This is a discussion on Ending contract within the LG Ally forums, part of the LG Android Phones category; Originally Posted by kratom420 I was wondering about something similar. I bought my ally in July and my contract end in 2012. If I wanted ...
Here's some thoughts on this.....we will assume we're talking about the 2 year contract, which most people opt for to get the much discounted price.
This works both ways, for Verizon they insure another customer (and therefore a payment each month) for 2 years,...and for the customer, they get, as BMB pointed out, a top-of-the-line cellphone with a retail price of up to 649 dollars for 150 or less. Many of the phones they will give you free, and I saw a smartphone for 20 dollars. Verizon offers the deep discounts to attract you to their wireless services, among other things and to "sign you up". It also protects the person signing the contract from price increases for the 2 year period. After you sign the contract, activate the phone on the Verizon network (in the case of the Ally you have no choice) and have been using it and paying your bill each month, Verizon cannot call you 7 months later and say....hey ya know that 29.99 data plan you bought,...well it's 44.95 now. At least not until your 2 year contract is fulfilled. It's an agreement between Verizon and you,...and if you want out early Verizon wants 350 dollars back to cover the incentives they offered you. The early termination fee is much less for multi-media and simple feature phones...I think half,...or 175 dollars.
It provides benefits for both parties, and at the end of your 2 year contract, Verizon will offer you the phone of your choice for little or nothing to encourage you to re-new your 2 year contract.
That way everybodys happy! We get the strongest, most reliable network in America to use our new superphones on, Verizon gets a whole lotta money each month, and the cellphone factory sells a whole lotta phones.
Don't cha just love it, when a plan comes together.
Yes, you can. Just activate a regular phone (aka "dumbphone") on the line and you aren't required to have the data plan. The ETF doesn't downgrade, but as long as you have a phone activated on your line, you are honoring the contract.
I tried to downgrade to a non-smartphone, and I just couldn't do without having the web, email, etc
Verizon's lowest talk only plan is $39.99. You would have to pay that until the contract is up. 24 x $40 is $960. It would be cheaper at this point to just pay the ETF.
Motorola Droid 4
Great answer/explanation, Minty. I would add only one thing, since I took advantage of it myself to get my Ally. The two-year contract is linked to Verizon's New-Every-Two promotion, where they "give" the customer $100-$200 toward the purchase of a new phone and a new 2-year contract. What they don't publicize a lot is that, if you're really hot for the latest, greatest phone and you've reached the one-year point in your two-year contract, you can upgrade your phone at the promotional prices on the Verizon Web site (those prices are tied to a new, two-year contract, of course). I upgraded to the Ally after one year into my contract, which meant I got the Ally for the online price of $50, but I wasn't eligible to go to Wal-Mart and buy the same phone for $30. That kind of sucks, but obviously it wasn't a huge concern. If I had really wanted to buy a more-expensive Android-based phone, I would have waited until the end of my contract and used the allowance to defray the cost.
I was told by a Verizon rep that I could downgrade back to my Voyager and cancel the data plan completely if I needed to. I wanted to check before upgrading just in case I found that I couldn't afford the data plan.
My understanding is that your contract is tied to your phone plan, the data plan is an "added feature" like a text package or ringback tones, and can be dropped at any time if you switch to a dumbphone. As long as you have some sort of phone activated on the line, you are honoring your contract. This is based on my experience as well as what I have been told by customer service.
I guess they lied to me because I specifically asked them that if I discovered after the first couple months or so that I couldn't afford the data plan, could I switch back to my Voyager and I was told that I could. I guess it is possible they told me that to get a sale....likes salesmen typically do.