Buying an Icon Now: Is Verizon Edge a Ripoff?

[boovish]

We're on a family plan on Verizon: 6 lines, 12GB shared. All of us are on the 2-year contracts. 5 Windows Phone, 1 Android (sister). One of the lines is up today, meaning that my sister can finally ditch her Android and get a Windows Phone. She chose the Lumia Icon, but when she went to the store, the salesman talked her into doing Edge instead. I told her to go back and cancel Edge because I thought it was a rip off. Admittedly, I was basing this on outdated information from last year. Apparently, they have sweetened the deal a little bit that makes it much more difficult to determine if it's worth it or not. However, I wasn't in the store with her and thus, couldn't look at all the fine print and whatnot, but it sounds like this:
2-year contract: $99 for the phone + $40 per month for service
Edge program: $38 ($23 for the phone + $40 for the service - $25 monthly discount), and apparently she got quite a few accessories at a subsidized rate.

So, the salesman's argument was that it's actually cheaper for her every month to do the Edge program and she gets additional benefits like she can upgrade early. After he explained the benefits of Edge, he was asked to explain the benefits of the 2-year contract and his response was "There are no benefits", which seems unlikely. So, what's the nitty gritty on this? Is a 2-year contract better or is Edge better? My skeptical take on the whole thing is that if a for-profit corporation is trying this hard to convince people to switch from 2-year contracts to Edge that they're doing so because it's good for them not because it's good for consumers. So, I told her not to do Edge and go with the 2-year contract instead, but she opted for Edge. Who is right?

It is a complete ripoff. Not only do you have to pay 20 extra bucks a month, you don't even get to keep your device in the end.

 

[MikeSo]

It is a complete ripoff. Not only do you have to pay 20 extra bucks a month, you don't even get to keep your device in the end.

You didn't read any of the thread, did you?

 

[ScottGeek]

Bottom Line... YEAP... it's a ripoff! Do the math. This also true of AT&T Next. The goal is to lock people in who don't have a lot of up front money... Now in the land of Free Market Capitalism.. what happen to those that don't really have the money up front to buy things... or for that matter folks that cannot afford to buy things? Yeap, businesses screw them over... in cleaver interesting ways.

The best way to buy the over-priced phone is out right- it costs the most up front, but it's cheapest over the long term... next do the two-year... you're paying too much bend over plan... it's adds a bit to the cost and you're stuck with the carrier and device. And lastly, these Edge/Next schemes... if you don't want to do the math, search the web... people have done it for you.

Each one of these has it's pro's and con's... Best thing to do.. research research... be a wise buyer before you hand over the money!

~ScottGeek....

 

[MikeSo]

Bottom Line... YEAP... it's a ripoff! Do the math. This also true of AT&T Next. The goal is to lock people in who don't have a lot of up front money... Now in the land of Free Market Capitalism.. what happen to those that don't really have the money up front to buy things... or for that matter folks that cannot afford to buy things? Yeap, businesses screw them over... in cleaver interesting ways.

The best way to buy the over-priced phone is out right- it costs the most up front, but it's cheapest over the long term... next do the two-year... you're paying too much bend over plan... it's adds a bit to the cost and you're stuck with the carrier and device. And lastly, these Edge/Next schemes... if you don't want to do the math, search the web... people have done it for you.

Each one of these has it's pro's and con's... Best thing to do.. research research... be a wise buyer before you hand over the money!

~ScottGeek....

Why do you think this thread was started?

Have you done ANY research on what Next is, what the different costs are vs buying an Icon outright, on 2 or 1 year contract, etc? If you had, you would see that "YEAP... it's a ripoff! Do the math." is a ridiculous answer in all situations. You clearly didn't do the math for the situation posed in the OP. You might want to take your own advice.

Personally, I paid the upfront cost (sadly it was $199 when I bought it :/) and got the 1GB plan for $60/month, so the math for Next didn't add up for me (I plan on keeping it for 2 years minimum), and paying upfront for a device that is basically tied to one operator (in order to get full functionality) if you plan on keeping it for a long time is just a waste of money. But for some, such as the OP, the math works out differently.

 

[xboxonthego3]

If you want to upgrade every year. This deal is worth it. I am on it now. But it depends which data plan. I am on a 10gb.

 

[MazoMark]

My plan is to pay off my Icon within the next month or so and go prepaid.

Is there a prepaid option on Verizon that offers LTE? Last time I checked, I couldn't find one.

 

[Tepid]

Bottom Line... YEAP... it's a ripoff! Do the math. This also true of AT&T Next. The goal is to lock people in who don't have a lot of up front money... Now in the land of Free Market Capitalism.. what happen to those that don't really have the money up front to buy things... or for that matter folks that cannot afford to buy things? Yeap, businesses screw them over... in cleaver interesting ways.

The best way to buy the over-priced phone is out right- it costs the most up front, but it's cheapest over the long term... next do the two-year... you're paying too much bend over plan... it's adds a bit to the cost and you're stuck with the carrier and device. And lastly, these Edge/Next schemes... if you don't want to do the math, search the web... people have done it for you.

Each one of these has it's pro's and con's... Best thing to do.. research research... be a wise buyer before you hand over the money!

~ScottGeek....

Oh yes, free market capitalism, that evil concept that screws the little guy all the time.


If you can't afford it you don't need it.

It's the subsidy that screw everyone

 

[airjeff]

I looked at it very closely a couple months ago. Here are some thoughts.

- to consider it you need 10GB of data to get the larger discount
- you can't switch phones on a line until the phone is paid for...so if you break it, you can't swap out for a spare.(and still make the edge payments) You have to get your phone repaired, pay off the remainder or pay the need amount to get you to the next upgrade early. All-in-all not too bad, but something to consider.
- really pays off if you like new phones. you can pretty much get a new phone every year for about the price of the standard 2yr rotation on a contract. Again, depends on your plan if it works out this way. **edit** I I think I forgot to factor in the fact you don't get to sell your old phone, but I never do that anyway.
- It is an awesome deal if you own your phone outright and get the $25/line discount. That means it's only $15/mo per line + data.

In the end we didn't go with it. We have 10 lines, but only 3GB of data. So, without the bigger discount it didn't make sense. Also at the time it was only a $20 discount and no discount once the device was paid off. But depending on your needs the Edge program can save $$.

 

[ScottGeek]

Why do you think this thread was started?

So people can add their comments and observations to the discussion? It's called a Forum...

fo?rum
ˈf?rəm/Submit
noun
1. a place, meeting, or medium where ideas and views on a particular issue can be exchanged.

Yeap, I'm thinking that's the why... like the opinion in my comments... one does not require any agreement either with my opinion or the "why" I think the thread was started. :amaze:

Indeed, these plans deal with up front cost so people can get the latest greatest... or even just get a high end phone... this does work for lots of people. This does not mean it's the best choice... the latest twists on these plans is the addition of data usage discounts... this is the effort to make the apparent month-to-month cost look even better. There are paths through these plans that are cost effective...you just have to make sure you follow the restrictions.

Personally, I already get as good a data plan discount with my "two-year own the device" route... I don't need another month-to-month subscription for a device I'm not going to own... plus I don't need the latest... at the end of contracts I sign, I look and measure to see if the latest really gives me anything over what I have... sometimes it does.... most times it doesn't (my phones are high end quad-core devices with lots of memory- not iPhones) But that's all me... that's not true for some of the people who have commented that they like these plans and that these plans are worth it to them....

btw, got the speeches from both Verizon and AT&T about these plans... before they changed, changes they were thinking about, and what the current changes are in the rules (it helps being related to a Mobile Manager whose expert in this stuff)... :amaze:.


~ScottGeek.

 

[boovish]

This is first person experience.

 

[Robinsonmac]

The OP will need a minimum $2750 to buy 5 phones up front. Pay $40 per line access fee plus the data plan cost. The 10 GB plan is $100, that's $2750 up front plus $300 per month.

On the Edge the OP will need $0 down to get the phones except the sales tax for the total price of each phone. Lets call it $10 for each phone. Pay $15 per line access fee plus the data plan cost plus the intrest free monthly payment for each phone(the Icon is $23.06). The 10 GB plan is $100, that's $50 up front plus $290.30 per month.

When buying the phone up front if you want to upgrade you have to sell the phone & hope you get at least 1/2 what you paid for it (the older it is the less likely that will be for WP, Iphones hold their value better, in one year you will be lucky to get $250 for the ICON) Lets say you get $300 1 year from now, to upgrade to a new phone you will have to pay at least $250 per phone(asuming the new phone is $550)

On Edge you can Edge up to a new deivce after 30 days as long as 1/2 the cost of the phone is paid & you trade in your phone(you are only required to trade in your phone if you have only paid 1/2 the cost). OR you can pay off the phone, keep the discounts, sell the phone for $300(keep the cash) & Edge up to a new phone when ever you want(you get to Edge up for $0 since you paid off your phone)


How is that a rip off??

 

[Blacklac]

I just paid ~$30 "taxes" for a 1520 on Next, so...

 

[Robinsonmac]

So that means you live in a state that has really high sales tax. Tax where I live is only 4.166%. Ist's still cheaper to pay $30 sales tax per phone up front than $550, So....

 

[Blacklac]

Yup, ~6%. Figured it was worth pointing out though, as an extra $20 per device adds up if were talking multiple.

It was still worth it to me. My old Plan was ATT's 3GB Data Pro. Moved to there Mobile Share, basically the same plan, but either use Next or you buy the device. With Next, my monthly bill is nearly identical, but I now get a new phone in half the time. Sure, if I ever wanna switch, ill have to either wait til my last phone is paid off or pay it off outright. No biggie.

 

[coip]

So that means you live in a state that has really high sales tax. Tax where I live is only 4.166%. Ist's still cheaper to pay $30 sales tax per phone up front than $550, So....

Just to clarify, no one iis advocating buying the phone outright at the start and then paying the $40 per month. That may be the norm elsewhere, but in the U.S. 2-year contracts subsidize the phone. You can get an Icon right now for $99 if you sign a two-year contract, so your previous calculations should consider that.

It sounds like, the big benefit of contract over Edge is that you own your phone, but after two years on Edge don't you also own it? So what's the difference, especially if, for those on a 10GB or higher plan, the $23 Edge fee for the Icon plus the $15 monthly fee (instead of $40) means you're actually paying $3 less per month per line with the benefit of trading in early at 1 year for a new phone or keeping it for 2 years and having the same end result: you now own the phone and you paid less for it (no $99 down payment, plus $3 less per month). Am I understanding that correctly?

 

[DatabaseMX]

Different Take
For my Icon, I went with the Edge plan for one main reason:
The Icon does *not* have a removable battery!
If the Icon (or any) battery lasts 1 year, I will be amazed and very happy.
I've had plenty of issues with batteries in other phones over the years.
If the Icon battery starts to get borderline toward the end of one year, then I have an out.
And of course, should I want to upgrade to some new hot phone, then I see that as easier with the Edge Plan.

So, I guess you could say I'm on the Edge!
​===

 

[loki993]

The best way to buy the over-priced phone is out right- it costs the most up front, but it's cheapest over the long term...
~ScottGeek....

It really isnt though..if you buy the phone outright your still paying that monthly subsidy fee.....but you do get to be month to month and keep unlimited data, if you still have it, if thats important to you its worth it.

And the phones arent overpriced....the Icon was actually 50 bucks less then anywhere else when I was looking...

 

[Robinsonmac]

Just to clarify, no one iis advocating buying the phone outright at the start and then paying the $40 per month. That may be the norm elsewhere, but in the U.S. 2-year contracts subsidize the phone. You can get an Icon right now for $99 if you sign a two-year contract, so your previous calculations should consider that.

It sounds like, the big benefit of contract over Edge is that you own your phone, but after two years on Edge don't you also own it? So what's the difference, especially if, for those on a 10GB or higher plan, the $23 Edge fee for the Icon plus the $15 monthly fee (instead of $40) means you're actually paying $3 less per month per line with the benefit of trading in early at 1 year for a new phone or keeping it for 2 years and having the same end result: you now own the phone and you paid less for it (no $99 down payment, plus $3 less per month). Am I understanding that correctly?

After 2 years on edge you OWN the phone. On contract you don't really own the phone until you pay the ETF for breaking the contract. And yes you got right it is $3 cheaper. Edge is just an interest free payment plan. If you pay off the loan early you keep the phone if you want to get a new one, if you have paid at least 1/2 the price of the phone you trade it in to get a new one. But on Edge you a $25 discount on the $40 access fee with a 10 GB data plan or $15 with a lower data plan.

 

[coip]

After 2 years on edge you OWN the phone. On contract you don't really own the phone until you pay the ETF for breaking the contract. And yes you got right it is $3 cheaper. Edge is just an interest free payment plan. If you pay off the loan early you keep the phone if you want to get a new one, if you have paid at least 1/2 the price of the phone you trade it in to get a new one. But on Edge you a $25 discount on the $40 access fee with a 10 GB data plan or $15 with a lower data plan.

What happens on Edge after 24 months? Do they still give you the $25 discount if you're on the 10GB+ plan? Or does it revert back to $40? If the former, you could really get a good deal on Edge if you hold onto your phone past 24 months, so I'm guessing the discount ends. Is that right?

 

[trivor]

Verizon is working really, really hard to get people off of Grandfathered plans. I have a really old (over 3 years) grandfathered family plan with corporate discount that is currently $82/month - 700 anytime minutes, one dumbphone (wife), one smartphone (grandfathered unlimited data plan, limited nights/weekends, unlimited Verizon network calls with pay for texts @ 15 cents/text. Neither one of us texts regularly (I use Google voice if I need to). Also, I get to upgrade my phone by using her upgrades (long thread on Android Central about keeping grandfathered unlisted data on Verizon) and we rarely go over 300 minutes a month (lots of minutes on Network or nights and weekends). If Verizon ever kills this plan for me my bill would go up 20-30% with a capped data plan. Whether this matters or not I don't abuse my unlimited plan (about 50/50 under 2 GB, and between 2-4 the other months) and if Verizon came to me and offered a tiered package for 4 GB @ $30/month (Tiered on my current plan is 2 GB) I would probably switch over so I didn't have to play the upgrade game to get a new phone. And, DON'T forget about taxes and fees for any of these plans - my bill is $82/month with everything included (taxes, fees, etc).. Everyone needs to run the numbers on their own (not in front of a salesman) to find out what is best for them. Also, Verizon has an excellent tool on their website (you need to be logged in) to determine your usage of Calls, Texts and Data over the last 6 months.