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.
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.