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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.

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.

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 …

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