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We all knew it was coming, but an update to Verizon’s official FAQ has sounded the final death knell for the ‘New Every Two’ program allowing customers to upgrade their handset at a discounted cost every two years. New lines and new customers will, as of now, not be eligible for discounted upgrades every two years, while existing customers signed up before the policy change are entitled to one more before they too will be relegated to paying out bigger bucks for new hardware. Looks like VZW is content on making you keep the phone you have for a while, and just like the end of unlimited data slowly spread across carriers, we won’t be surprised if other mobile providers slowly start to withdraw their two year upgrade policies.
[via Engadget]
![update to Verizon’s official FAQ](<img class="thumbnail" src="http://phandroid.com/wp-content/uploads/2011/01/LG-Optimus-2X-Australia-Android-22-150x150.jpg" alt="" style="margin-top: 3px">){kind=link}
What a load of bullshit. Whats the point in people resigning a contract if they don’t even get a discount. Verizon is off their rocker and probably won’t hold customers for too much long with that nonsense. At least when I throw out the big bucks at T-Mobile I pay less on my bill.
I dont get it, so now i have to pay $500 for a new phone? I thought this just meant they were getting rid of the $30-$100 credit they applied on top of the subsidized pricing.
I see this as creating 2 side effects, 1 creating lots of mobility between carriers once your contract expires, and/or 2, stifling innovation from phone manufacturers, as it will reduce their sales volumes, and profits accordingly.
It’s hard to afford the $200 price of new phones, I don’t know how I’ll pay $500+
Wow…
Are they gonna reduce the monthly fee then, since they are not subsidizing the phone price anymore?
This is a little misleading. According to Verizon’s FAQ
“New Every Two was a marketing program available to customers who signed up for a two-year plan of at least $34.99 per month. Enrolled customers were eligible for a $30 or $50 credit toward a new phone depending on their monthly access tier.”
Which means the $199 for a Smartphone will still be in affect, just that you won’t get that $30-$50 off for whichever plan you are on.
@ andrew .. dood re read the article and the prior article. The new every 2 program was a program that offer ADDITIONAL CREDIT on top of the discounted price of the 2 or 1 yr contract renewal
why does this coincide with the verizon iphone?
@Kevin Krause: LOL, this was reported right here on Phandroid on January 12th:
http://phandroid.com/2011/01/12/new-every-two-is-officially-dead-for-verizon-customers-january-16/
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And then the story was corrected on January 14th:
http://phandroid.com/2011/01/13/clearing-up-the-new-every-two-confusion/
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Do you even read this site?
nope.
everybody is so stupid. YOU STILL GET A DISCOUNT WHEN YOU SIGN A NEW CONTRACT! you just don’t get an additional discount of $30 to $50 for waiting the two full years.
YOU STILL GET A DISCOUNT WITH CONTRACT
YOU STILL GET A DISCOUNT WITH CONTRACT
YOU STILL GET A DISCOUNT WITH CONTRACT
ps as a side note, 90% of my customers at Verizon don’t even know what a new ever 2 is.
It’s not that surprising. While new hardware is constantly coming out, so are software upgrades. Two years ago it was rare, except in critical cases, that an update to phone software gets pushed. Now you’re seeing updates every few months or so. I wouldn’t be at all surprised if the savings from the New Every Two went to offset update costs.
SUBSIDIZED CELL PHONE PRICES ARE NOT GOING AWAY! THE NEW EVERY 2 IS COMPLETELY DIFFERENT!SUBSIDIZED CELL PHONE PRICES ARE NOT GOING AWAY!SUBSIDIZED CELL PHONE PRICES ARE NOT GOING AWAY!SUBSIDIZED CELL PHONE PRICES ARE NOT GOING AWAY!SUBSIDIZED CELL PHONE PRICES ARE NOT GOING AWAY!SUBSIDIZED CELL PHONE PRICES ARE NOT GOING AWAY!SUBSIDIZED CELL PHONE PRICES ARE NOT GOING AWAY!SUBSIDIZED CELL PHONE PRICES ARE NOT GOING AWAY!SUBSIDIZED CELL PHONE PRICES ARE NOT GOING AWAY!SUBSIDIZED CELL PHONE PRICES ARE NOT GOING AWAY!SUBSIDIZED CELL PHONE PRICES ARE NOT GOING AWAY!SUBSIDIZED CELL PHONE PRICES ARE NOT GOING AWAY!SUBSIDIZED CELL PHONE PRICES ARE NOT GOING AWAY!SUBSIDIZED CELL PHONE PRICES ARE NOT GOING AWAY!SUBSIDIZED CELL PHONE PRICES ARE NOT GOING AWAY!
@steventucker
And I want to buy a phone from you. Enjoy your nickel and dime company!
Damn… Not this again.
Look people who don’t get it.
Example:
Droid X
* 569.99 full retail
* 269.99 1yr renewal/new contract after rebate
* 199.99 2yr renewal/new contract after rebate
With verizon’ now dead new every two program … you get 30 to 100 off ON TOP of the contract price stated above
But really, who cares, Verizon blows. Also, why is anyone stupid enough to get a phone and required to extend their contract? Does no one realize when you get a “free” phone you’re really being forced to pay about a grand for it? I went contract free years ago, and I’m happy spending all the extra cash I have. Why give your cellular company all that extra money? People, wake up, you’re idiots!
This isn’t really a big deal. They offer the mail in rebates now which essentially negates new every 2. I have not taken advantage of NE2 for years now. However I always take advantage of online discounts and the rebates. The only thing messed up by the rebates are, they come on visa gift cards and are almost impossible to use when they get down to the 1-2 dollar balance. So they are screwing you for a few bucks….
All this really does is remove the incentive to stay with Verizon when your contact is up. They are essentially evening the playing field and I’m sure they’ll lose some customers because of it. Sadly, my wife and I are under contract for quite a while longer, but when it is up we are going to shop around for sure. I will likely switch.
and to futher confirm with the rest of this post, the phones on new contract will still be around 199. This is subsidized pricing and this is NOT going away.
Damn!
Well, you can’t really complain about the network – Verizon is obviously better than AT&T, so the iphone on verizon should be a big hit.
Also see:
http://www.programmerinterview.com
This is going to kill the sales people. New every two was a way to get me into the store and talk to them. Now I will be shopping online. Even the Verizon website has better deals than the actual Verizon stores!
hahahaha i think verizon wireless just wants to lose all their customers. T Mobile FTW.
Verizon stabs their loyal customers in the back…. Hello sprint, go f#ck yourself verizon. When my contract is done I will find a company that respects my loyalty.
Big Deal. So you just ping-pong between VZW and AT&T every few years.
lol @ comments – sprint just announced 3g prices will be the same as 4g, verizon cuts a 60 dollar discount and att says screw everyone we dont have enough money yet.
It would just fill my heart with joy to see google purchase t-mobile outright and watch the blue death star crash into verizon and explode all over the now network.
Note: To be clear, you’ll still be eligible for normal subsidized pricing once you pass into the upgrade period on your contract — you just won’t get an extra discount on top of that.
So what the big deal no other carrier has special discounts after 2yr
No problem. Now I have an excuse not to sign a two-year contract. Month-to-month it is and the ability to switch carriers when I see a better deal.
Aww man I’m gonna miss that extra $100 when I upgrade in 1.5 years. I got my X for $99.
Phandroid would you please explain this in the article. You guys haven’t been clear about this from the start. The phone is still subsidized. You pay the same amount. the two year thing was a discount on top of that. The droid X was 200 dollars and with the discount it was 100 dollars after that. Now customers will have to pay the full 200 like T-Mobile, Sprint, and AT&T. The way Phandroid has posted this makes it a little confusing for those who aren’t as up to speed on this. Guys please include this info in the main part of an Article. Phone Arena already has.
My first thought when reading the title was “Oh boy, Kevin has got them fired up again.” Then I read the comments and realized that my thoughts were founded. When will it end?
Then I’ll probably start giving everyone my Google Voice number. Then every two years I’ll sign up as a new customer either under my wife’s name or mine. With Google Voice I don’t care if I get new cell phone numbers. New customers always get better deals than existing customers.
When Sprint stops unlimited data,and stops a discount on a upgrade every 2 years,I’ll be done. Carriers are already making a killing on their customers. They need to chill on their overpaid marketing(4g,NFL,NASCAR,ect. ) and realize that we pay the bills for them !
This is seriously an ignorant idea. If they aren’t going to take steps to keep existing customers, then this will surely spread across all carriers. I think it is probably a safe bet to say that within a year all the carriers will be offering incentives to new customers to differentiate themselves. So, they are trading one incentive for the other essentially. The stupid thing is that on average you have to spend much more to get a new customer than to keep an existing one. Not impressed Verizon, not impressed.
My contract is up 1.5 years, and if this happens, I’ll definitely be taking a real close look at the other carriers.
@guardian. My thoughts exactly. The NE2 was additional credit on top of credit.
Guys this won’t last. If I was on Verizon and I am not. Once my two year contract was up, they either hook me up or I move on to another carrier. What do you suppose Verizon will do in the face of loosing customers…you got it, they will start making exceptions, until the policy is gone. That is of course if you are a customer in good standing who pays his/her bills:)
i nver wait the full term anyways haha. so i dont care
Man you guys are idiots, You still get a discount on your phone its just they are not hooking you up with that EXTRA discount like they did before, shit no other carrier ever did that so STFU!! and on top of that they squash the competition by far.
For those of you complaining, congratulations! You have been successfully mislead by Phandroid. I love this website, but you guys have now neglected multiple times to be clear on this subjec. Why do the commenters seem to be more clear than the writer of this article?
The real tragedy is the loss of annual upgrades for lines over $50 per month. Screw the NE2. I want to get newer devices more often. Waiting the 20 months would be rough. Just have to start signing one year contracts. At least a ten month old device still sells well on ebay.
Okay I was a bit confused about the “New Every 2” but my other big concern is that they are no longer allowing a discount at the 12th month of your contract and changing it to the 20th month.
i cannot believe the amount of people crying about only receving one discount, as opposed to two, and the one you keep is worth about 4x as much…what a joke.
I agree with the poster a few up, the writer of the article really doesn’t have much of a clue about the new every 2 program and what its loss means. Also to go along with that this only applies to NEW customers, so if you already have a verizon phone then you will still get your new every 2 discount when it comes up. So for some that won’t be until 2013 so then you all can really start your bitching and moaning. Also anyone trying to claim that t-mobile is worth forking money over to is freaking high they blow, they can’t even come up with an original tv ad. They are like the training wheels of owning a cell phone.
Seems to me like a strong incentive to move to one-year contracts if you want to get Android or other smartphones, and want to upgrade sooner than 20 months (likely with all the phone improvements.) The difference in contract price is only $70 between one and two year contracts, better than the ETF hit or buying a non-subsidized one after 13 months.