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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: And things like this
By wolrah on 1/18/2011 10:41:55 AM , Rating: 3
Sprint and Verizon have full roaming agreements with each other, so if you have Verizon signal you can use it on a Sprint phone.

Obviously each phone will prefer its native carrier's towers, so if you have a weak but usable Sprint signal it will prefer it over the Verizon tower next door, but for all intents and purposes 2G data and voice coverage is identical between the two.


RE: And things like this
By DanNeely on 1/18/2011 10:45:00 AM , Rating: 2
Does the roaming agreement cover 3g data?

I know 4g is a lost cause due to different platforms.


RE: And things like this
By Chaser on 1/18/2011 2:27:34 PM , Rating: 2
I travel from Coast to Coast to most major cities and some smaller towns as well. I'm pleasantly surprised with Sprint's voice and 3G coverage. 4G is a mixed bag but if you are in the center of a downtown it can be very fast.


RE: And things like this
By DanNeely on 1/18/2011 6:39:52 PM , Rating: 2
According to their map roughly 1/3rd of my area has no 3g coverage; and considering how optimistic the maps are I suspect the reality is much worse. VZW is the only provider with anything approaching full coverage in my area, and even they don't have all the deeper valleys covered.


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