Following last week’s announcement of a new Device Installment Plan for smartphones that resembled the current program used by T-Mobile, Verizon has officially amended a FAQ page through a Verizon spokesperson detailing how the program will work when it rolls out this Sunday.
The program will allow interested customers to purchase smartphones valued at $349.99 or higher as well as tablets, with monthly finance charges of $2.50 added to the 12 monthly installments, with the first installment and finance charge due at the time of purchase.
“The first installment and finance charge is due at the time of purchase. Subsequent installments and finance charges will appear on your monthly Verizon Wireless bill and will be listed separately from your other charges. Qualifying devices must be $349.99 or more per device, after all discounts and promotions and before taxes are applied.”
The only exceptions to the program is that a maximum of two devices will be allowed to be purchased at one time, with each paid off device allowing one more device to be purchased, though if service is terminated, the device(s) affected will continue to be billed for at the previous rates until they are paid off.
However the biggest caveat to the program is that the charges will be separated from already existing monthly costs on the current billing agreement, keeping in mind that the original purpose of the program was to allow new devices to be purchased without needing to rely on an agreement subsidy for those customers already under a service agreement.
The amended program is ostensibly a shot across the bow of T-Mobile’s current financing program, which allows customers to finance devices over 2 years without the need to sign a contract and the flexibility of either paying all at once or month to month, with monthly service rates being separated from the cost of devices.