Verizon still wants to lock you into two-year contracts

verizon edge upgrade early news wireless

Last year, Verizon launched a plan called Edge in response to AT&T’s Next and T-Mobile’s Jump plans. Much like the latter two, Edge allows you to pay the full price of your phone through monthly installments, thus allowing you to opt out of traditional two-year contracts and upgrade your phone quicker. Even with Edge though, Verizon is still keen on selling you a handset, so long as you sign a two-year contract.

Over at the Deutsche Bank media conference in Florida, Verizon chief financial officer Fran Shammo said that even though Edge and More Everything plans are available to customers, they’re mainly available because of demand. If anything, Verizon still sticks to its traditional guns by preferring the traditional subsidy model.

“We believe that the subsidy model is an extremely good model,” said Shammo. “It has done wonders for us in this industry. So I think to abandon that is a mistake.” Even so, Verizon won’t force you into a two-year contract if you don’t want to – that’s what the Edge and More Everything plans are there for. “We aren’t going to force our customers into anything,” he added.

As for why Verizon has this mindset, Shammo lists several reasons, the first of which is Verizon wanting to take “a conservative approach” to phone financing plans. With Edge, Verizon wants to test the waters rather than go for a full swim, given that Verizon wants to see how many customers upgrade their handsets after the first 6-12 months.

In addition, Shammo points out that, for those on Edge that want to switch to a different carrier and didn’t finish paying off their smartphone, doing so causes a great financial burden in the form of a high bill. “It’s going to be a very dissatisfying thing for the customer at the end of the day if they feel like they want to leave and they end up with a very large bill,” said Shammo.

As such, while Verizon will continue to offer Edge and More Everything plans to customers, the company will continue to rely on the traditional subsidized phone plan until it analyzes the risks of moving away from such a model. For Verizon, this makes sense. Subsidized phones not only mean that you remain its customer for two years, but they also mean hidden phone costs in your bill. Sure, Verizon offers the choice to not have a two-year contract, but the writing is on the wall: for now, the traditional two-year contract is here to stay.

Android

The dramatic BlackBerry Key2 Red Edition is now available in the U.S.

BlackBerry's Key2 is likely to be the best keyboard-equipped phone in 2019, with a modern look, some powerful specs, and totally revamped features. Here's everything you need to know about it.
Mobile

Samsung Galaxy S10 update gives manual control of Bright Night mode

Samsung 2019 flagship smartphone lineup is here, and there aren't just two phones as usual — there are four. There's the Galaxy S10, S10 Plus, as well as a new entry called the S10e, as well as the Galaxy S10 5G.
Trash

Smash your carrier shackles with the best unlocked phones

If you want the freedom to switch carriers at will or you prefer to get your phone directly from the company that makes it, you'll want to buy an unlocked smartphone. These are the best unlocked phones you can buy in the U.S.
Mobile

Breaking news: Samsung responds to reported Galaxy Fold display issues

The Samsung Galaxy Fold has arrived, and it goes on sale soon. Folding out from a 4.6-inch display to a tablet-sized 7.3-inch display, this unique device has six cameras, two batteries, and special software to help you use multiple apps.
Mobile

The Department of Justice may prevent the T-Mobile-Sprint merger

T-Mobile and Sprint are getting closer to merging. After a few failed attempts, the two companies announced their merger at the start of 2018. The new T-Mobile could be better positioned to take on the likes of Verizon and AT&T.
Computing

Want to make calls across the internet for less? Try these great VOIP services

Voice over IP services are getting more and more popular, but there are still a few that stand above the pack. In this guide, we'll give you a few options for the best VOIP services for home and business users.
Deals

Apple iPads and iPad Pros get price cuts up to $150 on Amazon

In the market for a new iPad? Now might be the time to buy -- Amazon has discounted a range of iPad models, including the 10.5-inch, 11-inch, and 12.9-inch iPad Pro models, plus the standard iPad.
Mobile

The Best iPhone 7 battery cases to give your phone some extra juice

The iPhone 7 doesn't have terrible battery life, but you never know when you'll need to juice up on the go. To help, here are the best iPhone 7 battery cases that can keep your smartphone charged and ready for long-term use.
Digital Trends Live

Digital Trends Live: Samsung Galaxy Fold woes, zombie pigs, and more

Today's topics: Samsung Galaxy Fold, Facebook A.I. voice assistants, YouTube comes to Fire TV, facial recognition on airline flights, the SpaceX DART program, Yale's zombie pigs, and much more!
Deals

The excellent Moto G6 is just $99 from Google Fi for a limited time

Getting a cheap smartphone can be a great way to squeeze value out of your dollars. Motorola's Moto G-range has always been good value, but never better than this: Get the Moto G6 for just $99 from Google Fi.
Mobile

Keep your huge phone beautiful with the best iPhone XS Max cases

Apple's iPhone XS Max might be the best large phone the company has ever released. But a bigger OLED display and body means there's more glass to crack. Keep your massive phone safe with the best iPhone XS Max cases.
Deals

Ultra Wideband is here, and you can use it with the 5G Moto Mod (and save $150)

5G is rolling out in the U.S., and Motorola’s Moto Z3 is one of the few phones that can use it. Select people can take advantage of Verizon’s 5G service and enjoy a $150 discount with the purchase of a Moto Z3 and 5G Moto Mod bundle.
Deals

The best Amazon Prime Day 2019 deals: Everything you need to know

Amazon Prime Day 2019 is still a few months off, but it's never too early to start preparing. We've been taking a look at the best discounts from previous Prime Days to give you our predictions of what to expect this year.
Mobile

The 15 most stylish iPhone docks and charging stands for your device

The right iPhone dock does more than just hold your phone. If you’re looking for the perfect dock for your bedroom, or one to sit discretely on your office desk, there’s a good chance you’ll find it here.