All of these plans offer one thing in common, and that is an option to pay differently for your smartphones and get upgrades more frequently than the old two-year contracts. When pricing out a phone, there’s the two-year contract price, then the full retail price. In Europe, and most of the world, customers pay full retail price for the phones. In the US, our carriers have offered subsidized phones, where you can buy a phone at a reduced price, but get locked into a two-year contract or pay an early termination fee if you decide to cancel.
With these plans, the carriers are looking at the full retail price of the phone and somehow rolling them into your monthly bill. They each have a different way of doing this. For Verizon’s Edge plan, you can make a down payment on your phone towards the full retail price, then the different will be divided up by 24-months onto your monthly bill. After 6 months, if you have 50% of the full retail price paid for, you can upgrade your phone and start all over again.
“Here’s how it works: Choose the phone you want and sign up for a month-to-month service plan, it’s as easy as that. The full retail price of the phone will be divided over 24 months and you’ll pay the first month at the time of purchase. If you want to upgrade after 6 months, just pay off 50% of the full retail price of the phone and you can choose a new phone and start all over again.
There are no long-term service contracts, finance charges or upgrade fees with Verizon Edge. Every six months, as long as 50 percent of the cost of the phone has been paid, you can upgrade to the newest basic or smartphone available.” – David Samberg for Verizon
– Make an optional down payment towards the phone
– The remaining balance gets divided by 24 months onto your monthly bills
– If, after 6 months, 50% of your phone is paid for, you can upgrade and start over
– No finance charges or upgrade fees
Source: Verizon Press Release