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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 anandtechrocks on 1/18/2011 10:48:13 AM , Rating: 3
I've been a verizon customer since 2001 and although I've had some issues (unexplainable data charges), I've found verizon customer service to be helpful and friendly. I don't know where they get their bad rep from, and I actually don't think they're over priced. They offer discount pricing because of where I work, and I pay only $135 for 3 smart phone plans for my family. My "new every two" is up soon, and I'm glad they'll let me use it one more time.


RE: And things like this
By Suntan on 1/18/2011 11:09:59 AM , Rating: 3
I agree. I have been a Verizon customer for 7 or 8 years and in the limited amount of time I have been to there stores (mostly to play with a potential phone before getting a new one) they seem to be nice and some of them even knew the products they were selling.

That said, I don’t have any real allegiance to them, I use their service because I get a 20% discount, both my family and my wife’s family predominately use them, and they have really good coverage in the areas I make calls. If another phone company can offer similar, I’d have no issue switching.

I do find it funny that people are calling Verizon out for dropping their NE2 program, yet everybody around here complains in general about carriers subsidizing phones to hook customers. Can’t have it both ways.

Personally, I’m in favor of phone pricing that more closely tracks with their true cost, and letting the carriers service offering dictate the value of their plan. So even though this means some future phone I get might cost more, it fits better with the way I wish it would work.

-Suntan


RE: And things like this
By Luticus on 1/18/2011 1:12:25 PM , Rating: 2
My beef with verizon is not their customer service. For the most part i had good customer service except for one bill dispute which I'm still not happy about, but they did end up meeting me half way and so i have since dropped the issue.

My problem with verizon is that they nickel and dime you to death, making you pay ridiculous rates for data plans per phone, and then wanting you to pay extra to tether and on top of that they get pissed when you actually use it and go over 5gb even though they market the plan as "unlimited". the term "unlimited" seems to have a really loose definition in the corporate world. I understand it's more than just verizon that does these things, it's simply that verizon is the one i happen to be with now and so they are the ones I'm annoyed with. they strike me a greedy fat cats with a creepy evil empire vibe that i don't like. Every move they make these days is doing little to ease these feelings and in most cases only makes them worse. I feel like verizon is becoming the apple of the cellular world that only the elite few can afford to take full advantage of and scraps to the rest.

I don't know, call me crazy... but the fact that $80/month buys you 10gb of data over a slow 3g connection (in most places) is appalling. just because it's mobile... really? I don't know, really I'm pissed off at the entire cellular market... and cable/internet/satellite markets too now that i think about it.

Seriously is there an awesome plan/company out there for nerds who actually want to use the service their paying for without breaking the bank? I don't mean ridiculously cheap either. I don't mind paying $100 - $140 for cellular service (2 smart phones) as long as i get GOOD USEFUL service.

I don't think that's a terribly unreasonable request. I mean... really? Pipe dreams... Pipe dreams...


RE: And things like this
By AlphaVirus on 1/18/2011 11:37:58 AM , Rating: 2
I'm not a Verizon customer so I can't vouch for the customer service, but I can vouch for pricing.
Minute for minute and byte for byte, Verizon is the most expensive major carrier.

I must add that they do have the BEST network amongst all major carriers. I've tested Tmobile vs ATT vs Verizon all in the same car and drove around, Verizon always came out on top. At the time I didn't have a Sprint device to test but I know they have been improving over the years.


RE: And things like this
By mcnabney on 1/18/2011 3:05:08 PM , Rating: 2
AT&T and Verizon have essentially the same prices.

Not sure how you consider one to be cheaper than the other.


"I mean, if you wanna break down someone's door, why don't you start with AT&T, for God sakes? They make your amazing phone unusable as a phone!" -- Jon Stewart on Apple and the iPhone














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