Unsubsidized vs. Unsubsidized?

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  1. MariposaNegra17

    MariposaNegra17 Well-Known Member

    I'm sorry if this has been posted elsewhere >.<

    I am very confused about this whole buy the phone for $529.00 or get it for $180.00 with a 2 year contract...

    Humor me a little here...If I buy the phone for $529.00:

    Will i be able to have insurance? If so, how will I pay for it? Monthly?

    Since I'm waiting for it to be on Verizon's network, let's just say that I buy the phone (for $529) for Verizon, becasue i bought the phone entirely, would I only be paying for data, or would I have to pay for a monthly bill even though I would not be on a contract?

    So what's better, buying it with or without a contract?

    I apologize for my ignorance on this subject, I am new to this kind of thing :rolleyes:

  2. NexusMMM

    NexusMMM Well-Known Member

    Hypothetical for yet to be released Verizon N1 (and assuming they follow the same T-Mobile model)

    Unsubsidized: You pay full price for the phone thus aren't required to enter into a service contract with Verizon. Instead you will be what is termed a "month-to-month" subscriber meaning you can cancel your service at any time without contractual penalty.

    In order to use the N1 on Verizon unsubsidized, you will have to pay for a voice (calling minutes) plan and a data (web/internet) plan.

    Subsidized: In exchange for the ability to purchase the phone at a discounted price, you are required to enter into a contract with Verizon (presumably 2 years). This contract will require that you maintain your service at what will likely be a pre-set minimum service plan at x$ per month for the length contract term. If you want to cancel within the contract term, you must pay Verizon an Early Termination Fee (or ETF).

    On top of the Verizon ETF, you may be liable to Google for an ETF (they call it an "equipment recovery fee") (currently $150) if you cancel your Verizon service within the first 180 days of buying the N1 at the subsidized price. This is so Google can recover the cost of selling you the phone at the subsidized price.

    There are a few considerations to take into account when making the choice to buy subsidized vs. unsubsidized -- especially for the Verizon version of the device. The current N1 model on T-Mobile supports worldwide GSM voice frequencies and most GSM 3G data frequencies except for AT&T (will only run on edge) in the US. This means I can use it on any provider that supports those frequencies by popping in the respective sim. There is still a big question with respect to the Verizon version of the device - will it be a dual CDMA (the network technology Verizon uses) AND GSM device (i.e. a "world phone") or will it be CDMA only? If the later proved to be true, there may be very little benefit to buying it unsubsidized given that you can't use it on any other network.

    Ultimately you have to do the math when the pricing comes out. The right choice depends on a lot of factors that are personal to you.
  3. cigar3tte

    cigar3tte Well-Known Member

    Buying for $530 w/o contract means you just buy the phone. You need to add a service plan from Verizon along with it in order to use it to talk/browse/text/etc.

    You'd pay monthly for a phone plan that includes data. TMO has plans that are cheaper per month if you have your own phone. I don't even know if Verizon would give you a plan that don't lock you in for 1 or 2 years.

    Insurance can be obtained from 3rd party from what I've read.
  4. MariposaNegra17

    MariposaNegra17 Well-Known Member

    So basically the only difference is that I could cancel early without penalty if I got the one for $529.00?

    Thank you! =D
  5. cigar3tte

    cigar3tte Well-Known Member

    Does Verizon offer month-to-month plans w/o contract?
  6. MariposaNegra17

    MariposaNegra17 Well-Known Member

  7. Bob Loblaw1

    Bob Loblaw1 Well-Known Member

    I don't know but the title of this thread sure is funny! Like Kramer vs. Kramer.:) (I may be showing my age with that one!)
  8. QrafTee

    QrafTee Well-Known Member

    I don't know if Verizon will still offer insurance for an unsubsidized phone, but you can always use services like SquareTrade to insure your phone.

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