Can you help me figure out Verizon?

Question

I have a Droid phone and am on month to month with Verizon.  When I tried to order an Iphone on the Verizon website, they told me there are no more contracts.  I found one for 99 cents with a 2 year contract.  I also found cheap ones on Target's site "with a 2 year contract."  The Verizon customer service online told me that those offers are invalid, because they don't use contracts anymore, and that I will have to make monthly payments for a phone if I need a new one.  I am approved for an "upgrade."

So my question is this:  Is there a way anymore to get a cheap i-phone?  We have good service with Verizon and like their coverage.  But why should I pay over $20 a month forever, when I see in at least two websites (Verizon's own and Target) that I can get a 2 year contract and cheap I-phone.

Thanks in advance.  I do like the Droid, except for a few issues with photos.

starrfyrre · Answer

They are no longer subsidizing the cost of the phone. When you pay a lower price for the phone, Verizon is subsidizing part of the cost, but makes up for it with higher costs on the contracts. Now they are no longer subsidizing the cost which means you pay full retail price, but in return your monthly cost of the contract is lower. They still use contracts, it's just that they no longer cover part of the cost of the phone.

Can you help me figure out Verizon?

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