Liked the idea of buying an iPhone for $200 or a Moto X for free? But you never knew that the actual cost was hidden within subsidy and fee charges. Well, it is going to change for good now. Broadband and telecommunications company Verizon revealed new and improvised plans this Friday. The company plans to bring the plans into effect from August 13, 2015. To compete with T-Mobile, Verizon decided to go for a refurbishment of its offerings.
Currently, customers are required to choose either family plans or single lines, and then choose a data bucket. In addition to this, if users had more data and contract, they have to pay a more expensive access fees. This has resulted in unnecessary complication and time consumption. Thus, Verizon felt the need to revise and improvise its existing plans. Moreover, customers bound by a contract cannot shift to new plans right away.
The company announced that it is going to get rid of intricate plans and options involved in its cellphone service. Verizon is set to adopt European and T-Mobile models of flat fees and separate phone payment options. It will offer service in four forms for a bucket of data. Beginning with the ‘Small’ plan, customers will have to pay $30/month for 1GB of shareable data; while the ‘Medium’ plan involves a cost of $45/month for 3GB of shareable data. The ‘Large’ plan offers 6GB of shareable data for $60/month, and the ‘X-large’ plan charges $80/month for 12GB of shareable data. Although texting and calling are always free, there is an access fee of $20 for a smartphone, $10 for every tablet or Jetpack mobile hotspots and $5 for a wearable or accessory which act as connected devices.
The Dow 30 company also announced revised plans for buying a smartphone which offers two options to its customers. At present, it subsidizes the cost of the phone to offer a low price. The first option is to pay the full retail price at once while the second one is to make a series of smaller payments in terms of installments. All family plans and two-year contracts will be eliminated.
Chuck Hamby, the spokesperson of Verizon, said that they are trying to simplify the math, and these revised plans aim to provide simple and clear billing to customers and to help make accounts easy to manage and personalize. Verizon’s move clearly reveals the company’s concern over the fact that its competitor T-Mobile has been successful in grabbing a bigger market share over the past two years especially when it surpassed Sprint to become the third largest carrier in U.S.
By separating the service cost from that of the phone, customers will be able to keep better track of their money. The response by the market will be the deciding factor of its success with the improvised plans.