It appears that Verizon wants to lock in customers for a longer duration. It is reported that the carrier is offering either 36-month contracts or full retail pricing for devices, ditching the 24-month and 30-month options.
A look at Verizon’s website shows that these 36-month contracts apply to both, entry-level and flagship phones. The extended contract isn’t limited to smartphones, it also applies to laptops, smartwatches, and tablets as well.
Pros and Cons of a Longer Contract with Verizon
If you have an existing 24-month or 30-month contract with Verizon before February 3, 2022, you don’t have to worry. According to the company’s upgrade FAQ page, you get to continue with your current plan until its validity runs out.
When it comes to the new three-year contract, you can only upgrade if you pay off the device in full. Early upgrade options are no longer available, but iPhones do get some upgrade specials. You cannot shorten the contract by paying a bigger sum each month. So, you’re stuck with only two options — either pay your regular amount monthly, or pay it off in one go.
Going with three-year contracts may make some sense, especially with the increasing prices of flagship devices. For instance, the $1,000 iPhone 13 Pro would cost you only $27.77 per month, as per the new plan. On the other hand, a 24-month contract would have cost you $33.33 per month. The 36-month contract would mean a slightly lower monthly payment, but at the cost of locking you in to an expensive contract. However, purchasing a phone that’s scant with OS updates, such as Motorola, on a three-year contract sounds like a terrible idea. You would be better off purchasing an iPhone or even a Samsung device. Even then, some customers prefer to upgrade their phones before their contracts expire. Verizon’s rigid upgrade policy will surely drive them away from longer plans.
T-Mobile was one of the first major US carriers to implement a 36-month contract in 2018. However, it has since switched back to 24-month and 30-month options. Last year, AT&T also made the switch to longer contracts.
Do you think Verizon’s 36-month contract will complicate your phone-buying process? Let us know in the comments.[Via Droid Life]