Verizon did kill wireless contracts, but only for new customers

Verizon Wireless' announcement three weeks ago that it's no longer offering contracts and device subsidies was missing one caveat: customers who are still on contracts can continue to renew them and get new phones under the traditional subsidy model.

"Yes, Verizon customers can keep and renew their two-year contract, and take advantage of any subsidized devices we offer as part of that contract," Verizon said in a clarification it issued Wednesday. "A good example: you’ve been waiting to buy a soon-to-be-launched smartphone on Verizon’s network. Yes, you can renew your current contract once that cool new handset launches—and take advantage of subsidized contract pricing."

Contract customers can also keep their current monthly price and buy a new device on an installment plan that spreads the cost over 24 months, interest free. The installment plan is the standard option for new customers.

Though contracts are seemingly going out of style, some people may want to keep them in order to get phone subsidies that can eliminate or dramatically reduce the upfront cost of a new device. Some longtime customers may also be on older price plans that are no longer available; those customers will be able to keep them.

"You can keep all the benefits of your current price plan—until you decide to change to the new Verizon Plan (but once you change, you cannot go back)," Verizon wrote.

Verizon's policy here is similar to the changes it made when it stopped offering unlimited data plans to new customers. Longtime customers who had unlimited data were allowed to keep it, though in that case purchasing a new subsidized phone could force a customer to switch to a limited data plan.

Verizon's newest plans cost $30 a month for unlimited talk and text plus 1GB of data that can be shared among multiple devices, $45 for 3GB, $60 for 6GB and $80 for 12GB. There are also monthly line access charges for each device a customer connects to the Verizon network. Those are $20 per month for each smartphone line, $10 per month for each tablet or hotspot, or $5 per month for smartwatches.

That accounts for all monthly charges (aside from miscellaneous taxes and fees) if you either bring your own device or purchase one outright. The installment plans for purchasing devices will add another line item to your bill.