Verizon Gets Rid of Contracts and Simplifies Plans

verizon logoVerizon recently announced it will be doing away with traditional phone plans and ditching contracts in favor of four simplified data plans ranging from 1GB to 12GB.

These new phone plans represent a shift away from the way Verizon has traditionally operated, as they will require users to pay for their smartphones in monthly installments or buy them outright from the beginning. Instead of locking users into contracts by offering subsidies on their handsets, this new trend set by T-Mobile two years ago offers lower service fees in exchange for users purchasing their devices themselves.

Verizon’s four new data plans will see the end of single lines and family plans. Instead, users will have a choice of the following amounts of data:

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

Since users will no longer be locked into specific plans, they will be able to modify their data plans on a monthly basis to suit their needs. This data can also be shared between different devices and accounts.

Some additional monthly fees will also be applied. An “access fee” will cost $20 per month for smartphones, $10 per month for a tablet and $5 per month for a connected device like a smartwatch.

“Choosing a wireless plan is now easier than ever. Customers said they don’t want to have to do a lot of math to figure out their best options, and we heard them,” said vice president of consumer pricing Rob Miller, in a statement. “A plan with small, medium, large and x-large choices makes sense for the way people actually use their wireless service.”

Only offering four main plans could prove problematic for heavy data users, and could lead to significant charges for exceeding the monthly 12GB cap. To remedy this situation, Verizon will offer additional large data plans in-store.