T-Mobile’s “Jump” program which allows users to upgrade their devices every six months seems to be having an effect on the other carriers. On Tuesday, AT&T announced their “AT&T Next” program that allows users to purchase a new device every 12 months with no down payment, and no activation or upgrade fees. Meanwhile, an alleged training document from Verizon has been leaked, outlining a program dubbed “VZ Edge,” which will shorten the period customers have to wait between device upgrades.
Starting July 26, customers can purchase a smartphone or tablet with no down payment, pay a monthly fee for 20 months as part of their wireless bill, and have the option trade in the device after one year to upgrade to a new hardware. Upon trading in their device, the installment cycle for that unit ends, and a new 20 months starts based on the price of the new smartphone or tablet.
Customers can also opt out of an upgrade and pay the full 20 months of fees, varying from $15 to $50 a month, depending on the make and model of the device.
“With AT&T Next, customers can get the newest smartphone or tablet every year with no down payment,” said Ralph de la Vega, president and CEO of AT&T Mobility. “That’s hard to beat, and it’s an incredible value for customers who want the latest and greatest every year.”
For example, a new or existing AT&T customer can purchase a 16GB iPhone 5 and pay $32.50 per month for 12 months and trade in the unit for a next-gen iPhone model, with no further fees required beyond voice and data charges. Alternatively, the customer can opt to pay out the full 20 months, and keep the device. There is no additional charge for paying off the entire balance early.
An allegedly leaked training document from Verizon shows the #1 carrier in America is planning on debuting a plan called “VZ Edge,” which will shorten the period Verizon customers will have to wait between upgrades.
The document, entitled “VZ Edge Strategy,” outlines a no-contract payment plan that breaks up a smartphone’s initial cost into monthly installments, but still allows customers to upgrade to a newer model after 50 percent of the device is paid off, reports Droid Life. If the training guide is legitimate, Verizon is planning to launch VZ Edge by August 25.
Verizon’s plan looks similar to T-Mobile’s “Jump” initiative, allowing customers two upgrades each year for $10 per month. Users will be able to pay the same subsidized price for a device as a new customer would, skipping the usual upgrade eligibility cycle by paying the monthly fee.
