Verizon scraps 1-year contracts, cites lack of interest

Verizon Wireless (NYSE:VZ) will stop offering one-year contracts to new and upgrading customers beginning April 17, citing a lack of customer interest in the option as a key factor for doing away with the plans.

Verizon spokeswoman Brenda Raney confirmed the change to FierceWireless. "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," she said. "Customers will still have the option of choosing month-to-month, prepaid or service with a two-year contract."

Customers who have existing one-year contracts will not be affected by the change, nor will customers who sign a one-year contract prior to April 17. News of the change was first reported by the site Gadget U.

AT&T Mobility (NYSE:T) still offers one-year contracts, though spokesman Mark Siegel said the company primarily emphasizes two-year contracts. He said two-year contracts give customers the best device discount.

In January, Verizon ended its "New Every Two" phone upgrade program, which gave existing customers a credit of $30 to $100 toward the purchase of a new phone on contract every two years. Verizon stopped offering the credit to new subscribers and will not re-enroll subscribers in the program once they use the credit.

Most carriers that offer postpaid service have turned away from one-year contracts in favor of two-year agreements. Sprint Nextel (NYSE:S) and T-Mobile USA currently do not offer one-year contracts.

For more:
- see this Gadget U article

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