New York, Apr 12 2011: Verizon Wireless announced that on Aprl 17th will drop the one year contract option for its new customers. What does this mean to you? If you are an existing Verizon client and your contract is up for renewal, you will now have only two options when buying new Verizon Phones: renew on a 2 year contract or go month to month on your existing plan.
Verizon Wireless also points out that there are Verizon Pre-Paid plans and trade-ins programs available to consumers. They point at low demand for the 1 year contract for their decision. We believe it's a combination of two factors: 1. high churn on U.S. clients is forcing most carriers to lock in their customers for longer periods. 2. Phone upgrades will be more price accessible as carriers typically can offer larger discounts when a client is committing for a longer period.
Either way consumers have lost one more choice and 2 year contracts are becoming the industry standard. Only one exception to this announcement: business and government accounts can still enjoy the 1 year contract option.