After years of being one of the few carriers to actively offer and advertise the option to sign on to a year agreement for service with a subsidy, Verizon Wireless has confirmed in a press note that it will eliminate the 1 year contract option due to “customer demand” on April 17th.
"Keep in mind, a majority of our customers select a two-year contract when buying our devices, so we are responding to what our customers want. They still have options available, such as two-year contracts, month-to-month and prepaid plans."
The 1 year agreement has been a staple of Verizon Wireless service offerings over the past few years and was quite popular with enthusiasts and consumers for its flexibility compared to the now ubiquitous and increasingly inflexible 2 year agreement. Verizon also offered a subsidy on 1 year terms, but it was not as deep as the 2 year subsidy, typically falling between $50-$150 more than the 2 year pricing for the same device.
With the elimination of the 1 year agreement, Verizon has eliminated both a competitive bullet point and a consumer friendly choice from its offerings. Despite featuring deeper subsidies on 2 year agreements, more competitive prepaid and hybrid monthly plans, those also stand to be affected by the elimination of the 1 year agreement.
