Verizon changing data plan structure-2 year contracts gone


It seems the device payment plan strategy is taking over the US mobile industry. Everyone wondered if Verizon would ever make the full switch and drop two year contracts. That day is today. Verizon announced this morning that starting August 13 they will “simplify” their data structure into the following S-M-L-XL buckets:

  • Small: $30/month for 1GB of shareable data
  • Medium: $45/month for 3GB of shareable data
  • Large: $60/month for 6GB of shareable data
  • X-Large: $80/month for 12GB of shareable data

Each smartphone will incur a $20 access charge, down from $40 for those on current 2 year agreements. Tablet and jetpack lines will be $10 a month, while connected devices such as smartwatches will still cost $5 a month. You can add more data each month at $15 per GB, or discuss options for a larger plan with your local Verizon store.

The biggest news here is that Verizon is officially killing off the 2 year contract option for all customers. If you are a new customer you will need to purchase your phone at full retail or use the device payment option. Current More Everything customers will be able to keep their current plan until their contract ends, then switch to the new structure if you desire a new smartphone on the EIP. It will be interesting to see how this works out for those of us with multi-line plans. Verizon says that if you are a current customer under 2 year agreement you can switch to the new plans but will continue paying $40 a month for smartphone access until your contract end date.

I personally have 5 smartphone lines with Verizon, so I’ll be doing some calculations to figure out how this will shake out for me. I have a few upgrades I was planning to use on some fall phone releases, but it looks like that option is now gone. It is curious that Verizon did not include any higher data plans in the pricing explicitly. We will continue to keep you updated on any extra information about what these changes mean for new or existing customers!

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Jeff Springer

"I am currently a researcher and Adjunct Professor at Arizona State University and Grand Canyon University. I fell in love with Android with the Nexus One release and realized that it was superior to iOS in all the ways I care about. I still use a Mac (and an iPhone for the camera), but my Apple tech products pale in comparison to my number of Android devices (watches, tablets, and phones). When I’m not rooting/modding one of my many Android phones or doing math/programming, you can find me taking in Phoenix Suns/Arizona Diamondbacks games in downtown Phoenix, and drinking good beer!"