Verizon axes one-year smartphone contract

Posted by Lydia Leavitt

Verizon may have accrued some seriously cool points for picking up the iPhone, but the carrier lost them all by eliminating its one-year contract plan.

That's right - Verizon has confirmed it will eliminate the option of signing up for a one-year contract beginning on April 17th.

"The reason behind the change is the greater majority of customers sign up for a two-year contract and take advantage of the discounted (promotion) price," a Verizon Wireless spokesperson told BGR in an email.

Most of Verizon smartphones are discounted if you purchase a two year plan.

However, the one year plan allowed customers to purchase the hardware at "full price" - a number often hundred of dollars higher than the two-year plan price.

Unfortunately, after April 17th, the one-year plan will no longer be an option. 

For example, the 32Gb iPhone 4 on the Verizon Wireless network costs $299.99 with a two-year contract. If you were to purchase the hardware itself without a contract, the same phone would cost you $749.99.

That’s a $500 difference!

"Customers will still have the option of choosing month to month, prepaid or service with a two-year contract," the email said.

So, if you’re hoping to avoid a death grip two-year contract, then perhaps Verizon Wireless is not the company you need.