1yr contract vs 2 yr contract


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  1. sic0048

    sic0048 Well-Known Member This Topic's Starter

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    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!!
     

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  2. ckeegan

    ckeegan Well-Known Member

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    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.
     
  3. ggp

    ggp Well-Known Member

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    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.
     
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  4. sic0048

    sic0048 Well-Known Member This Topic's Starter

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    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.
     
  5. ggp

    ggp Well-Known Member

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    Without taking the time to break down the math, your logic seems sound! :D
     
  6. BigAl_SC

    BigAl_SC Member

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    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....
     
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  7. sic0048

    sic0048 Well-Known Member This Topic's Starter

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

    ggp Well-Known Member

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    That does sound like a good strategy BigAl! Thanks for sharing, I never would have thought of that! :)
     
  9. sc00bz

    sc00bz Well-Known Member

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

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