Verizon today announced that the company will be introducing a new set of smartphone rate plans for its customers while simultaneously eliminating the traditional subsidized two-year contract option for new users joining the network. The new plans come in four sizes of data allotments, and will go into effect officially on August 13.

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Once customers choose the smartphone they want to pay for on its own monthly cost, they will then choose which data option they need for their plan. The new plans are going to apply to both single lines but can also be shared with up to ten devices on one plan. Verizon likens the new plan options as a simplified version of its former offerings.

Many things in our lives come in familiar sizes. Morning coffee? A medium, please. New t-shirt? That’s a large – at least for now. From small to XL, everyone understands these common sizing options.

Beginning August 13, our newest price plan will offer four easy sizes of data to match how our customers use wireless service. These new data options come in sizes just like other things we buy:

-Small: $30/month for 1GB of shareable data

-Medium: $45/month for 3GB of shareable data

-Large: $60/month for 6GB of shareable data

-X-Large: $80/month for 12GB of shareable data

With the new plan structure, monthly device access charges will be priced at $20 for smartphones, $10 for tablets and Jetpack MiFis, and $5 for "connected device lines" such as smart watches. These device access charges are, of course, in addition to one of the four data options each customer will pick and any financed cost for the devices themselves. Verizon hopes that the new offerings will result in "a simpler and more streamlined bill" for its customers in the future.

New customers will have to choose between paying the full device cost up front or using interest-free financing to spread the costs out over 24 months, as subsidized pricing with a two-year contract will no longer be available to new customers. Existing customers will be able to move to the plans or retain their existing plans, with some restrictions that have yet to be detailed.

Tag: Verizon

Top Rated Comments

Waxhead138 Avatar
114 months ago
I pay $140 for 5 lines on T-Mobile and each line has 10 GB. EACH. Thanks T-Mobile

Be thankful you're in an area where T-Mob works consistently. Not being a smart ass either...the way this industry has and always will work is that if the network sucks (on a national level I mean) you'll get a ton for your money.....where it happens to work.
Score: 24 Votes (Like | Disagree)
Klae17 Avatar
114 months ago
I pay $140 for 5 lines on T-Mobile and each line has 10 GB. EACH. Thanks T-Mobile
Score: 16 Votes (Like | Disagree)
BanterClaus Avatar
114 months ago
What the hell. I pay £12 a month (monthly, no contract) for unlimited 4G data here in the UK. Those prices seem absolutely obscene.
Score: 15 Votes (Like | Disagree)
John.B Avatar
114 months ago
This was a long time in coming. So many people didn't understand the "subsidized" pricing model and continued to use their smartphones after 24 months not realizing they were continuing to pay for subsidies with no benefit. Not all, but many, I'm sure.

Better to break out the phone and service costs separately, which allows consumers to see the differences and be more informed shoppers.
Score: 14 Votes (Like | Disagree)
Chuck Kostalnick Avatar
114 months ago
Read this and thought it was a joke. I was right.
Score: 9 Votes (Like | Disagree)
nutmac Avatar
114 months ago
I pay $140 for 5 lines on T-Mobile and each line has 10 GB. EACH. Thanks T-Mobile
I switched from AT&T to T-Mobile last year and while I agree T-Mobile is a bargain, you get what you pay for. While the coverage is decent where I live (Silicon Valley), indoor coverage is often lacking and rural coverage (e.g., weekend road trips) is often horrible. And their billing system is really third class. Out of about 16 months I have been on T-Mobile, at least half had billing errors.

I strongly suspect that when and if T-Mobile catches up to competitor in terms of coverage, you will be paying substantially more (at least for new customers).

Having said all that, T-Mobile is single handedly responsible for driving down prices (or sweetening the deals) of competitors.
Score: 8 Votes (Like | Disagree)

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