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Verizon Edge: How the Trade-in Plan Stacks Up Against the Competition

by Fox Van Allen on July 18, 2013

SmartphoneToday, Verizon unveiled its new Edge plan, making it the latest carrier to jump on the phone trade-in bandwagon.

The fine print of the plan requires you to make 24 monthly payments toward the full off-contract purchase price of your phone. Verizon will let you trade-in your device and get a new one after just 6 months, but your old phone will need to be at least 50% paid off before you can do so.

Like with T-Mobile’s Jump! and AT&T’s Next plans, you’re not locked in to a two-year contract. But you also miss out on Verizon’s two-year contract discount. This is no small detail – Verizon’s phone service is more expensive per month than T-Mobile because that phone subsidy is priced in to the Verizon’s existing plans.

But don’t just take my word for it. Take a look at how Verizon’s Edge plan stacks up with the competition after two years of unlimited talk and text service. These calculations assume you want to get a new top-tier smartphone like the iPhone 5 every 12 months.

Verizon EdgeVerizon Edge

Read more about the Verizon Edge plan.

Upfront cost of a new iPhone 5: $0
Monthly device payment: $27.08/mo. for 12 months, or $325.00
Upfront cost of your next phone in 2014: $0
Monthly device payment: $27.08/mo. for 12 months, or $325.00
Unlimited talk, text, and 2GB of data: $100.00/mo. for 24 months, or $2,400.00

Total cost of Verizon Edge after 2 years: $3,050.00 plus tax

Verizon Standard 2-year Contract

Upfront cost of a new iPhone 5: $199.99 (subsidized)
Upgrade/new activation fee: $30.00
Resale value of your old iPhone 5: -$300.00 (estimated)
Upfront cost of your next phone in 2014: $649.99 (unsubsidized)
Resale value of your next phone: -$300.00 (estimated)
Unlimited talk, text, and 2GB of data: $100.00/mo. for 24 months, or $2,400.00

Total cost of Verizon’s standard 2-year contract: $2,679.98 plus tax

AT&T NextAT&T Next

Read more about the AT&T Next plan.

Upfront cost of a new iPhone 5: $0
Monthly device payment: $32.50/mo. for 12 months, or $390.00
Upfront cost of your next phone in 2014: $0
Monthly device payment: $32.50/mo. for 12 months, or $390.00
Unlimited talk, text, and 3GB* of data: $119.99/mo. for 24 months, or $2,879.76

Total cost of AT&T Next after 2 years: $3,659.76 plus tax

*AT&T does not offer a 2GB data plan.

AT&T Standard 2-year Contract

Upfront cost of a new iPhone 5: $199.99 (subsidized)
Upgrade/new activation fee: $36.00
Resale value of your old iPhone 5: -$300.00 (estimated)
Upfront cost of your next phone in 2014: $649.99 (unsubsidized)
Resale value of your next phone: -$300.00 (estimated)
Unlimited talk, text, and 3GB* of data: $119.99/mo. for 24 months, or $2,879.76

Total cost of AT&T’s standard 2-year contract: $3,165.74 plus tax

*AT&T does not offer a 2GB data plan.

T-Mobile Jump!T-Mobile Jump!

Read more about the T-Mobile's Jump plan.

Upfront cost of a new iPhone 5: $145.99
SIM card fee: $10.00
Monthly device payment: $21/mo. for 12 months, or $252.00
Upfront cost of your next phone in 2014 (estimated): $145.99
Monthly device payment: $21/mo. for 12 months, or $252.00
T-Mobile Jump plan cost: $10/mo. for 24 months, or $240.00
Unlimited talk, text and 2GB of data: $60/mo. for 24 months, or $1,440.00

Total cost of T-Mobile Jump! after 2 years: $2,485.98 plus tax

Note: T-Mobile does not offer two-year contracts.

So, class, what did we learn?

Well, first of all, we've learned that cell phone service is expensive. Yikes!

When it comes down to price alone, T-Mobile’s Jump! plan is the clear winner. The phones themselves are pricer at the carrier, but service is far cheaper. This is because, as said, AT&T and Verizon build the price of phone subsidies into their service plans. Next and Edge subscribers wind up paying for a subsidy that they don’t even get.

AT&T and Verizon’s standard two-year contract plans are a bit pricer than T-Mobile’s, but that’s to be expected. They’re premium carriers with better service. Verizon boasts a largely complete nationwide 4G LTE network; AT&T claims their 4G is the fastest and most reliable (where you can get it). Whether or not their increased cost is worth it, well – that’s up to you and how much you prize fast and consistent data service.

Perhaps the most important lesson here is this: Verizon and AT&T’s new trade-in plans may be convenient, but they’re costly in the long run. You’re better off staying with your current contracts and selling your old smartphones when you buy a new one. As you can see, you’ll save a bundle.

Verizon will begin offering Edge August 25. You must have a Verizon “Share Everything” plan to take advantage, however – those with grandfathered unlimited data plans need not apply.


Topics

Phones and Mobile, News, Cell Phones, Blog, Shopping


Discussion loading

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From Michelle on July 22, 2013 :: 11:28 am


I’ve been considering switching to Walmart’s unlimited talk, text, and data plan for $50 a month. You have to buy the phone, but it appears I’ll save a bundle. Am I missing anything here???

Reply

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From HRSweet on July 22, 2013 :: 11:35 am


I am using a service at P-tel.com for which I pay $10 every two months.  From that is debited 5 cents per minute for calls.  I also get all of the smart phone goodies as well.  For a casual user, this is as good a deal as you will find.

Reply

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From CT on July 23, 2013 :: 9:04 am


Does anyone use Zact or Ting?

They seem promising, especially for low volume users, but almost to good to be true.

Reply

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