Verizon to Discontinue One-Year Contract Option

In less than a week’s time, potential Verizon customers are about to be devoid of a great postpaid deal from the network’s wireless phone subscriptions.

Come April 17 Verizon stated that it will no longer let subscribers choose a one-year contract for all of its phones. The remaining choices for customers are either paying for the full price for the phone and be billed for a month to month service or sign up a contract that lasts two years.

Without the 1-year option, people will now find it harder to own the latest phones available without spending in full for the advertised price, typically costing around $300 to $400, or get locked into a two-year contract. The only catch with the one-year contract was the additional $70 when compared to the two-year contract, an amount that can be compensated by the fact that customers can renew subscriptions with a better phone in just one year.

Verizon confirmed this announcement to the blog Boy Genius Report with a rather dubious reason that customers are opting for a two-year contract because of the discount price. Heck, I myself would rather choose a one-year contract. If you are an avid iPhone owner, you’d rather choose a one-year contract as well, in light of the fact that each year a new iPhone is available – although the Verizon’s iPhone 4 cannot be obtained under a one-year contract. The real reason actually lies in the financial interest of the wireless carrier.

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