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Verizon Confirms Edge Upgrade Plan For August

By - Source: Verizon | B 8 comments

Verizon Wireless will not be outdone.

After Verizon reported double-digit earnings growth in 2Q 2013, the company confirmed on Thursday that it's launching Verizon Edge next month, a plan that will allow customers to upgrade their phone after 50 percent of the current device is paid off. The confirmation was made by Verizon Communications CEO Fran Shammo during a conference call with analysts after the 2Q 2013 results were released.

"We have a lot of customers in the technology edge that want to upgrade sooner than they would under our historical, legacy, subsidy model, if you will. And we have other customers who don't want to pay upfront for the large cost of the phone," Shammo told analysts.

Agreed. Many customers don't want to carry old devices around like a ball-and-chain, present company included, over a two-year span. The progression of smartphone technology has gotten to the point that new smartphones are seemingly outdated within months. Still, many customers are okay with that, and just don't really care about keeping up with the latest.

Verizon Wireless also confirmed the Edge plan in a blog published on Thursday morning. According to the post, customers can choose the phone they want and sign up for a month-to-month wireless service plan. The full retail price of the device will be divided up over 24 months, and customers will be required to pay the first month at the time of purchase.

To upgrade after six months, 50 percent of the full retail price will need to be paid off. Thus, customers can choose a new phone and start all over again. "There are no long-term service contracts, finance charges or upgrade fees with Verizon Edge," the company said. "Every six months, as long as 50 percent of the cost of the phone has been paid, you can upgrade to the newest basic or smartphone available."

Notice there's no extra monthly subscription fee for the right to upgrade every six months – T-Mobile charges $10 per month. Verizon also covers both standard phones and smartphones, and it's even ahead of the game in regards to LTE coverage: 500 markets compared to AT&T (328) and T-Mobile (110). Verizon also doesn’t require an additional down payment.

According to AllThingsD, the remaining balance of the phone is waived once it's traded in for the upgrade, and is in working condition. As an example, customers wanting the Samsung Galaxy S4 with 16 GB of storage, a $650 purchase, will be required to pay just over $27 per month for 24 months. To upgrade in six months, customers will need to pay $54.17 per month to reach the $325 requirement, half the retail price. Thus, the remaining $325 is waived and the process begins again.

Remember that the device payment is in addition to the required Share Everything plan which starts at $40 per month. This allows family members to share unlimited calls, unlimited texts, and a set pool of data. Customers who participate in Verizon Edge and still retain their unlimited data from older plans will be forced to use the new data pool scheme (it's not bad actually).

"We’ll continue to offer phones on contract for customers. We think that will continue for a long time, and that’s what customers have gravitated toward," said Ken Dixon, vice president and chief marketing officer at Verizon. "But Verizon Edge is the next evolution of our program. We have many people coming in saying they want the latest and greatest in technology, and we think this a great option for those customers."

Just this week, AT&T jumped on the early upgrade bandwagon with its Next plan. This allows subscribers to upgrade their phone every 12 months based on a 20-month payment cycle without the need for a monthly fee or down payment. T-Mobile's Jump program allows upgrades up to every six months for a $10 fee, but requires an initial down payment on the device.

Verizon Edge will be available to customers on Share Everything plans starting August 25th.

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  • 2 Hide
    Seriously Casual , July 18, 2013 4:58 PM
    The pooled data plan is not that bad? Actually, it is. It seems as though anyone I know who has that plan wants unlimited data. I must say that I'm pretty confident that I'd rather keep my unlimited data as well.
  • 4 Hide
    Blessedman , July 18, 2013 7:12 PM
    Here is the problem I have with Verizon: They will stretch the price of a new phone over a two year period. If however you don't upgrade your phone after the two years, do they lower the price knocking off the cost of the phone from your bill? NO! Thieves!!
  • -2 Hide
    otacon72 , July 18, 2013 9:14 PM
    @Seriously Casual In order to do that you have to pay full retail price upfront.

    @Blessedman No company does that...get a clue.
  • Display all 8 comments.
  • 1 Hide
    joescalon , July 18, 2013 10:16 PM
    @otacon72 actually t mobile averages about 20 cheaper a month for unlimited everything if you aren't paying for a phone...
  • 0 Hide
    williamf3000 , July 19, 2013 12:41 AM
    I switched to Verizon as soon as the iPhone 5 came out. With this new plan, will I be able to upgrade to the 5S (or whatever they call it) for just the upgrade price? If so, that is outstanding!
  • 2 Hide
    joebob2000 , July 19, 2013 7:29 AM
    Who the hell would find that a good idea? Paying an extra 54.17 *per month* for the privilege of borrowing (not buying) the phone for 6 months? The Tmobile idea seemed OK since they are a cut rate provider. The AT&T plan seemed like a stretch since it offered a trade in only after 12 out of 20 payments (60% for those playing along at home) but this plan is just nuts when you are basically paying the same base rate you used to (when they were subsidizing the phone) and now on TOP of that you are paying for the phone. The money grab is as blatant as it is appalling. I am keeping my old-ass Galaxy S3 on VZW until the wheels fall off. Then, once all my Verizon contracts are out (i have 3 lines) we are all switching to a MVNO. They can keep their gloriously fast, omnipresent 4G. Give me a rate structure that makes sense.
  • 0 Hide
    subaru41 , July 19, 2013 7:58 AM
    Just anoter gimmick to try and pull people away from their unlimited data plan.
  • 0 Hide
    basketcase87 , July 19, 2013 11:15 AM
    "We’ll continue to offer phones on contract for customers. We think that will continue for a long time, and that’s what customers have gravitated toward," said Ken Dixon

    Yeah, because you don't offer any savings for potential non-contract customers, so they go elsewhere. Thanks Captain Obvious.
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