In August 2015, Verizon Wireless announced that it was ending 2-year contracts for new customers. Before, you got a ~$450 discount on a new phone but also got locked into a 2-year contract with an inflated monthly plan price. Now, you have to buy your own phone, but the monthly plan is cheaper. The basic monthly breakdown is that you pick a shared data size below and add $20 per phone line. Unlimited talk and text. Data overages are $15 per GB.
It was supposed to be simple, but there was still a bit of confusion. Here are some clarifications. Verizon customers with grandfathered or legacy plans can keep their plans if they want to. But if they switch to a new plan, they can’t switch back. Verizon customers currently in a 2-year contract can even keep and renew their existing plan with another 2-year contract if they want to (and get a subsidy).
With the previous structure, folks who finished their 2-year contracts and frugally kept their old phone were still stuck paying the inflated monthly plan price. Reader CJ tipped me off that such post-contract customers should try switching to the new plans with lower monthly prices:
Not sure if you saw it, but Verizon finally got rid of 2-year contracts, which means anyone not currently under contract should switch to the new “Verizon Plan” and save a bunch of $$ instantly. I just did, and for 3GB of data my plan went from around $140 for 2 phones down to $80.
If you are currently still under a Verizon contract, you can also switch over to the new plans. If you are currently under a 2-year contract you will have a $40 per phone access fee instead of the new $20 per phone access fee. (That $20 a month is the baked-in subsidy payback. Notice that $20 x 24 months is $480 and the upfront phone discount was ~$450.) Depending on your data plan size, most people will probably see not net change in price, but some may discover a semi-hidden discount.
Bottom line: Verizon has new plans. All customers (on or off contract) should check to see if switching over will save you money. You may or may not discover any savings, but Verizon won’t automatically check for you.