1yr contract vs 2 yr contract

[sic0048]

OK - I do not currently have personal cell service at all (work supplies my phone). I will be getting a personal phone very soon and am 95% sure I will end up on Verizon. I have a couple of questions concerning the 1yr vs 2yr committment.

Here are the facts as I am aware of them:

2 Year Committment
- you generally get the best price on initial phone purchase
- you quality for the NewEveryTwo "discount" after 20 months of service if your base plan costs $34.99 or more per month.
- you can qualify for the "upgrade" price on a new phone after 12 months IF your base plan costs $49.99 (before any discounts) or more per month
- generally your activation fee is waived

1 Year Commitment
- generally speaking there will be an additional $70 cost added to the 2yr contract phone price
- you do not qualify for a NET discount.
- you can qualify for a new phone after just 12mo without any plan price requirements

I've seen a $20 fee mentioned when talking about the 1 year plans. Does anyone know for sure what that is about?

I am considering getting the 450 minute talk only plan + unlimited data. That would put my base plan price at $39.99 and therefore I would not qualify for the annual upgrade.

I think there is a good chance that I would want to upgrade in 12mo with all the new phones that are coming out. I guess I am trying to determine which plan is better for me.

Clearly the 1 year plan will cost at least $70 more initially. There might be another $20 fee as well as an activation fee which is $35. So I am likely looking at about $100-125 more initially than the two year plan, but I could get a phone at the subsidized price ($199 for example) again in 12 months, correct? On the other hand, if I get the 2 year plan, I would have to pay full retail for a new phone in 12 months. It sounds like the 1 year plan is better in my case even with the higher initial fees.

Any thoughts or comments?

Thanks!!

 

[ckeegan]

Annual Upgrade policy: "You must be registered for My Verizon, be on a calling plan of $49.99 or higher and have completed at least 1 year of a 2-year contract and agree to renew for an additional 2 years in order to get a new phone at a promotional price. It’s as easy as that."

It is my understanding that the "promotional price" is the 2-year price. It always has been in the past. The policy also states "upgrade fee may apply", but that fee has always been waived when upgrading online.

 

[ggp]

A one year contract is a one year contract... when it's over you're out of contract and qualify for any current promotional equipment pricing, whether it be another 1 year or a 2 year contract. The $20 early upgrade fee is for folks that got the 2 year discount on their device, but now want a new phone after only one year, and they must qualify as noted above.

 

[sic0048]

Thanks for the information.

So it sounds like if I plan on going with a plan that is less than $49.99, then I should go with a 1 yr plan. If I end up going with a plan that is more than $49.99, I'll probably switch to the 2 yr contract and upgrade after 1 year.

 

[ggp]

Without taking the time to break down the math, your logic seems sound!

 

[BigAl_SC]

My only comment is that if you are on a family plan then one year only on the additional lines. We do the two year on the main line as you can upgrade for $20 after a year if needed. All additional family lines are one year with a $30 (web) to $70 (stores) added with phone purchase. Nothing is worse than having a old phone on an additional line that still has another year of contract.

Only other disadvantage is that resellers like best buy don't do 1 years so it throws you into the vz's rebate marketing plans at the company stores....

 

[sic0048]

Great idea BigAl_SC! We are actually considering a family plan now and dropping the home phone completely. I appreciate the information.

 

[ggp]

That does sound like a good strategy BigAl! Thanks for sharing, I never would have thought of that!

 

[sc00bz]

On a one year contract, you are eligible to update after 10 months.