Why Verizon’s move to axe two-year contracts was the perfect idea

Why Verizon’s move to axe two-year contracts was the perfect idea

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In an effort to compete with T-Mobiles Un-Carrier moves, Verizon decided to do something that is quite Un-Carrier like. VZW has decided to get rid of two year contracts. For those who are pulling their hair out should actually rejoice over the move.


AT&T and T-Mobile has already made the moves from contracts to month to month plans. Now VZW is moving towards the idea. Gone are the single line plans. Why? Because it’s all about the data. Users will have to first pay for their access line fees, which are down for the most part, but the fees for the data is slightly up (So don’t go thinking you’re about to save anything).

Adding phone access will cost you $20 every month per line. If you want a tablet or hotspot, it will cost you $10 per month. For any smartwatch, it will cost you $5, which in my opinion is quite petty, but we will let it slide for now.

The data bucket will include four options; 1GB, 3GB, 6GB, or 12GB of shared data. The latter will cost $30, $45, $60, and $80 per month respectively. For those who don’t use as much data like single lines, 1-3 GB will be rather appealing. 6-12 GB of shared data will most likely be for a family.

We knew contracts were eventually going to be a thing of the past. T-Mobile started this two years ago with their JUMP plans. This is good for the consumer because there is much more transparency. Two year agreements were always higher than month to month plans, and ended up forcing the customer to pay more for their phones over the two year course. This shift will however come with a caveat as there will no longer be deals for phones from carriers. Customers will now either have to pay full price for their device, or split the cost over a two year course. This means that phone subsidies has now turned into car financing.