Device upgrade

[DhK2015_]

my husbands phone had been eligible for an upgrade for a while but we were saving it for later. When we looked at it a couple of months ago we could upgrade to an iPhone 6splus with a contract renewal and it would cost almost 300 which was fine. Now when we try to upgrade it doesn't give us a contract renewal option and only lets us pay the full retail price of the phone with no upgrade discount ?? Is this a new policy change or is there an error becausewe can not afford to pay 700 for a new phone.

Thanks,

[Ann154 · Accepted solution]

The contract option was removed in January 2017. You can either purchase the phone at full retail price in one lump sum or on installments over 24 months through the DPP (Device Payment Plan) agreement. For many the DPP is actually less expensive than the contract price since you won't have the higher line access fee for those same 24 months. You can also lower your monthly installment payments by paying the $300 you would have paid for the contract price as a down payment towards the phone.

[ONCEUPONALIFE]

So lame

[Ann154]

Why do you think that way?

[17mbailey]

Agreed, So instead of them offering free upgrades for 2 year plans so we could get a new phone for being a loyal customer we are now getting punished and paying outrageous prices for the same phones. I have been a customer at least 15 years. I have 6 lines and my bill just keeps going up even with a state employees discount ! I would say I am now in the market for a  new service provider.

[Ann154]

The two year contract price option was actually more expensive over the two years for most customers than the DPP agreement. How is the two year contract price option better for the customers?

[17mbailey]

The promotions that were offered that would make the phone as cheap as free. None of the new plans do that. We already pay more than most other networks and now we get this.

Sent from my Verizon 4G LTE smartphone

[Ann154]

The upfront cost is free,but you pay for higher line access fees over the course of the two year ends up being more costly than paying for the phone over the two years.

[joey2007ua64]

Even with the 2 year contract "discounted" price, you have always paid the full price for your phone.  The discounted price was basically a down payment with 24 monthly device payments worked into your service fees.

Nationwide Talk & Text Plan 700(The plan for which 2 year contract pricing was created)

• Plan access fee $80
• Line access fee $9.99
• Smartphone 2GB data access fee $30
• Total smartphone line access fee is always $39.99($20 line access with $19.99 device payment built-in)
• Monthly service with 4 smartphones under 2 year contract $239.96
• Monthly service with 4 smartphones off contract $239.96 (No line access discounts)
  
• Getting a free smartphone on this plan is equivalent to purchasing a $480 phone on the current plans with device payment.

MORE Everything Plan 10GB

• Plan access fee $80
• Line access fee $40 on 2 year contract
• Line access fee $15 on device payment plan
• Monthly service with 4 smartphones under 2 year contract $240
• Monthly service with 4 smartphones on device payment $140
• Purchasing a free phone on 2 year contract results in additional costs equivalent to purchasing a $600 phone on device payment.

New Verizon Plan 12GB

• Plan access fee $80
• Line access fee $40 on 2 year contract
• Line access fee $20 off contract or on device payment
• Monthly service with 4 smartphones under 2 year contract $240
• Monthly service with 4 smartphones on device payment or off contract $160
• Purchasing a free phone on 2 year contract results in additional costs equivalent to purchasing a $480 phone on device payment.

Verizon had promotions during the holidays that made several $650 phones purchased on device payment $10/month resulting in savings over $400.

iPhone 7 32GB 2 year contract

• Discounted price $199.99
• Upgrade fee $40
• Increased line access fees totaling $480 over 24 months
• Total cost is $719.99

iPhone 7 32GB Device payment

• $0 down
• Upgrade fee $30
• Device payment $27.08 for 24 months
• Total cost is $679.92

iPhone 7 32GB Device payment during holiday promotion

• $0 down
• Upgrade fee $30
• Device payment $27.08 with $17.08 credit for 24 months
• Total cost is $270