Verizon Two Year Contract vs Month-to-Month Contract vs One Year Contract | Verizon Contract vs Prepaid Plans
Basically mobile operators have two main categories of services; they are prepaid and post-paid plans. (Difference Between Post-Paid and Pre-Paid) If you consider post paid plans it could be further defined into several plans like two-year contract(2 year), one-year contract(1 year) or month-to-month contract. Verizon Mobile was offering all these various plans in the past. Verizon has announced that they will be terminating one-year plan effecting from 17th of April. Still they continuously offer two-year plans and month-to-month plans to customers. Since mobile devices are being released almost day to day carriers want to lock customers into a contract or plans by offering good deals. Otherwise consumers will change their service from one carrier to another by looking at the benefits and features of the devices offer by each other. Mostly carriers offer free phones with two year plans and sign a contract to lock them in.
Verizon still continue to offer one year contracts to business customers, national accounts, federal accounts, government accounts and SME customers. And if you select one year contract before 17th of April 2011 will not be impacted until contract expires or decided to upgrade the plan.
Verizon Two-Year Contract
Verizon will continue their two year contract as earlier. Customers will be given very good deal on mobile handsets on two year contact. Some handsets will be offered for free with two year contracts. Verizon two year contract customers can upgrade their mobile handsets only after 20 months. (Theoretically 24 months but, as an offer Verizon allows in 20 months).
Advantages
- You can get mobile handset for free or cheaper rate when you get in to the contract.
- You don’t need to invest a big money to buy the latest smart phone handset.
Disadvantages
- You are bound to contract for 2 years.
- Early terminations fees apply if you break the contract before 24 months.
- Since Network Technology and Mobile Handset technology change almost day to day, you don’t have the flexibility to change carrier or mobile devices before 2 years.
- If some other carriers offer better deals for the same rate you are paying, you have limited flexibility to change.
Verizon Month-to-Month Contract
Verizon will continue to offer month-to-month plans for its consumers. Basically month-to-month is a post paid plan but no lock in contract. You have the flexibility to change plan, change carrier, flexible upgrade downgrade options. They will match the plans as two year plans. If you have your own handset, its always better to go with month-to-month contract since its more flexible and no early termination fee (ETF).
Advantages
- More flexibility to change plans or carriers when ever you want
- No early termination fee (ETF) will be applied if you quit the contract
Disadvantage
- You need to invest large amount on the handset at the initial days
- Some plans may be changed by carrier so if you are in monthly contract you may be compelled to terminate the plan and go for a new plan