Verizon Says Goodbye to your $200 iPhone

Following a trend started by T-Mobile, Verizon announced today that they were dropping their annual contract plans in favor of 4 new monthly options. Unlike most of the world, Americans have become accustomed to subsidized phones in return for lengthy contract commitments, but it looks like carriers won’t be offering that option for much longer. AT&T also announced plans to move away from contracts earlier this year.

The new plans differ only in the amount of monthly data allowed: 1GB ($30), 3GB ($45), 6GB ($60) and 12GB ($80). The plans can be shared with up to 10 devices, but each device has a flat monthly fee (smartphones $20, hotspots/tablets $10, other connected devices like smartwatches $5).

If you don’t want to pay for a new device up front, you can still participate in Verizon’s monthly installment plan, paying off the device over a two year period.

Don’t worry, if you’re a current annual contract subscriber, Verizon isn’t kicking you off your plan for now, although you do have the option of switching. The new plans go into effect August 13.