Verizon Confirms "New Every Two" Is Ending

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Last week, I told you about a rumor that Verizon was going to end a number of upgrade incentive programs – the big one being the “New Every Two” program that granted you early upgrade prices. The move was being done ahead of the iPhone arriving on the network, most likely due to the iPhone’s high unsubsidized price (which Verizon picks up) and a desire by VZW to lock iPhone customers in. Now, it’s been confirmed that Verizon is ending these programs.

BGR is reporting that as of January 16th – Verizon confirmed to them that they had discontinued the “New Every Two” program. The program gave loyal customers a credit for $100 off the upgrade price of a new phone, with a two-year contract renewal, of course. Further, Verizon had been allowing customers to upgrade to a new phone after just a year, according to BGR, if they signed a new two-year contract. Now, instead of waiting 12 months to get a new phone, you’ll have to wait 20 months (!).

New customers will not get any of these benefits, while existing customers can still earn or use their “New Every Two” credit in the next 24 months, but they won’t be re-entered into the program after they exercise their credit.

Although Verizon isn’t saying this, everybody and their mother knows this is related to the iPhone. The contract-free price of the iPhone is extremely high ($600-$800) and while AT&T and Verizon likely aren’t paying all of that to Apple, it is on record that they are paying a bit more for the subsidy than usual for a smartphone. Verizon is trying to protect their margins and their cash reserve. Just my take on the situation. Maybe they’re just a greedy company.

What’s your take on the situation?