Verizon to offer contract-free postpaid plans?
By Chris Ziegler 
posted Sep 17th 2008 3:12PM
posted Sep 17th 2008 3:12PM
There's a rumor going around that Verizon is on the cusp of announcing that customers bringing their own equipment to the table (they are doing that whole open network thing, after all) or who are willing to pay full price for their goods up front will be able to go contract-free on postpaid accounts. There'll still be an activation fee and a credit check since we're still talking about a postpaid setup, but you'll have the freedom to walk away or upgrade hardware at any time your carefree heart desires without dealing with an ETF or a pesky contract extension. If this all goes down -- which it probably will, assuming Verizon's interested in keeping up with the industry trend here -- word is we can expect an announcement on the 21st of the month.
I'm not a big fan of Verizon but bravo to them if they start the whole no contract postpaid deal off, I just hope a GSM carrier follows suite.
AT&T already does this.
I work for Verizon Wireless and it's true. Effective 09/21/08, a Month to Month Agreement option will be available for customers that pay full retail price for a device or provide their own device. This option allows customers to activate service and upgrade devices without a 1 or 2-year agreement. MTM customers can terminate their service at any time (effective on their next bill cycle date) without incurring an early termination fee. Customer credit checks apply.
I'd be curious what the pricing would be for these plans. Would they keep them the same or charge more for the uncertainty of keeping the customer?
@CB17,
"AT&T already does this." uhh, no they do not. There's not one wireless provider who does this in the U.S. for a regular postpaid account, except for Metropcs, but they don't count.
Uhh, yes they do. You just have to ask for it.
Most reps are unaware they get paid commission on it, and those that do know that commissions on month to month contracts considered 'at risk' for 6 months. That's why it usually isn't offered during the transaction and is also why ignorant people don't think it exists.
I've sold it to several people who already had a phone or didn't want a contract but were willing to pay full retail for the device.
US Cellular does, you can bring your own USCC phone or pay full retail and go month to month.
I am pretty sure t-mobile will give you a SIM card month to month.
Why don't you STFU before you let crap spill out of your mouth. I'm ON THE PLAN. How you gonna tell me what kind of plan I have?
Yes. T-Mobile has been doing this for a while.
These plans better be cheaper since Verizon Wireless isn't subsiding the cost of the device.
true, didn't even think of that point that you bring up. However, those added savings are probably somewhat offset that the uncertainty of losing a customer will put more strain on the MTM contract. Therefore, I would suggest that Verizon give termination credits like normal phone companies do - if a customer says, "do something better for me or I'm leaving," the MTM price could be reduced in exchange for keeping that customer. Or free schwag or some kind of retaining incentive. I have free DISH Network for a year (plus doubled my DSL speed and took $5 off the price of the DSL) because I told Embarq I was leaving for Comcast for phone and internet only unless they gave me a better deal. I just had OTA before that so yeah. It really is that easy.
The price of the device has nothing to do with the cost of whatever plan you chose.
Phones are subsidized in exchange for a contract.
If you don't want a contract, you can pay 'retail' price for the phone. Or, you can get a VZW phone cheaper elsewhere and have it activated with no contract.
VZW is def behind the times on this one, but it doesn't make a difference right now since their CDMA crap isn't compatible with superior GSM. But once LTE (4G) is the standard you will be able to move between VZW, AT&T, TMO without a problem (provided it's an unlocked phone).
(/wireless technology lesson)
The GSM buzz is enough for me to call GSM crap. But that doesn't really matter. If AT&T and TMo actually dumped money into improving their networks, they'd be able to hang with Verizon's CDMA.
I bring up the lower price because in the past, IIRC, providers said that they want to lock people into contracts because they need to make their money back from subsidizing the cost of the device. No contract, no subsidizing the price of a device should equal to a lower monthly cost, unless their excuse was just BS.
The plans stay the same, in reality it's a sound business choice.
the phone no longer will cost them anything in subsidizing(I htink they had a figure in the billions of lost money to phone subsidies), and they make profit right away. frankly I am amazed the big red money machine that is verizon wireless didn't think of this sooner.
and no, the plans will not be cheaper, if you want cheaper plans, go sign up with sprint, and cross yrou fingers it works half the time. I understand yrou point that the plans are a price to make up for subsidizing phones, however there is no reason for the big red to lower the price. people will not think that the plan should be lower, people will think this is a good thing, and the masses are dumb..this is not news. and why would they? because some loser on engadget mobile thinks they are overpriced? please...let me hold back the press core.
Last fall, right before the 700 MHz auction went down, VZW said they were going to open up their networks to outside devices. While there doesn't seem to have been significant motion on this, that I've seen, one might see this as the first step to that opening. I don't know if they have finalized the testing structure they were discussing last fall but it seems like this is the logical starting point. Who would bring their own phone to be locked into a contract?
So does this mean you can use any phone (meaning any phone that works for a verizon account or has a card) with verizon now?