After contract rate breakdown

[Snn5]

On Edge, once the phone is paid off in full, your monthly bill drops by the amount you paid for the phone per month.  After contract, the rate stays the same on month to month.  If Edge is lowered X amount a month over More Everything plans to compensate for the phone cost and contracts include the cost of the phone and plan, why aren't month to month bills lower after contract end date?  Shouldn't the phone be paid off by then?  Isn't that what the ETF is for, to compensate for the phone cost if a customer leaves early?  What's the reason and breakdown?  I know the cost isn't too huge between 2 year on contract and 2 years payments on a phone plus plan.  Seems to me that there is more of a flat rate cost on contracts considering some phones are less in full value than others.  I also understand that someone buying a $600 phone upfront for $200 and a $600 on a promotional price of $99 eventually evens out for Verizon over time based on other customers paying different rates for the same phone.  Is it cut and dry or is it just a big strategy of charging more here to compensate for charging less there?

[rcschnoor · Accepted solution]

I suppose you aren't quite clear on what you are asking. Are you talking about an Edge contract or a 2yr service contract.

After you complete an Edge contract, your Edge discount, based upon your data allowance, falls off since you are no longer on Edge. You do qualify for a month to month discount, though, but that would have to be manually added after completion of your Edge contract.

After completing a 2yr service contract you are ALSO eligible for a month to month discount, but again, that would  have to me added manually.

So in reality, you CAN have your bill lower AFTER completing your contract. You just have to manually do it. For example, my bill has dropped by $75/month after I recently had 3 lines go off 2yr service contracts and I manually added a month to month discount on each line.

Of course, my reply assumes you are on a More Everything plan.

[Snn5]

OK, I can see Verizon raising the rate after an Edge phone is paid in full meaning that at the end of 2 years, or the phone is paid off, that they tack the previous savings back onto the bill meaning you pay the same as you always did.  I suppose I never knew about a month to month discount back when I was month to month and before this contract I'm on.  Has this month to month discount been advertised or is this something you just have to have stumbled upon or specifically asked about?

[rcschnoor]

The month to month discount is not advertised, but has been around since April of 2014 I believe. It is offered on the "Change Features" page of the account owner's MyVerizon account and has to be manually added. It will not automatically show up on anyone's account who is month to month.