Verizon has apparently reduced the number of phones subject to the $350 early termination fee for advanced devices.     This termination fee, double the standard $175, was added for new contracts and renewals associated with these devices as of November 15, 2009.   The current list appears to be limited to smartphones (including BlackBerry and Android devices) and netbooks.   A review of a prior version of the schedule showed that as of last Friday this list contained a number of multimedia devices such as the LG enV Touch and Samsung Rogue.

MyRatePlan Analysis: If there is justification for a higher early termination fee, this new shorter list of devices makes more sense.   Verizon has been taking some political heat for the higher termination fees.  In their response to an FCC inquiry last month, Verizon talked at length about the large amount of subsidy below cost  for these devices (vs. other phones), saying that this amount alone justified the higher early termination fee.     Some of the devices removed likely cost Verizon quite a bit less than true smartphones.   In addition, Verizon has introduced new pricing this week requiring a data plan of at least $9.99/month on several of the removed devices.   It is possible that the incremental revenue associated with this new pricing structure also led to the pullback in what is considered an ‘advanced device’.

On a related note, check out our new termination fee calculator.

AT&T and Verizon have lowered their unlimited pricing to $69.99/month, $89.99 for unlimited voice & text, $99.99 for unlimited voice, text and data.   Similar decreases are also in effect on the family plan side, where two unlimited lines are $119.99 vs. the previous $199.99.   This is a decrease of about 30% for a single line, 40% for a family plan. Verizon also reduced its 2,100 minute plan to 2,000 minutes, and cut the price by $10.  The carriers are allowing customers to change to these rate plans with no penalty or contract extension.

• If your rate plan is more than the above amounts, contact the carrier directly to switch, subject to the exceptions in the list below.   For customers who have gotten a rate plan in the last couple years, most people on a 1,350 minute or unlimited single line plan will benefit, as will most on a family plan higher than 2,100 minutes.  Verizon customers on a 2,100 minute plan who don’t use more than 2,000 minutes can save $10 a month by switching to the 2,000 minute family plan.

1. If your carrier is AT&T and your phone is a ‘quick messaging’ device (basically a non-smartphone with a QWERTY keyboard) and you do not currently have text and/or data bundle, AT&T may make you add some combination of these these that totals $20 or more per month ($30 for a family plan).   That would reduce or eliminate your savings.
2. If your carrier is Verizon and your phone is a 3G multimedia device (currrently LG enV Touch, Samsung Rogue, LG Chocolate Touch, LG enV3, LG VX8360, Motorola Entice, Nokia Twist, Samsung Alias 2), and you do not currently have a data plan, Verizon may make you add a $9.99 data plan (for each of these phones on the plan).  That would reduce or eliminate your savings.
3. If you are in the final two months of your contract or your contract is over, MyRatePlan can help you get a substantially discounted phone if you renew your contract online.    This is regardless of the rate plan you are currently on, but is subject to the requirements above.  AT&T offers ||  Verizon offers

Verizon Wireless announced significant price reductions for those customers looking for unlimited monthly service.  The new rates will be available January 18 for new customers.  Existing customers can also change their rate plans as of that date with no penalty or contract extension.

We’ll have the new pricing up on the site Monday and you can compare it to other carrier plans using our CellCalc ^(TM) rate plan finder.

The major changes announced iclude:

• Price for unlimited voice plan drops from $99.99 to $69.99
• Unlimited voice + text drops from $119.99 to $89.99
• A $9.99 data plan will be required for new activations on all 3G multimedia phones.  These are phones, such as the LG enV 3 that provide a better data experience but don’t have an operating system that would qualify them as smartphones.
• Monthly prepaid plans will be available for $5 more than comparable postpaid plans.  Examples include $44.99 for 450 voice minutes to $124.99 for the unlimited voice + text listed above.

MyRatePlan Analysis: This plan structure is similar to one introduced by T-Mobile a couple months back and is another step toward the day when there will basically be one plan for light users and unlimited for everyone else.   Verizon maintains a premium over T-Mobile pricing, although the difference will shrink considerably.  Perhaps perceived differences in network quality were not enough for consumers to justify paying  $99.99 for a service that was available for $50-60 everywhere else.   Since AT&T pricing structure was almost identical to Verizon’s, that carrier will likely be forced to modify rates in the weeks ahead.

Some of the revenue loss from this new pricing, to the extent it isn’t recouped by gaining market share, will be offset by the new $9.99 data plan requirement on 3G multimedia phones.  Currently, Verizon (and all national carriers) require a data plan on smartphone/BlackBerry devices that is roughly $30 a month.   Verizon is the first carrier to push that requirement onto this next tier of phones.   Since this list includes most of the popular Verizon phones, the effect is that almost all new Verizon customers will be required to have a data plan.

The new prepaid monthly plans provide a way for customers reticent to sign a contract to get full-blown service for about the same price as contract customers.  However, as is usually the case, we expect the phone prices to be significantly higher.   It also isn’t clear yet whether all phones will be available for no-contract service.   If they are, it will be a significant improvement from the limited inventory currently offered.   It is interesting to note that while T-Mobile offsets the higher phone cost of no-contract by having its plans priced $10 LESS per month than contract, Verizon’s new structure will still have prepaid priced higher than contract plans.

This Sunday, February 15th, Verizon will launch a new feature on select rate plans called “Friends & Family”. Similar to programs at T-Mobile (MyFaves) and Alltel (My Circle) — now owned by Verizon — customers will be allowed to select a group of numbers to whom they can make and receive calls, without the airtime counting against their monthly allowance. It will be available to both new and existing Verizon customers. Eligible single line plans will be able to choose 5 numbers, while eligible family plans can select 10 numbers.

MyRatePlan Analysis: As is usually the case with new wireless plan benefits, this one is more marketing smoke than actual fire. Few people will actually see their bills reduced. In fact, because the feature is not available on single lines under $59.99 or family plans under $89.99, the real winner will be Verizon — they will see a modest bump in their average customer revenue, an important financial metric in the wireless industry.

The new program should also yield higher profit per customer for Verizon, as the benefit for most customers will be minimal. For example, let’s take a look at a Verizon $59.99 plan. Today, this plan offers 900 anytime minutes, free unlimited nights and weekends and free unlimited mobile-to-mobile calling to the more than 80 million Verizon and Alltel wireless customers. This means there is no benefit whatsoever until a customer on that plan reaches their 900 minute allowance and makes a subsequent call that isn’t already free. Put another way, if you already have a plan with 900 minutes and you aren’t paying overage charges — move along, there’s nothing to see here.

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By the way, some may find the term “Friends & Family” familiar — it was a discount long distance program offered by MCI beginning in the early 90’s. Verizon acquired MCI, and the “Friends & Family” brand name in early 2005.

We are often asked about phones that are more accessible; the most common request is for an easy-to-use phone with larger keys and a display with larger fonts. Unfortunately, there haven’t been that many good solutions, as the focus of the carriers in the last couple years has been more sophisticated, ever-smaller devices that support various data services.

However, there is finally a good option: The Verizon Coupe.   This is a simple phone:  No camera, no music player, no Internet.  The Coupe has 3 buttons, labeled I, C & E (In Case of Emergency)…. use these for one-touch calling to 3 contacts.  There is also a dedicated 911 button.   The Coupe offers larger than normal fonts and keys.  As of this writing, the Coupe is just $39.99 with a two-year Verizon contract.

Verizon has also created a plan to go along with the Coupe.  Actually, you can get the plan with any phone, but you must be 65 or older.  Called “Nationwide 65 Plus”, this plan provides 200 anytime minutes, 500 night & weekend minutes, and unlimited free calling to other Verizon subscribers… all for just $29.99/month.  A family plan version of this plan is also available for $59.99/month; it includes 450 anytime minutes, 1,000 night & weekend minutes, and unlimited free calling to other Verizon subscribers.

Verizon Wireless has expanded its INpulse prepaid plan, and now offers three different varieties. Note that all the plans discussed below come with free mobile-to-mobile calling to all other Verizon Wireless subscribers. Also note that text message pricing is per message, whether received or sent.  Night calling referred to below is from 9PM to 6AM.

• INpulse Core: This plan is closest to the single plan previously offered, with one huge improvement. Previously, there was a 99¢ per day charge, whether you used the phone or not. That meant a minimum $30 bill each month, whether you used the phone or not. Now the 99¢ charge is only on the days you use the phone. with INpulse Core, all voice minutes are 10¢ each, as are text messages. We hate to make you do math, but INpulse Core is most economical if your total non-night voice minutes and text messages + double your night minutes is less than 20 on the days you use the phone.
• INpulse Plus: This plan comes with a $1.99 per day charge (on days you use the phone). The price per voice minute or text message drops to 5¢ each. The plan also offers free night calling. INpulse Plus is recommended for those using more than 20 minutes & text messages on the days you use the phone, unless you fall into the category recommended for the final plan.
• INpulse Power: This plan comes with a $2.99 per day charge (on days you use the phone). The price per voice minute or text message drops to 2¢ each and night calling is free. INpulse Power is recommended for those using more than 35 non-night minutes & text messages (anytime) per day on the days you use the phone.