Then, customers choose from one of the following four data packages:
- Small: $30/month for 1GB of shareable data
- Medium: $45/month for 3GB of shareable data
- Large: $60/month for 6GB of shareable data
- X-Large: $80/month for 12GB of shareable data
Each data package can be shared among up to 10 devices, including tablets and smartwatches, which will require a $10 and $5 monthly connection fee, respectively.
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The new Verizon price plans will be available starting on Aug. 13.
Gone are the days of Verizon subsidizing phones in exchange for people signing two-year contracts. Now customers will have to either sign up for a monthly payment plan to pay for their devices or buy them outright.
Already a Verizon customer? You'll be able to keep your current plan or switch to one of the new data packages.
Read MoreVerizon to buy AOL for $4.4B
John Legere, CEO of rival T-Mobile, which eliminated annual service contracts two years ago, did not mince words when tweeting about Verizon's announcement.