04/09/2011 03:20 pm ET | Updated Jun 08, 2011

Verizon Cuts One-Year Contract Option

Beginning April 17, Verizon Wireless will stop offering single-year contracts for new mobile customers.

Current yearlong subscribers will not immediately be affected, a Verizon rep told Computerworld.

When existing one-year contracts expire, however, those customers will have a choice between Big Red's two-year and month-to-month options.

According to an internal memo, published by Gadget University, Verizon is cancelling its yearly contract offering because of low demand from non-business customers.

"The greater majority of customers sign up for a two-year contract and take advantage of the discounted promotion price," Verizon explained to Computerworld.

There is one exception to Verizon's new policy: business and government accounts will still have the option of selecting yearlong plans.