Ver­i­zon Nixes phone sub­si­dies with new plan, fol­low­ing trend

The Pak Banker - - COMPANIES/BOSS -

Ver­i­zon Com­mu­ni­ca­tions Inc. will re­quire new cus­tomers to pay for their mo­bile de­vices up front or in monthly in­stall­ments, fol­low­ing other wire­less car­ri­ers who have phased out sub­si­dies in two-year ser­vice con­tracts.

The new pol­icy, ef­fec­tive Aug. 13, will ap­ply to users who sign up for Ver­i­zon's Small, Medium, Large and XLarge data plans, so named depend­ing on the amount of share­able data they of­fer. Ex­ist­ing cus­tomers will be able to keep their plans or sign up for the new ones, the com­pany said Fri­day in a state­ment.

Ver­i­zon Wire­less is the latest car­rier to shift away from sub­si­diz­ing the cost of a phone over a two-year ser­vice con­tract and to­ward re­quir­ing cus­tomers to pay the full price for their phones. Ver­i­zon ex­pects about 50 per­cent of new sales to come from its so­called Edge in­stall­ment plan this year.

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