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Won't offer long-running incentives in preparation for iPhone 4

Now that Verizon has the upcoming iPhone 4 to tout, along with the next wave of top-tier Android phones and first LTE-enabled 4G devices, the company has done away with a perk that could have helped some customers pay for said devices. Verizon has confirmed (via SmartMoney) that as of Sunday, January 16, its New Every Two and early upgrade policy will no longer be available to new customers.

The New Every Two program offered customers $30 to $100 toward the purchase of a new phone every two years. Current customers will be able to use this discount one more time within 6 months of reaching 20 months into their contracts. New customers will not be offered the perk.

Verizon's early upgrade program -- perhaps even more attractive than New Every Two -- offered “new-customer” pricing on devices 13 months into their contract. Customers will now have to wait a full 20 months before they are offered the upgrade price.

"The longer you can get customers to go between upgrading their phones, the stronger the profitability for the carrier," Michael Hodel, an analyst for Morningstar, told SmartMoney. As evidence, Hodel points to last year's iPhone 4 release, when AT&T allowed many subscribers to upgrade early, sometimes even waiving the $18 fee. This resulted in shrinking profit margins for the carrier. 

Verizon, on the other hand, can count on a number of AT&T iPhone users to jump ship for its CDMA version of the device -- without having to offer much extra incentive.

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RE: ooph
By mcnabney on 1/18/2011 9:46:22 AM , Rating: 2
Mark's description is actually a little on the inaccurate side. He didn't mention the following key facts.

1. New Every 2 only applies to primary lines. Secondary lines could only upgrade after 22 months.
2. Annual upgrades ALSO only apply to primary lines.
3. Eligibility for upgrading in general is being move up to 10 months with a 1 year and 20 months for a two year. So all lines will be able to upgrade a little earlier.
4. New Every 2 hasn't been $100 for many years. I think it is currently $30 for primaries under $80/mo and $50 for primaries over $80.

RE: ooph
By Luticus on 1/18/2011 9:54:45 AM , Rating: 2
i got my last phone about a year and a half ago (I'm up for renewal this summer) and i got $100 off. I don't like that i sign a contract and all the sudden some time into it they change the deal. I signed a contract with them and i can't just randomly decide, ok I'm only paying to $90 instead of the full $100 because my household profit margins will be better that way... they'd be pissed. Well now I'm pissed because i saw the new every 2 as part of the deal i signed up for.

It's like they have chad vader working for them... "I'm changing the deal... the long distance deal." suck it, verizon!

RE: ooph
By ebakke on 1/18/2011 10:12:18 AM , Rating: 3
Well that's the beauty of a wireless service contract. If the provider changes the terms, you're within your rights to say "yeah, I don't think so" and walk away.

RE: ooph
By Luticus on 1/18/2011 10:34:20 AM , Rating: 2
considering it...

RE: ooph
By theapparition on 1/18/2011 11:41:04 AM , Rating: 3
You are completely incorrect.

The terms of you contract are still binding. "If" Verizon changes the terms, you have the option of voiding the rest of the contract. That's why they send you those TOS letters in the mail. Don't like the new terms, call and cancel service with no reprocussions, including early termination fees.

However, in this instance, the NE2 program will continue on the terms of your old contract. Whenever you are eligable for an upgrade, the NE2 will be there, based on the terms that you signed. Only the new contract, if you chose to re-sign with Verizon won't have the NE2 option anymore. In other words, they are doing away with NE2 for new contacts after the specified date.

So you may be unhappy with the change (and I don't blame you), but don't claim that Verizon is changing you contract mid-stream with no recourse, because that is not the case.

RE: ooph
By Luticus on 1/18/2011 12:58:15 PM , Rating: 2
Current customers will be able to use this discount one more time within 6 months of reaching 20 months into their contracts.

I think i may have interpreted this incorrectly to mean that there was a time limit for which you could use your upgrade even if you were an existing customer. the fact that they aren't doing away with this mid-term does make me a bit happier but it does indeed still suck as i really liked the program. I am definitely going to be looking hard come renewal time.

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