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Verizon to end discount phone plan

AP

Verizon to end discount phone plan

NEW YORK — Verizon, the nation’s largest wireless provider, will stop offering phones at discounted prices when customers sign two-year service contracts.

All wireless carriers have been trying to wean customers off subsidies, in which a $649 iPhone 6 goes for $200 with a two-year contract. Instead, carriers have been encouraging people to buy phones outright by paying the full price in monthly installments.

Customers will be able to keep current plans, but it wasn’t immediately clear whether customers keeping the current plan still will qualify for subsidized phones.

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Under the new plans, which take effect Thursday, prices for voice, text, and data services will drop by roughly $20 per month compared with subsidized plans. But customers will no longer get the subsidies on the phone, valued at about $19 for an iPhone 6.

Verizon is also streamlining its data plans to four main options, ranging from “small” at 1 gigabyte to “x-large” at 12 gigabytes, all sharable under family plans. Verizon currently has 15 options ranging from 0.5 gigabyte to 100 gigabytes.

First Published August 8, 2015, 4:00 a.m.

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