year service contracts by Verizon is a welcome change because with the discounted phones customers paid more for the phones based on the higher monthly fees charged for voice, data and text services. The higher fees continued being charged even after the contract period was over. The contract system used to benefit those that upgraded their phones after the two-year mark even though most people continued to use the old phone hence many kept on incurring expensive charges for longer than necessary.

New Price Plan from Verizon Now in Effect

The elimination of Verizon phone contract system begins on August 13, 2015, and will be replaced by four differently sized data plans based on how customers use their wireless services. The change from Verizon will not only affect new customers, but it will also affect existing customers looking to buy new smartphones from Verizon.

The new pricing plan from Verizon offers $30 per month option for a GB of shareable data and $45 a month for 3 GB of shareable data. Customers that want large packages will pay $ 60 a month for 6 GB of shareable data and $80 GB for 12 GB of shareable data. In addition to these choices on data plans, each smartphone is charged $20 a month. Tablets and Jetpack lines will be charged an additional $10 a month and connected devices such smart watches will be charged $5 a month. The new data plans provide customers with choices as to how they want to use their wireless services. We can only wait and see how this new arrangement from Verizon pans out.

Verizon Eliminates Two-Year Contracts

Here’s how you can save money with Verizon’s new plans

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