An internal document leaked to Gadget University states that Verizon will no longer offer 1-year contracts for most of its customers. This change is expected to go into effect on April 17, 2011. The rules governing 2-year and month-to-month contracts will remain unchanged.
Verizon’s decision to abandon 1-year contracts is due to lack of customer interest. The company felt that since hardly anyone opts for a 1-year contract, it could encourage customers to try another option. Verizon will also eliminate advertisements promoting 1-year contracts. By doing this, Verizon believes customers won’t be as confused when faced with so many contract options.
Anyone who signs a 1-year agreement before April 17, 2011 won’t be asked to change their contract until their original contract has expired.
There are some customers who can still take advantage of 1-year contracts. These accounts are associated with businesses and government agencies.
AT&T also made changes to its 1-year contract policies. Instead of terminating it all together, AT&T rose prices.
Via [Gadget University]
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