If you are using Verizon phone services of any type, you might be interested in how the company is changing its wireless service approach.
As of last Friday, Verizon has introduced new data plans that allow you to either buy your phone on the spot or pay for it in monthly installments. These new plans will be available starting with August 13.
The company is looking forward to moving away from older smartphone subsides and service contracts. Customers tend to pay more for their services if they are offered low fees. So, hypothetically, they perceive that it is expensive to pay $30 monthly, but if they pay $15 monthly and always have the option to add one or two $2o features, they might do it on the long run.
This phenomenon was discovered by T-Mobile a few years before and they saw fit to make a change that would enforce the trend. The change also helped their brand very much as they increased the awareness of their phones and services.
Verizon’s new price plans do not include single-line options or family plans anymore. You will be able to choose only from four choices that have different amounts of data. The good thing about them is that they all have unlimited text and voice messages, so it is not like the 4 choices are “limited”.
The four choices are as follows: for $30 a month you get the “small” bucket, which offers 1GB of data; for $45 a month you get the “medium” bucket with 3GB of data; the “large” bucket costs $60 a month and you get 6GB of data and the “x-large” offers 12GB for the price of $80 a month. What remains the same is the fact that you can use the data in between accounts and devices.
There are no contracts, so you can choose a different plan any month according to your needs.
There is also another fee that Verizon charges for connecting a device. It is called an “access fee” and it costs $20 a month to connect a smartphone, $10 to connect tablets and $5 for any small device such as a smart watch.
It is quite a risky move that Verizon made given the fact that they are the company with most customers on a service contract. People like to work with Verizon because of the smartphone offers. If you sign a contract, you can buy a new iPhone for around $200. Without the contract the phone would cost in between $600-$700.
It remains to be seen whether this change is going to influence Verizon customers in a positive manner. Only time will tell if this move was a profitable one or not.
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