Verizon To Drop Phone Contracts, End Discounted Phones

It looks like a case of good news/bad news for Verizon Wireless customers.

The nation's largest wireless provider is doing away with contracts, allowing users to drop the service at any time. This would seem to be a popular move.

However, at the same time, the company also is eliminating subsidies for the purchase of phones that came along with the contract. This means customers joining Verizon will have to pay the full cost of their smartphone. For the high-end devices like the iPhone and the Samsung S6 that means a price of more than $600.

In a statement, Verizon says the new plans will be available in four forms:

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

As for buying a smartphone, Verizon says customers will only have two options: pay the full retail price at once or make a series of smaller payments. Currently, Verizon subsidizes the cost of a smartphone to offer a lower price.

Officials say existing customers will be able to keep current plans. However, it's not immediately clear whether customers keeping the current plan would still qualify for subsidized phones when their current contract expires.