News of Verizon’s upcoming payment structure change has been making the rounds, but what will this mean for next month’s phone bill? According to a CNET report, the wireless company will stop offering subsidized phones and contract plans, and begin selling phones to consumers up front on August 13. Some worry that the new payment scheme may work against certain types of consumers.
If you’re an average data user, then you likely don’t have any reason to worry. For the most part, customers have indicated that they are more than willing to purchase their phones up front if that translates to savings in service charges and data plans. The switch was made by T-Mobile two years ago, and it signals a deeper understanding of the true costs of delivering wireless services.
If you’re someone that uses a ton of data, however, you might want to take a step back and consider all of your options. Verizon will offer data plans ranging from 1 GB per month for $30 to 12 GB per month for $80. Heavy data users will find themselves paying extra if they happen to exceed the 12 GB monthly limit.
Although customers can switch between plans by the month, there are service charges attached to any device you want to connect. Verizon will charge a $20 monthly “access” fee for smartphones, $10 for a portable WiFi hotspot or tablet, and $5 for a smaller device like a smartwatch.
Additionally, customers who are currently under the 6GB family plan will actually see a $5 increase in their monthly bill under the new scheme. For customers with large families, the increased service fees will add up quickly.
Verizon has acknowledged that the transition won’t be easy, and it will monitor the markets to adjust to the best pricing setup as necessary. Even still, if you’re worried about your phone bill going up, it may be time to start researching your options.