Stop calling upgrades "subsidization contracts" . . .

[boobdole]

I see posts all over talking about how the high monthly rates are because of the cost of phones being subsidized but if this is the case, why is it if you complete your 2 year contract, pay full retail price for a phone, your phone bill doesn't drop through the floor because the phone no longer needs to be subsidized?  And why is it you can add another line for just another $10?  Are they charging so much initially that it easily covers additional lines?  If so, we're being gouged for not maxing out on lines.  The math doesn't add up to their claims . . .

Verizon, stop using "subsidization costs" as an excuse for higher monthly bills or drop our monthly phone bills if we provide our own phone.  You can't play both hands . . . Pick one and commit.

/rant

[21stNow]

If only they would listen to you.

[#3]

Verizon can charge whatever they want and call it whatever they want.  You can buy the product or not.

[commonsense101]

Please show anywhere verizon said their rate plans changing is due to the billions they lose in of phones every year

[reallyniceguy]

You will be able to have more lines when the new plans take effect.You do not have to buy a phone under contract price. You can buy it full retail price from the manufacturer or at any store where they sell verizon phones. I dont understand what this post is about if it makes clear sense.

[Tidbits]

Here's the answer why they call it subsidized...

There was this court ruling in 1998 which Verizon(and other carriers for that matter) that Verizon was correctly calling it what it is.  If you buy the device outright there is no assurance they'll make money off you.  If you sign a contract there is assurance they'll make that money.

T-Mobile has a BYOD plan and they drop their prices IF you sign a contract...  Their non contract(prepay) uses different towers than their regular contract plans so you are not getting their "complete" service so to speak.

[boobdole]

You REALLY have never heard anyone say that the reason rates are so high is because they have to subsidize phone costs?  Talk to just about any rep and that's their reason for it.  Look on the forums and you can find it mentioned in plenty of places. 

I'm not saying the NEW rate plan has anything to do with it.  I'm saying that they're playing both sides of the issue to maximize profits (though Tidbits did a pretty good job of explaining why this is). 

I wonder what the chances are that Verizon would consider a "provide your own device" plan.  That sounds awesome, for those of us that don't NEED the newest phone or don't mind extending their contract if they can get a lower price. 

[boobdole]

That actually makes a lot of sense.  Think Verizon would consider providing a BYOD contract deal?  That sounds like that would bridge the gap.  Though, that said, it would cut down on their record profits so probably not. 

[boobdole]

The issue I was referring to has nothing to do with the new plans (sorry for the confusion).  What I was trying to understand (that Tidbits cleared up) is why we continue to pay "subsidized prices" once our contracts expire.  If we provide our own phones, in theory, they're not needing to subsidize our devices any longer so having extremely high rates seems a bit unreasonable (though as it's been said, it's their company, their rules).  I just want transparency and simple logic to apply rather than the smoke and mirrors approach they typically take when justifying additional fees and such.  The prices should make sense for the services they provide.  And if we're not utilizing a service, it seems a bit silly to tell us we're paying high prices for something we are clearly not using and have no option to opt out of.  But now I'm speaking in generalities and I'm sure someone will come back with a counter logic . . . involving car dealerships or gas and electric companies . . .

[Tidbits]

Their BYOB plans are cheaper but you still sign a contract and subjected to a termination fee. Look up their Value plans.

When you buy your device outright there is no assurance that they get your business. I'd say about 2 maybe 3 years ago T-Mobile tried lowering the plans on off contract and you BYOB and it failed. If T-Mobile gained a large portion of customers all the other carriers would do something similar. The data shows that less than 2% of all cellphone buyers buy them outright.

FYI I always is most cases buy my devices outright. I took my first subsidization in 11 years in December of last year.