Verizon Wireless today announced Edge, its response to T-Mobile’s Jump! and AT&T Next.
The program lets customers finance handsets over time, as well as upgrade to new handsets as often as once every six months. According to Verizon, Edge spreads the retail cost of a cell phone, smartphone, or tablet over a 24-month period. Customers pick a phone and need to sign up for a month-to-month service plan. The retail cost of the phone is divided by 24 and customers must pay the first installment at the time of purchase. Customers who want to upgrade to new hardware need to wait at least six months and need to pay off half the retail cost of the phone before upgrading to a new one.
After the device is half paid, they can turn it in, choose a new device, and start all over again. For example, if a customer wants a Samsung Galaxy S4, they’ll need to make a downpayment of $27 dollars ($649 divided by 24) and then add $27 to their monthly service plan. After six months, they’ll have made $162 in payments. They’ll need to pay an additional $162 to cover half the GS4’s full retail price, and can then pick a new phone. According to Verizon, the new Edge program does not require a service contract, finance charges, or upgrade fees.
Verizon Edge will be available to customers on Share Everything plans starting August 25th.
