Late last month, T-Mobile unveiled its Simple Choice plan and with it brought an end to traditional contracts. Since then, Verizon’s CEO Lowell McAdam has suggested that T-Mobile’s new direction is an interesting one and that Verizon would potentially consider a similar move, at least if there was enough customer interest.
As it turns out, there are at least 60,603 petitioners at the time of this writing that are in fact interested in such a change. The petition was formed about a week and a half ago by Verizon customer Mike Beauchamp, and has since gained quite a bit of traction.
I believe that people should have the freedom of choice ... to move freely between carriers. I think that model where you tie customers in for two or three years is a tired model that doesn't need to exist anymore.Mike Beauchamp
The idea would be to replace Verizon’s traditional contract cycle with a plan where customers would pay upfront for phones, without being locked into a service term. For those that couldn’t afford to pluck down full-price outright, Verizon would hopefully turn to a similar model to T-Mobile, where you pay around $99 upfront and the rest through 24 monthly payments.
How is being stuck with two years worth of payments any different than being stuck with a contract for that amount of time? The biggest difference is that there is no early termination fee for leaving, though you would still be obligated to finish paying off your phone.
No-contract plans could also be very appealing for people who wish to change their phone out every year to keep up with the latest smartphone flagships. These type of users could enter into a payment agreement for a handset and then pay it off a year early in order to move on to a new device.
In short, it is all about having more flexibility as a buyer. In many ways the move could also be good for Verizon. Verizon wouldn’t have to worry about subsidized pricing and instead of an ETF, they would require the person to pay off the remaining balance of the handset purchased.
Now the big question is whether or not Verizon will listen to this petition. It is certainly possible, especially given Verizon’s CEO’s positive comments on the idea. In fact a recent rumor even suggests that Verizon might already be preparing to introduce a device payment plan for those that want to skip the contract. For those that wanted to stick with a contract and subsidized phone, that option would still exist as well.
What do you think of the idea of paying upfront or getting involved with a device payment plan if you can’t afford to pay for the device outright? Is this a better way for a carrier to operate?
Honestly, this sounds like a potential dream come true. I already have to do basically this to keep my current unlimited deal, so adding payment plans only make it more promising.
Is there a link to this petition?
Thank you sir! I’m all over this!
This could work if vzw puts a decent price (very unlikely) on the their plans. Right now if you have a two year contract and a subsidised phone the monthly bill does decreases after the 2 years of service if you decide to keep the same device. Their plans are expensive but where I’m at vzw kicks @$$. Tmobile and Sprint might be cheaper but their quality is not the best….
Cmon folks this is Verizon we are talking about! They may get rid of contracts and hence the subsidy but they sure as hell won’t reduce prices to compensate. To think otherwise is non-reality based.
Leaving Verizon for tmobile doesn’t sound like such a bad idea… If tmobile gets their act together
cut the contract bull. subsidy bull too. when customers can move about with their carrier, competition will raise it’s head and SMASH phone prices. verizon and at&t don’t want to cut contracts for anything. lip service is what they are all about concerning this topic.
plan prices will get SMASHED too.
I sincerely don’t understand how you benefit from that in the States. Here in Canada you can get the Galaxy S3 let’s say on a 2year contract for 100$ and a 60$ Unlimited canada wide calling, international texting and 2Gb of data AND if you wish to cancel your contract, you only pay the balance of the phone. Why would you want to pay 50$+ monthly +20$ for the phone. Let the telecom company subsidize for your phone and the day you wanna change, pay only the balance of it.
It seems like in your case the plan is only $30 and the phone you pay off in $20 installments which means you guys get for $30 what we get for $70 (if on T-mobile).
I would prefer T-Mobile gets all of the customers from Verizon and that T-Mo would therefore grow and have better coverage and be a shining example of a fantastic network…. What happens to Verizon…. I would prefer they didn’t die but if they were severely hurting, I wouldn’t mind. Besides, since Verizon is a CDMA network, people might not be tied to Verizon for two years if they don’t have a contract but it wouldn’t do them much good to leave them because their phone would be worthless.
not going to happen. if you they do eliminate contracts phone prices, accessories, plans, will go up…verizon and att’s motto “there will be only 7 planets left after i’m finished with uranus” lol
Sounds good… I’m sick of theses carriers getting over I’m almost ready to ditch a cell phone altogether
Include interoperability between carriers (Entirely possible with modern phones) and you will really have something. Else, you are still stuck.
i ve already decided to leave verizon for tmobile once the new phones arrive. my note 2 still running 4.1.1, what a joke. i chat with a tmobile rep today and their unlimited plan is awesome, see ya verizon !