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.

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It's not a problem. Their other options are fine.

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Comments

[Z-Liberator]

09:11 PM on 04/11/2011

The Republican Way, The least options the better.

[JimShanor]

06:16 PM on 04/11/2011

In the old days, monopolies were seen as sinister by the political and regulatory world. Now they are seen as easy money for future political campaigns. This skews whatever is really "good" about Capitalism. Time to bust up the Biggies in Communications, Agriculture, Energy Companies, and Banking/Insurance.

[netzwerg]

12:28 PM on 04/11/2011

"Now, I'd like to know if I could buy a great phone that doesn't have anyone's code (or whatever it is) on it so that I could actually switch from company to company on a month-to-m­onth basis if I wanted."

You can buy unlocked phones at some online shop (i.e. http://www.mobilejoker.de/handys/blackberry.htm ) or a phone shop in the city and go to the provider you choose.
At least that's how it works in Europe.

I know that in the US most phones are exclusive to some provider, but I am sure you have a market for unlocked phones too in the US.

[slackbatter]

11:25 AM on 04/11/2011

I wish the sprint network was better around my town so I could switch to CREDO.

[netzwerg]

10:14 AM on 04/11/2011

"Apple was allegedly working on an iPhone that could be used on any network of the customer's choosing."

The normal, standard iPhone does just that. Just buy it off contract in the Apple shop ( http://store.apple.com/de/browse/home/shop_iphone/family/iphone?mco=MTAyNTQzMjI ) or anywhere else and use the cell phone provider of your choice.

I think they don't sell it in America this way though.

[RINOVirus]

10:09 AM on 04/11/2011

That's Free Market America, giving you less choice.

[RABSR]

03:45 PM on 04/11/2011

“That's Free Market America, giving you less choice.”

A “Free Market” does not dictate a company’s pricing decisions.

The Market does.

If the Market wants one-year contracts, it will move to other providers who offer it.

That’s how it is supposed to work.

[RINOVirus]

04:03 PM on 04/11/2011

Say that when your cell phone bill is raised for no reason. Or how they can dictate that I pay $20 a month for tethering on a phone that I own and using bandwidth I pay for.

Yet another corporate apologist.

[netzwerg]

09:52 AM on 04/11/2011

Don't you have 1 month contracts in America?

They're great here in Europe, if some cellphone provider makes a better offer, just change the next month.
Keeps the prices down and the competition up.

[beherenow54]

10:21 AM on 04/11/2011

Well, we have month-to-month contracts but they cost much more. The very sad other thing is, at least from what I've always found, that you can't transfer your phone from one company to another. They have company codes on them that ensure they work with only that company. Now, I'd like to know if I could buy a great phone that doesn't have anyone's code (or whatever it is) on it so that I could actually switch from company to company on a month-to-month basis if I wanted. It's the way it should be. You don't live in corporate-controlled America, fortunately for you.

[gemini68]

10:44 AM on 04/11/2011

Actually most month-to-months plans cost less than the average contract plan. I was using AT & T Go Plan for many years and was paying only around $55 every month. It was only when I decided that I wanted a smartphone that I switched to a two- year contract plan.

[rezna]

11:33 AM on 04/11/2011

The reason they have a 2 year contract and other options is to make up for the huge price break they're giving you on your phone. I had to get a 2 year contract for my iPhone because they gave me a $400 discount. They are getting that $400 back through me dedicating 2 years of business to them.

[StuffMoreStuff]

11:33 AM on 04/11/2011

No the mobile market is quite different in US. Personally, when my ATT contract expires I am going to virgin. I am sick of the contracts and high prices.

[pepimartinez]

09:18 AM on 04/11/2011

It's only a matter of time until they start changing those "unlimited" data plans to have a specific amount of data you can download/use until you start paying more.

[The Dude67]

08:52 AM on 04/11/2011

Who cares?  In a couple of years there will only be AT&T and then you can choose between their "plan" or no cell phone.

[jones]

10:26 AM on 04/11/2011

It seems to me I remember my high school teacher telling me about the railroad barons in the 1800's and how they set prices (high prices) and all kinds of rules.......then along came "EL CARRO!!!"

[JtownesquireAgain]

08:32 AM on 04/11/2011

one year...two year...what difference does it make? It's not like a majority of people ever comparison shop their cell phone service or try to negotiate with the provider anyway. Eitehr sign up for 2 years or stay month to month.

[Ramon Moreno]

04:54 PM on 04/11/2011

I did the two-year when I got my EVO. Suddenly I'm 10 months into it. I've had the same provider since 2000, so I figured if I lived, no big deal, and if I died, no big deal. It goes to show how short-term most people's thinking is.

[JustBNice]

08:14 AM on 04/11/2011

Our household is looking into Credo mobile.

They support progressive causes.

[DannyEVillage]

08:19 AM on 04/11/2011

I made the move. They'll even pay to break your existing wireless contract.

[jones]

10:27 AM on 04/11/2011

Thanks... I'll look into it.

[DannyEVillage]

08:18 AM on 04/11/2011

F&F!

[ABXNOMORE]

08:24 AM on 04/11/2011

My cell phone worked better in Europe in different three countries I visited in 2002 than it did in the U.S. In fact, in the U.S., I had T mobile at the time because they offered SIM cards, there were many places where I could not get reception but never had a problem in Europe.

[quindy]

08:27 AM on 04/11/2011

Thank you. Already your fan.

Another thing we cannot do with our cell phones is travel abroad unless we pay for another expensive "plan" (the plan to take more from us and give less). The rest of the world can. I am so sick of this bare bones, unregulated capitalism. Few rules and a dose of decency would go a long way.

[ilovedessert]

08:08 AM on 04/11/2011

If you think this is bad, wait until the AT&T/T-Mobile merger goes thru.

In Canada, they HAD 2 large cell providers and two smaller ones, much as we do here in the USA....after one large on gobbled up a smaller one, the prices for service shot up....

Also one of the large companies Rogers, wants you to only get a new phone every THREE years, (from what I understand the 3 year issue isn't yet manditory)....

I don't mind spending more for a phone and only having it for one year...then why should they care?

It will only get worse if the AT&T/T-Mobile merger takes place!

[DannyEVillage]

08:19 AM on 04/11/2011

As soon as I heard, I left T-Mobile for Credo.

[howiseveryone]

09:29 AM on 04/11/2011

what is credo and where can you get it

[argyle]

08:00 AM on 04/11/2011

It's time to end the for profit model when it comes to telephone service.

[quindy]

08:31 AM on 04/11/2011

They can have their profits, but they should provide service like Europe and Asia do. You need only one phone to travel all over the world, you don't need to sign for any plan and you still pay less than we do. I am paying $5/month extra just for 911 calls that, so far, I've never used. Why is that even legal?

[UnknownSolider]

10:26 AM on 04/11/2011

the 911 infrastructure has to be paid for, just for that 1 time you will need it

[The Dude67]

08:55 AM on 04/11/2011

Nothing wrong with a profit model here.  What's wrong is getting rid of the competition.  It's the same for supermarkets, oil companies, banks, etc.  They buy up the competition then stick it to the consumer because they are left with little or no choice.

[rickwar]

07:58 AM on 04/11/2011

If you happen to live in an area serviced by US Cellular there is no contract after the first 2 year contract (one and done) Also if you are in a current plan you can change to the new plan and have as little as one month left on your old contract and your done.

And you still get the discounted equpment pricing, points every month nationwide service, nights and weekends free, mobile to mobile.

Also rated best by consumer reports and JD Power--only downside is they are regional.

[UnknownSolider]

10:27 AM on 04/11/2011

regional is the way all cell phone carriers should be, makes upgrades to the network a lot easier

[quindy]

04:46 PM on 04/11/2011

And what do we do when we travel abroad? So far, none of the carriers provides phones with chip cards that can be used abroad. One always needs a special plan.