Verizon Ditches "New Every 2" Upgrade Perk Sunday

Verizon's announcement Tuesday that it would soon be offering the new iPhone whipped many current iPhone owners into a froth of excitement and preparation.

Until this week, the only cell phone company that carried the iPhone was AT&T. Many customers grew weary of the constant dropped calls and slow data service that AT&T has become known for.

Now, many of those customers are eager to give their business to Verizon, who has long been known for their large coverage areas and reliable service.

Seems like a no-brainer, right?

Maybe not. Consumers who plan to jump ship to Verizon -- especially those who like to buy a brand new phone every two years at a discount -- should be warned exactly what they’re getting into.

Contract changes

Smartmoney.com reported Wednesday that Verizon has quietly made some changes to the terms of its upgrade policy. Most notably, as of January 16, 2011, new customers will not be enrolled in Verizon’s “New Every 2” incentive program at the end of their two-year contract.

The New Every 2 program offers Verizon subscribers a credit of $30 to $100 toward a new phone every two years if they agree to sign a new, two-year contract.

The NE2 program has been a perk many customers have enjoyed, considering cell phone technology evolves exponentially every year.

Higher price

But starting Sunday, that perk is gone -- unless new customers choose the pricier option of a one-year contract.

(And we do mean "pricier." For example, as a new customer, choosing the HTC Droid Incredible with a two-year contract saves $200 right off the bat.)

Existing Verizon customers are allowed to get one more “NE2” upgrade if they’re currently eligible for it this year. (Whether they’ll be able to use their last NE2 upgrade towards the new iPhone is yet to be seen, however Verizon’s Support Twitter account recently tweeted they could.)

That’s all well and good for existing customers, but what about customers who are only a few months into their new, two-year contracts? Or those who haven’t even signed up yet? They’re apparently out of luck.

Interestingly, Verizon appears to have been planning this since before Tuesday‘s big iPhone announcement.

The tech blog AndroidCentral.com posted a screen cap of training material sent out to Verizon employees, announcing the policy change back on January 4, 2011.

Consumer quandry

So, what does this mean for consumers signing up with Verizon for the new iPhone?

Once their two-year contract is up, and the newest iPhone undoubtedly hits the market, customers will most likely have to pay full retail price for it -- or any other phone, for that matter -- even if they agree to stay with Verizon for another two years.

For people who like to stay current with new phone technology, it could be a wallet-draining move.