Verizon gets rid of annual contracts for internet and TV

Key Points
  • Verizon said its dropping traditional cable bundles that are often bound by annual contracts and hidden fees in an attempt to prevent customers from cutting the cord. 
  • Under the new offering, customers choose internet and TV plans separately and pay by the month.
A woman looks at her phone in front of a Verizon Fios sign in Times Square in New York March 11, 2016.
Brendan McDermid | Reuters

Verizon is changing how it sells cable and internet by getting rid of annual contracts and letting customers pay by the month for the cable and internet plans they want, the company announced Thursday. Previously, customers could buy internet or cable separately but were often kept in a contract to get the best prices. After the contract expired, prices often increased.

Under the new pricing tiers, customers mix and match internet and TV plans.

There are three internet plans that range from $39.99 per month to $79.99 per month, depending on the speeds available where you live. Three cable TV plans range from $50 per month to $90 per month, and vary on how many channels you want.

Under the most expensive cable TV plan, Fios customers get access to more than 425 channels. Verizon is also offering YouTube TV as an option, which costs $49.99 per month after a one-month free trial and offers more than 70 channels.

The changes are an attempt to prevent customers from moving away from traditional cable TV and turning to cheaper streaming services that don't lock consumers into contracts.

Verizon still charges customers for things they don't have to pay for with streaming services, though, like monthly cable box rentals that start at $12 per month per box and are required if you sign up for one of the Fios TV services. Customers who sign up for YouTube TV don't have those fees, however.

Verizon CEO on a 5G cold war between U.S. and China: 'I hope not'
Verizon CEO on a 5G cold war between U.S. and China: 'I hope not'