Verizon offers contract-free service (See all news)

Verizon Wireless announced that, starting today, it will offer no-contract plans, meaning the consumers have the possibility of using its service without signing a one or two year contract. Customers that sign up for the new month to month service also have the option of either paying the full retail price for purchased cell phones or bring their own compatible CDMA handset, even if from another carrier.

This new option means a person can change service or upgrade their phone at any time, but, as always there are some trade offs, as carriers provide subsidies for their phones in exchange for the one or two-year contracts, so a no-contract phone is much more expensive.

For example, the Blackberry Curve from Verizon Wireless costs $100 with a contract, but $430 without any commitments. The contract option still remains for users who don't want to pay that much for their cell phones.

The good news is that, since there are no contracts to sign, customers can end their month to month agreement without any early termination fee at the end of each monthly period if they choose so. The option is available for all of Verizon's voice and data services.

We would like to remind you that Verizon Wireless was one of major carriers that got in legal problems over its former early termination fee practices. In July, the carrier agreed to settle all of its outstanding lawsuits for $21 million.