Contract over - I guess I'm still paying a bill that subsidized earlier phone???
- I know that when I grab a new device from Verizon that my monthly bill obviously includes a certain amount to pay-off the subsidized rate for the phone. If I cancelled my contract before it had expired, I would have to pay a penalty based on the "remaining value" (or whatever). But now that my contract naturally expired and I have not taken advantage of any upgrade, should my monthly bill be reduced? Well, I know - HA, HA. But is there any negotiation room with Verizon. Anyone ever follow up on this type of issue?
Background: Old grandfathered calling plan, UNlimited data, I purchased a brand new Z10 privately - got sim from Verizon and insurance since no warranty since I was not original purchaser.
Thanks for any insights (or incites!)05-28-14 11:12 AMLike 0 -
- I know that when I grab a new device from Verizon that my monthly bill obviously includes a certain amount to pay-off the subsidized rate for the phone. If I cancelled my contract before it had expired, I would have to pay a penalty based on the "remaining value" (or whatever). But now that my contract naturally expired and I have not taken advantage of any upgrade, should my monthly bill be reduced? Well, I know - HA, HA. But is there any negotiation room with Verizon. Anyone ever follow up on this type of issue?
Background: Old grandfathered calling plan, UNlimited data, I purchased a brand new Z10 privately - got sim from Verizon and insurance since no warranty since I was not original purchaser.
Thanks for any insights (or incites!)
My recommendation is to review all the options for a new sim-only contract with your incumbent supplier, and then do the same again for the competition.
Then..... call the retentions team at your incumbent supplier and see what they will give you. Haggle a bit!
This approach can work wonders in the UK and some of the rest of Europe, no reason why it shouldn't anywhere else. (I've never had less than a 10% discount - it's usually more - and some added goodies thrown in too, whenever I have taken this approach with UK and Spanish suppliers)
Good Luck!Donnierock likes this.05-28-14 11:45 AMLike 1 - Verizon must do things differently because if I get a phone on contract with AT&T I pay a monthly fee. 2 years go by and I'm off contract but my plan stays the same. I was never charged for the phone, it's just being "on" contract for 2 years.
So you were actually paying for the phone too or what? Because I think maybe you have been either misinformed by a sales rep or didn't quite understand it as usually all cell companies do this normally. I was on T-Mobile and it was the same thing. Just because you're off contract doesn't mean the price goes down and if you have a grandfathered plan, you change one speck of it and the entire thing is null and void.05-28-14 11:49 AMLike 0 - Verizon must do things differently because if I get a phone on contract with AT&T I pay a monthly fee. 2 years go by and I'm off contract but my plan stays the same. I was never charged for the phone, it's just being "on" contract for 2 years.
So you were actually paying for the phone too or what? Because I think maybe you have been either misinformed by a sales rep or didn't quite understand it as usually all cell companies do this normally. I was on T-Mobile and it was the same thing. Just because you're off contract doesn't mean the price goes down and if you have a grandfathered plan, you change one speck of it and the entire thing is null and void.
Posted via CB1005-28-14 11:55 AMLike 0 - This approach can work wonders in the UK and some of the rest of Europe, no reason why it shouldn't anywhere else. (I've never had less than a 10% discount - it's usually more - and some added goodies thrown in too, whenever I have taken this approach with UK and Spanish suppliers)
Good Luck!kbz1960 and Donnierock like this.05-28-14 11:55 AMLike 2 - Actually verizon and at&t include the cost of the phone in your monthly bill. It's just hidden. TMO shows the cost up front and once you pay it off your monthly bill goes down as it no longer includes the price of the phone. Since verizon and at&t hide the cost of the phone in their monthly bills they don't feel the need to drop your monthly bill once it's paid off.
Posted via CB1005-28-14 12:00 PMLike 0 -
Posted via CB1005-28-14 12:07 PMLike 0 - I still don't think that's correct. When we did our contract at the hospital we were given an upfront price and that wasn't even including a phone because most of us brought our own at the beginning. I'm still paying the same price I did years ago when I moved to AT&T whether I go "on contract" or not depending on if I'm cheap one year and don't want to buy my phone outright which normally I do.05-28-14 12:20 PMLike 0
- kbz1960Doesn't MatterI still don't think that's correct. When we did our contract at the hospital we were given an upfront price and that wasn't even including a phone because most of us brought our own at the beginning. I'm still paying the same price I did years ago when I moved to AT&T whether I go "on contract" or not depending on if I'm cheap one year and don't want to buy my phone outright which normally I do.05-28-14 12:35 PMLike 0
- I still don't think that's correct. When we did our contract at the hospital we were given an upfront price and that wasn't even including a phone because most of us brought our own at the beginning. I'm still paying the same price I did years ago when I moved to AT&T whether I go "on contract" or not depending on if I'm cheap one year and don't want to buy my phone outright which normally I do.05-28-14 12:38 PMLike 4
- D-March is correct. That's one way how Verizon manages to make these absurd profits. You ALWAYS get charged for your smart phone (built into their plans), even if you paid full price for your phone upfront, or if you've completed your 2 year contract. It's crazy that we've allowed US carriers to get away with this practice for so long. No matter what you think about T-Mobile, kudos to them for doing the right thing re this matter - they reduce the monthly price once the phone is paid for.kbz1960 and Donnierock like this.05-28-14 12:49 PMLike 2
- I think you are misunderstanding the "agreement."
You aren't technically paying for your phone as part of your monthly bill.
I assumed you got a free (or much reduced device) when you first signed up for that original 2-year contract. At that point, you got the free/cheap device "in exchange for agreeing to subscribe for their service for a minimum period of two years." They gave you the device and met their end of the deal, you stayed for two years and met yours. Done. If you stay for longer... that's completely up to you, but they never promised you anything in exchange for that.
So what I'm saying is, although from the carrier's perspective they are "subsidizing" handsets, they are doing so not by "giving you a loan" for its full value and amortizing the cost to your bill over time, but by retaining your service fees for at least two years.
You can get a new discounted device by again agreeing to subscribe for another two years (i.e. Sign another contract). But the bottom line is that you "paid" for your device with a time commitment, not the monthly fee per se.
Posted via CB1005-28-14 12:51 PMLike 2 - Transparency is to be avoided at all costs for most wireless carries as well as cable companies.
Posted via CB10Bold_until_Hybrid_Comes and Droidophobe like this.05-28-14 12:54 PMLike 2 - I think you are misunderstanding the "agreement."
You aren't technically paying for your phone as part of your monthly bill.
I assumed you got a free (or much reduced device) when you first signed up for that original 2-year contract. At that point, you got the free/cheap device "in exchange for agreeing to subscribe for their service for a minimum period of two years." They gave you the device and met their end of the deal, you stayed for two years and met yours. Done. If you stay for longer... that's completely up to you, but they never promised you anything in exchange for that.
So what I'm saying is, although from the carrier's perspective they are "subsidizing" handsets, they are doing so not by "giving you a loan" for its full value and amortizing the cost to your bill over time, but by retaining your service fees for at least two years.
You can get a new discounted device by again agreeing to subscribe for another two years (i.e. Sign another contract). But the bottom line is that you "paid" for your device with a time commitment, not the monthly fee per se.
Posted via CB10seretse likes this.05-28-14 12:56 PMLike 1 - I understand the agreement just fine. You argument folds however when customers provide their own phones or pay full price for a new phone up front. Why are they being forced to pay for a subsidy they never used?
But anyway, it's a free market system we have here, so good for Verizon that they continue to "get away with this practice".05-28-14 01:18 PMLike 0 - I understand the agreement. It just means Verizon and AT&T can continue to charge you a rate based in part on a phone cost that you've already paid off. They do this to continue to make more money off you. I buy my phones outright and use TMO for my cell services and pay significantly less because I prefer that agreement.
Posted via CB1005-28-14 01:19 PMLike 0 - All the more reason for you to drop Verizon and go to T-Mobile. Even with whatever the monthly "interest free" phone payment is, it's still cheaper than what you'd pay with Verizon and you'd also get more data included and NO overages and NO tethering charges. Also, if you were to stay with VZW and need a new phone, they may not grandfather that plan anymore as they are notorious for that. Lastly, T-Mobile will give you a trade-in credit for your Verizon device.
Keep in mind that VZW (ATT and Sprint as well) have not been gaining customers while T-Mobile has been doing so. If you're a person that doesn't get a new phone every 2 years then you'll really benefit since your T-Mobile bill will drop once your phone is paid off. Remember that you can always pay your phone off early so your bill will reflect that savings even sooner.05-28-14 01:58 PMLike 0 - Thanks for all of the replies. I had a feeling folks would react two ways.
I guess some feel that the phone is free/cheap as a bonus for signing a two year contract and does not figure into the monthly cost. And the "penalty" fee is for breaking the contract and has nothing to do with paying the cost of that initially subsidized phone (since according to some, it was NOT subsidized but thrown in generously).
Yes, to get another "subsidized or NOT" phone I can sign a new contract but that would entail giving up my UNlimited data. They don't seem to care about my very old, limited, grandfathered calling plan. They have been carrying that one forward for at least 10 years (if I can figure out when my clutch died on I-90 (no cell phone at that time), I can figure out when I finally got a cell phone!).
Verizon's Loyalty Dept called me within the month looking to see if there were a better plan for me. He clearly knew in advance there were none and he suggested each one and then noted it was not better or cheaper and each would further require loss of UNlimited data. Go Fish, as they say. I might consider changing carriers.
Keep those cards and letters coming.05-28-14 03:36 PMLike 0 - Verizon secured contracts with a "termination" fee. That is how your two year contract was subsidized. If you cancelled the contract, you would then pay a pro-rated rate for the phone. There is no hidden rate in the contract... It was plain as day. When you buy a phone outright, you don't need a contract other than to get a discounted rate. And then the early termination fee pays for the discount you received, if you leave the contract.05-28-14 03:57 PMLike 0
- I am certainly not defending AT&T here as I have been screwed in the past for the same situation. However, I just bit the bullet and converted my family over to their new plans. The trick to them is that if I want an upgrade, there will not be a separate line item for that subsidized phone on that line. My family (5 lines) dropped $100 a month but I did lose my unlimited data (but for years I have never needed more than 2GB). Anyway, I think the big carriers are changing thanks to TMO as well as offering other brands like Cricket (I think) to deal with the bring you own phone but have the same backend network. Since you are not in a contract...shop it. Grandfather data for me cost me thousands for trying to hold on to it as long as I did.05-28-14 04:13 PMLike 0
-
- Verizon secured contracts with a "termination" fee. That is how your two year contract was subsidized. If you cancelled the contract, you would then pay a pro-rated rate for the phone. There is no hidden rate in the contract... It was plain as day. When you buy a phone outright, you don't need a contract other than to get a discounted rate. And then the early termination fee pays for the discount you received, if you leave the contract.
So, if I walked into Verizon today and SIGNED a new contract but passed on any phone upgrade I would get some reduced monthly rate? I don't think so.SmileDahling likes this.05-28-14 10:58 PMLike 1
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