A short while back we learned that Verizon Wireless would consider dropping the two-year agreements. This comment came by way of Verizon CEO Lowell McAdam. While this initially sounded like good news, it was really nothing more than the carrier saying this was something they would consider -- should it become something the customers began asking for. Well, flashing forward till today and it looks like we have a bit of follow up.
The latest is coming by way of a leaked memo and while it doesn't specifically address the contracts, it does address the item that would be the biggest side effect of not having a two-year agreement. By that we mean you will be losing the device subsidy and have to pay the full retail pricing. Anyway, as you can see from the image below, this memo is talking about a device payment plan.
Basically, this would mean you will be able to split the cost of the device out over twelve months. We have yet to hear anything official from Verizon, however the memo does have it noted as "launching soon." Time will tell how soon, or for that matter, if it comes. In the meantime, this could make for a nice way to stop the two-year cycle.
While device prices vary, lets use the Galaxy Note II as an example. Verizon has this handset priced at $299.99 on a two-year agreement with the full retail sitting at $699.99. Based on a twelve month payment option, you would be looking at monthly payments of roughly $58. While close to $60 extra per month is a big jump in addition to your regular monthly service bill, at least you would be done after a year. Then from here you would be free to keep using the device or sell it and use the cash towards something new.