Verizon Wireless has made an announcement that will change the way you pay for wireless service for good. According to a report from CNET, the telecom giant announced on Friday that it planned to introduce a new set of data plans that allow customers to pay for their smartphone in installments or up front.
The new plans will go into effect on August 13, and represent a radical change from Verizon’s normal strategy of smartphone subsidies and contracts. Customers have shown a willingness to pay for their devices in full in exchange for lower service charges, and service providers are listening. T-Mobile made the same move two years ago.
Under the new system, there are no family plans or single-line options. Verizon will promote four options with different amounts of data, but all plans come with unlimited voice and text messaging. Plans will range from 1 gigabyte of data for $30 each month to 12 gigabytes for $80 each month.
The absence of contracts makes it easier for consumers to switch between plans each month, likely upgrading to a plan with more data. Verizon hopes the move will make things simpler for customers, but some still have their doubts.
Analysts find it strange that Verizon’s plans would peak at 12 GB, potentially scaring off customers that use a lot of data. Users of smaller amounts of data might see their rates go up as well. Verizon has acknowledged that this is the first time it has rolled out a payment option like this, and said that they will monitor the market carefully and adjust prices accordingly.