Verizon Wireless recently announced that it will no longer offer contracts to new customers. Instead, customers will have to buy their phones outright or choose from one of Verizon’s monthly payment plans, which allow customers to spread the cost of their phone over a period of time. Here’s everything you need to know about Verizon’s decision.

Q: What does it mean that Verizon is abandoning contracts?

A: For years, wireless carriers offered discounted phones in exchange for a two-year contract. Customers would pay a lower upfront cost for their phones, but they would be locked into that carrier for two years. Now, Verizon is doing away with that system altogether. Instead, customers who want to use Verizon’s network will have to either pay full price for their phones upfront or choose a monthly payment plan.

Q: Why is Verizon doing this?

A: Verizon says that it’s simply responding to customer demand. Many customers no longer want to be locked into a two-year contract, and they don’t want to pay for their phones over time through the carrier. By offering a choice between paying full price upfront and choosing a monthly payment plan, Verizon is giving customers more flexibility in how they pay for their phones.

Q: How will this affect existing customers?

A: Existing Verizon customers who are under contract will not be affected by this change. They will continue to pay their monthly bills until their contract is up, at which point they will have the option to switch to one of Verizon’s new plans. However, Verizon has said that it will also offer existing customers the option to switch to one of the new plans early if they want to.

Q: Is Verizon the only carrier that’s doing away with contracts?

A: No. T-Mobile was the first carrier to abandon contracts, and other carriers like AT&T and Sprint have also followed suit. However, Verizon was the last major carrier to make the switch.

Q: What should I do if I’m in the market for a new phone and want to switch to Verizon?

A: If you’re in the market for a new phone and want to switch to Verizon, you’ll need to decide whether to pay full price for your phone upfront or choose one of Verizon’s monthly payment plans. Keep in mind that if you choose a monthly payment plan, you’ll still be paying the full cost of your phone, but you’ll be spreading that cost out over a longer period of time. Make sure to compare Verizon’s plans to those of other carriers to see which is the best deal for you.