Commentary

Marin Perez
 

Verizon Wireless Ditches Contracts

Verizon Wireless took a nice step toward opening its networks today by offering customers the ability to sign up for monthly voice and data service without a long-term contract. Under this model, if you don't like the service you can take your business elsewhere without paying a hefty early-termination fee.

Verizon Wireless took a nice step toward opening its networks today by offering customers the ability to sign up for monthly voice and data service without a long-term contract. Under this model, if you don't like the service you can take your business elsewhere without paying a hefty early-termination fee.This sounds great, but there are a few tradeoffs. First, users still have to pay an activation fee, but this shouldn't cost more than $30. Of course, the lack of a contract also means you won't have a subsidy, and this can quickly take a bite out of your wallet.

While tooling around on Big V's Web site, the BlackBerry 8830 World Edition can be had for $149.99 with two-year contract and an online discount. Even though the feature-packed smartphone was released more than a year ago, this is a fair price for it.


More Mobility Insights

White Papers

More >>

Reports

More >>

Webcasts

More >>

But if you switch to the month-to-month option, that number jumps to $519.99. I'd have to think twice (or 10 times) about that price, and I'd imagine many others would get sticker shock as well. Of course, some of our European and Asian readers have long been used to paying full price, but Americans have been conditioned to expect cheap cell phones. It's going to take a while before that mindset can change.

While researching, I was reminded that the company already offers a prepaid option with INpulse. But this service has a daily access fee and an overage fee that makes it essentially useless for day to day use. Additionally, the selection of phones is severely limited (unless you think the Motorola Razr is the epitome of cool).

There's also no word on how this will happen, as there aren't SIM cards on Verizon phones. Hopefully, the process will be a simple one at a Verizon store. Also, if you're under contract with Big V, you'll have to wait until it's over before you can go month to month.

So, if you already have a CDMA, Verizon-approved device, this is an excellent way to get some service without having to commit to a long-term deal. For all its faults, Verizon does have a rock-solid voice network, and this move toward openness is much appreciated. Now if they could only stop locking down the GPS …


Related Reading




Currently we allow the following HTML tags in comments:

Single tags

These tags can be used alone and don't need an ending tag.

<br> Defines a single line break

<hr> Defines a horizontal line

Matching tags

These require an ending tag - e.g. <i>italic text</i>

<a> Defines an anchor

<b> Defines bold text

<big> Defines big text

<blockquote> Defines a long quotation

<caption> Defines a table caption

<cite> Defines a citation

<code> Defines computer code text

<em> Defines emphasized text

<fieldset> Defines a border around elements in a form

<h1> This is heading 1

<h2> This is heading 2

<h3> This is heading 3

<h4> This is heading 4

<h5> This is heading 5

<h6> This is heading 6

<i> Defines italic text

<p> Defines a paragraph

<pre> Defines preformatted text

<q> Defines a short quotation

<samp> Defines sample computer code text

<small> Defines small text

<span> Defines a section in a document

<s> Defines strikethrough text

<strike> Defines strikethrough text

<strong> Defines strong text

<sub> Defines subscripted text

<sup> Defines superscripted text

<u> Defines underlined text

InformationWeek encourages readers to engage in spirited, healthy debate, including taking us to task. However, InformationWeek moderates all comments posted to our site, and reserves the right to modify or remove any content that it determines to be derogatory, offensive, inflammatory, vulgar, irrelevant/off-topic, racist or obvious marketing/SPAM. InformationWeek further reserves the right to disable the profile of any commenter participating in said activities.

Disqus Tips To upload an avatar photo, first complete your Disqus profile. | View the list of supported HTML tags you can use to style comments. | Please read our commenting policy.
T-Shirt Giveaway T-Shirt Giveaway: Each week we're selecting one great comment from our readers. The author of the comment will receive an InformaitonWeek Community t-shirt. So get posting!
Subscribe to RSS

Resource Links