Verizon Wireless seems to have concluded that it makes sense to separate recurring service plans from device installment plans, and has launched a Device Payment Plan that offers the same advantages of phone subsidies, with the advantage of allowing Verizon Wireless to advertiser lower recurring monthly fees.
Under the new plans, consumers will buy their devices over a year, in installments, with a separate charge for service, as T-Mobile USA has done. It is not so clear that consumers actually will save money when using the new plans, especially if they change devices frequently.
But the marketing advantages are clear enough for Verizon. It will now be able to advertise lower monthly prices.
Monday, April 15, 2013
Verizon Adds New Device Installment Payment Plan
Gary Kim has been a digital infra analyst and journalist for more than 30 years, covering the business impact of technology, pre- and post-internet. He sees a similar evolution coming with AI. General-purpose technologies do not come along very often, but when they do, they change life, economies and industries.
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