Last week Verizon announced a shocker – and not the news that they will be offering a CDMA, 3G, half-baked version of the iPhone in February. The real kicker is Verizon will be discontinuing their New Every Two (NE2) program which allows current Verizon customers to upgrade their phones every two years. The NE2 program also allowed Verizon customers to use an early credit to partially subsidize a new phone before the contract renewal date. This was especially beneficial to users on family plans. For example, my family of four constantly upgraded our phones to the shiniest new phone without paying an arm and a leg, allowing us to save those appendages for the phone bill.

We can all thank Verizon, now, for ending the program and leaving current customers to question what motivation remains for anyone to remain loyal and renew a contract with Verizon. Without the NE2, credits and discounts for phones that are, at best, barely competitive may not be enough to keep current customers on Verizon’s network. For those living in urban and suburban areas, ATT, T-mobile and Sprint have similar coverage – and each offers much better deals than Verizon.

Take ATT. Not only has ATT reduced the price of the 8GB iPhone 3Gs to $49, but all ATT iPhones support the ability to talk and use data at the same time, unlike Verizon’s CDMA-hobbled gear. And like I said before, ATT has a level of support for the iPhone that Verizon can’t offer. ATT’s pricing plan will look about the same as Verizon’s for the iPhone, but Verizon’s iPhone isn’t going to be the iPhone that those familiar with the device expect, let alone want.

Not only did Verizon screw over their customers by offering a half-baked version of the iPhone (which they had to do for compatibility issues); Verizon then turned around and axed the new every two deal which affected the 99.9% of other customers who couldn’t care less about the iPhone. Did Verizon think the iPhone would seal the deal and call the game over too soon? Verizon’s plans don’t even include a critical component that is generating some buzz; the lack of a data family plan. Not all mobile providers offer this, but Sprint is a shining example of a provider offering edgy smartphones with family plans that include unlimited data and deemphasizes talk (because who talks on the phone anymore?)

And for those ready to fly the coop, or have been flying solo all along, T-Mobile announced today a data plan for just $10 per line. Depending on how much you talk, this may work out cheaper than a family plan in the end. It is also a fiercely competitive move on T-Mobile’s part against Verizon’s stance, where each smartphone requires $30 for data in addition to talk and messaging. The data plan, combined with T-Mobile’s newly announced 4G phone offerings may be one of the first viable threats to Verizon’s customer base in light of Verizon’s recent moves.

Are you a current Verizon customer unhappy with Verizon’s decision to end the New Every Two program? Is Verizon still a carrier you would consider for your next phone?