Is The Verizon Edge Plan Worth The Money?

Posted September 27, 2013 9:04 am by with 3 comments

Verizon LogoAs I mentioned, I recently upgraded to the iPhone 5S. My carrier is Verizon.

The Verizon guy offered me every upsell he could. And, I get it. That’s his job.

He offered me $100 to buy my old iPhone 4S off me as part of the buy-back program. Ummm… no thanks. You realize I can sell the 4S for probably around $300 or so on Craigslist, right?

But, he also offered me the Verizon Edge program. This program is just like the AT&T Next, T-Mobile Jump or the Sprint One Up plans. The idea is that these plans allow you to upgrade your phone early if you want to always have the latest and greatest phone.

I tend to skip a generation. Apple releases new iPhones annually, but when it comes out I’m not always eligible for an upgrade under contract with Verizon. With the Verizon Edge plan, I could make the jump every time a new phone is released.

But, is it worth it?

If you go with a standard 2-year contract, then essentially the cost of your phone is being made up to Verizon over the course of the contract. That’s why you can get the phone for $199 (for the 16GB) versus the full retail price of $649.

Now, if I wanted to be able to upgrade to the iPhone 6 when it is released, Verizon thinks I should enroll in Verizon Edge. In addition to the cost of my plan, I now take on an additional monthly payment to pay for the phone itself. For the iPhone 5S, that’d be a monthly payment of $27.15 added to my bill.

If you upgrade your phone every year, then you’d be looking at a year-long cost which is exactly the same as buying the phone under contract. 11 months at $27.15 equals $298.5, which is the same as getting a 32 GB iPhone on contract.

On Edge, you can upgrade your phone every 6 months if you want to, but it makes no financial sense at all. You have to have paid off 50% of the cost of the phone to be eligible, so upgrading every 6 months would be like buying a phone at full retail cost every single year. So, instead of $299 for a phone for a standard contract, you’ll be paying about $1200 more. That’s $749 (retail for the 32GB) x 2 years = $1500.

So, essentially, it comes down to this…

  • If you’re going to upgrade once per year, your cost out of pocket is exactly the same either way you go. The only thing you will avoid is the $30 upgrade fee they charge when you upgrade using a subsidized phone.
  • If you’re going to try to upgrade every six month, you just like to spend money unnecessarily.

There you have it. :)

3 responses to Is The Verizon Edge Plan Worth The Money?

  1. marrach September 27th, 2013 at 10:15 am

    Plus…let’s face it: the age of “Oooh, the new phone has New Tech!” is over.

    For most average Users and quite a few Tech Users, A Smartphone is a SmartPhone is a Smartphone. What we really SHOULD be demanding from the Telecom’s is CONSISTENT CONNECTION SERVICE. I have a Cell-phone to use Communications and Dataplans. Maybe Verizon, T-Mobile etc should get OUT of the business of Selling Hardware and just focus on improving the connectivity/bandwidth of their Networks.

    In fact– maybe we should finally start hearing about SEPARATING the PHONES from the Telecom’s. I should be able to just MOVE MY PHONE to whatever Telecom will give me a better deal– not be FORCED to by a TELECOM specific phone by signing a 2 year phone/hardware contract.

    I’m still using the Original Droid that came out back in 2009. 4G maybe nice…but I, personally don’t need it. So I never saw a need to upgrade. And my 3G has always been sufficient for my mobile browsing needs.

    “New Every Two” isn’t about Technology Advancement…it’s MARKETING!

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  2. Gary March 15th, 2014 at 3:00 pm

    All I know is that it had gotten crazy and out of control. We buy a data plan and never come close to using the allotted gigs in a month.
    trying to figure out the best deals is an annual if not every 2 year head ache. You would think that as a 20 year user of Verizon, they would want to keep my rates as low as possible, but I guess loyalty is not part of business plans any more.
    my family’s cell phone bill is always a pill to swallow each month.

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  3. cindy September 18th, 2014 at 10:42 am

    I just upgraded to the verizon edge. I got $10 /month off my bill and 1gb free data/mo for 2 years with the Samsung Galaxy S5. This comes out to $480 savings for 2years. I purchased my phone for $642. Therefore my phone cost me $162 instead of the $199 and I do not have a contract. I can get an upgrade after 30 days or my phone is 60% paid for whichever comes first which I do not plan on doing. This will only be beneficial if I keep the phone for two years or sell it for the difference.

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