Verizon’s new plan is $20 a smartphone plus one of four data plans.
Verizon, the nation’s largest mobile service provider, is following T-Mobile’s lead with new simpler plans and an end to two-year contracts and subsidies.
Existing smartphone customers probably will pay less but can choose to stay with their current plan.
Verizon’s simpler plan, which will begin Thursday, charges $20 per smartphone for voice and texting. Users then add one of four data plans, which range from $30 a month for 1 gigabyte to $80 for 12 GBs.
Phones cost extra and can be purchased for full price or on a monthly payment plan.
The new prices seem to save customers about $20 a month, but savings vary based on what the customer buys, said Meagan Dorsch, a Verizon spokeswoman.
Data plans are shareable. For a family of four who own their smartphones and need 3 GBs, for example, the cost is $125, excluding fees. Verizon’s More Everything Plan is $150, while T-Mobile charges $110 for a comparable plan.
Existing Verizon customers can stay with their current plans, but if they decide to upgrade, there could be extra charges. Verizon says there will be restrictions, The Associated Press reported.
Verizon also will charge $10 a month to add a tablet or Jetpack (a portable Wi-Fi hot spot) and $5 a month to add a smartwatch or other connected device.