Staying w/ ATT for years, Not Going Intl - why would I buy a phone outright?

jkel777 · Aug 27, 2014

C DM said:
If there are lines with contract starting in Sep 2013, meaning that they are still under contract, then those particular lines wouldn't be receiving the discount on the new plans (since they are under contract still), right?

As far as I'm understanding all this, yes, I believe that's right. I have a contract that started in September 2013, but I have the discount because we just recently switched to a 15 GB Mobile Share Value Plan.

Also, from what I understand, if you have this discount currently, and decide to upgrade to another phone on a 2-year contract, then you will stop receiving the discount.

C DM · Aug 27, 2014

jkel777 said:
As far as I'm understanding all this, yes, I believe that's right. I have a contract that started in September 2013, but I have the discount because we just recently switched to a 15 GB Mobile Share Value Plan.

Also, from what I understand, if you have this discount currently, and decide to upgrade to another phone on a 2-year contract, then you will stop receiving the discount.

So if you switched to a new plan while you were already on a contract you still got a discount (which essentially isn't supposed to apply to lines on contract)?

jkel777 · Aug 27, 2014

C DM said:
So if you switched to a new plan while you were already on a contract you still got a discount (which essentially isn't supposed to apply to lines on contract)?

Yes, I believe so. All I know is that we saved a bunch of money when we switched to the Mobile Share Value Plan, and we all have a $25 discount. Refer to rui no onna's earlier posts about the February 2014 contract change.

C DM · Aug 27, 2014

jkel777 said:
Yes, I believe so. All I know is that we saved a bunch of money when we switched to the Mobile Share Value Plan, and we all have a $25 discount. Refer to rui no onna's earlier posts about the February 2014 contract change.

Right, I saw that as well. Just find it odd that discounts were given to lines that really shouldn't be getting them (as they are under contract) at least when someone initially changes to the newer plans. I mean that's great if that's truly the policy, and would be nice if other carriers that offer similar plans/features (e.g., Verizon in particular) would do the same then.

jkel777 · Aug 27, 2014

C DM said:
Right, I saw that as well. Just find it odd that discounts were given to lines that really shouldn't be getting them (as they are under contract) at least when someone initially changes to the newer plans. I mean that's great if that's truly the policy, and would be nice if other carriers that offer similar plans/features (e.g., Verizon in particular) would do the same then.

I think the caveat for AT&T is that you get the discount when you switch to a Mobile Share Value Plan, but you have to buy a new phone with AT&T Next or buy it contract-free to keep it. I'm going to call AT&T to confirm this.

EDIT: Can confirm this after calling AT&T. We were grandfathered into the Mobile Share Value Savings discount of $25 per line because all our contracts started before February 2014, and we switched to the 15 GB MSVP in July of 2014. The customer service rep also said that any contract starting after February 2014 that doesn't use Next will lose the discount, unless you BYOD or buy contract-free.

C DM · Aug 27, 2014

jkel777 said:
I think the caveat for AT&T is that you get the discount when you switch to a Mobile Share Value Plan, but you have to buy a new phone with AT&T Next or buy it contract-free to keep it. I'm going to call AT&T to confirm this.

EDIT: Can confirm this after calling AT&T. We were grandfathered into the Mobile Share Value Savings discount of $25 per line because all our contracts started before February 2014, and we switched to the 15 GB MSVP in July of 2014. The customer service rep also said that any contract starting after February 2014 that doesn't use Next will lose the discount, unless you BYOD or buy contract-free.

That's a good deal. Too bad Verizon didn't/doesn't offer that type of grandfathering for discounts.

jkel777 · Aug 27, 2014

C DM said:
That's a good deal. Too bad Verizon didn't/doesn't offer that type of grandfathering for discounts.

Does Verizon not give you a discount if you use Edge? The rep said the discount helps offset the cost of the monthly installment payments.

AT&T is really pushing Next hard. If you have a MSVP, it sort of makes sense because of the discount, but you're still going to end up having more money added to your bill, and you don't get to keep the device unless you pay for the rest of it. If you want to buy with a standard two-year contract, you lose the $25 discount on the line that upgrades by signing a new two-year contract. Seems like either way the monthly bill is going to increase now, unless everyone buys their phones outright. In which we're still shelling out more money.

C DM · Aug 27, 2014

jkel777 said:
Does Verizon not give you a discount if you use Edge? The rep said the discount helps offset the cost of the monthly installment payments.

AT&T is really pushing Next hard. If you have a MSVP, it sort of makes sense because of the discount, but you're still going to end up having more money added to your bill, and you don't get to keep the device unless you pay for the rest of it. If you want to buy with a standard two-year contract, you lose the $25 discount on the line that upgrades by signing a new two-year contract. Seems like either way the monthly bill is going to increase now, unless everyone buys their phones outright. In which we're still shelling out more money.

Verizon gives it for Edge and even finally started giving it for owned/non-contract devices as well (as originally they didn't offer that with the new plans). What they don't do is give this discount initially when you switch to the new plan even to lines that were/are under contract when you are switching, as AT&T apparently seems to. Otherwise it works the same way as with AT&T currently.

ABC5S · Aug 27, 2014

juanrp said:
Even if you don't go intl or are planning to switch carriers, you still have that flexibility.

You feel a sense of freedom from being off contract (like I am)
You never know if you have to ever travel outside the continental US.
some people sell their phones to afford the new one. Unlocked phones can be sold from way more than a carrier locked phone.

But you're right - whether you pay $649 unlocked (16GB) it's sill the same phone as the $199 option with contract.

It's all personal preference.

1...I'll take saving of $450.00 over a sense of freedom

2...Yes, I do and if I did, I would never take a cell phone that I might get hit with massive charges if I make a mistake.

3...Verizon are always unlocked no matter if on a 2 yr contract.

juanrp · Aug 27, 2014

ABC5S said:
1...I'll take saving of $450.00 over a sense of freedom

2...Yes, I do and if I did, I would never take a cell phone that I might get hit with massive charges if I make a mistake.

3...Verizon are always unlocked no matter if on a 2 yr contract.

1. Okay??

2. Okay??

3. They were asking about AT&T.

sixxmum · Aug 27, 2014

ABC5S said:
1...I'll take saving of $450.00 over a sense of freedom

But on AT&T, it's not a $450 savings, because you pay $25 more a month for your service if you get the subsidized phone. So, over the life of your contract, that eats that savings back.

jkel777 · Aug 27, 2014

After learning much more through these forums, I think there's three options here for buying the iPhone 6 for me. Hopefully this helps others on AT&T that are in the same boat:

1: Buy the phone unlocked and carrier free (don't know if Apple will have this as an option at launch, but we'll see)
2: Buy the phone on AT&T at full retail to avoid a contract extension, therefore keeping Mobile Share Value Plan savings of $25 per line. However, if upgrade eligibility moves up for AT&T customers to coincide with the iPhone launch, the only option will be to early upgrade on Apple's website (viewed upgrade options for my brother's line since he's due for a full upgrade this September/October, and the only option was an early upgrade, no option for buying without a contract extension).
3: Buy the phone using AT&T Next 12, pay two monthly installment payments, and then pay off the rest of the phone.

sixxmum · Aug 27, 2014

jkel777, I am totally in the same frame of mind about our two phones.

jkel777 · Aug 27, 2014

sixxmum said:
jkel777, I am totally in the same frame of mind about our two phones.

For AT&T customers, it's either BYOD, pay full retail, or go their route and use Next. The $25 discount per line is pretty good (if using MSVP), and can add up if the discount no longer applies.

nostresshere · Aug 27, 2014

jkel777 said:
..3: Buy the phone using AT&T Next 12, pay two monthly installment payments, and then pay off the rest of the phone.

Help me understand why the vast majority of people would pay off the phone after two payments?

(assume that most people are staying with ATT and not leaving the country)

jkel777 · Aug 27, 2014

nostresshere said:
Help me understand why the vast majority of people would pay off the phone after two payments?

(assume that most people are staying with ATT and not leaving the country)

My bad, I thought you had to have a minimum of two payments before you could fully pay off the device. That's only if you want to pay to upgrade. You can pay off the device at any time.

rui no onna · Aug 27, 2014

C DM said:
If there are lines with contract starting in Sep 2013, meaning that they are still under contract, then those particular lines wouldn't be receiving the discount on the new plans (since they are under contract still), right?

It's a special exception AT&T made for customers who were on contract before Feb 2014 to get them to switch from subsidized plans (a lot of which are likely grandfathered unlimited data) to Mobile Share Value + Next. There's a long thread dedicated to this discussion. I learned about it pretty early (3/2014) so I essentially got off not paying 6 months of subsidy on 2x iPhone 5 and 18 months on 2x iPhone 5s.

It's a pretty smart strategic gesture by AT&T to move folks to tiered data plans and stop the bleed to T-Mobile which ended up benefiting a lot of customers. That is - at least until they upgrade and get sticker shock from the additional $130-170 per month for Next or $2,600-3,400 outright that 4 iPhones will cost them. I crunched my numbers before I switched and the new plans really do save us money (and has the potential to save us even more since my parents aren't interested in replacing their phones until they break). However, I can easily imagine there are quite a folks who will switch for a slight discount and never considering just how much extra a Next phone (or 5) will add to their monthly bill.

jkel777 · Aug 27, 2014

rui no onna said:
It's a special exception AT&T made for customers who were on contract before Feb 2014 to get them to switch from subsidized plans (a lot of which are likely grandfathered unlimited data) to Mobile Share Value + Next. There's a long thread dedicated to this discussion. I learned about it pretty early (3/2014) so I essentially got off not paying 6 months of subsidy on 2x iPhone 5 and 18 months on 2x iPhone 5s.

It's a pretty smart strategic gesture by AT&T to move folks to tiered data plans and stop the bleed to T-Mobile which ended up benefiting a lot of customers. That is - at least until they upgrade and get sticker shock from the additional $130-170 per month for Next or $2,600-3,400 outright that 4 iPhones will cost them. I crunched my numbers before I switched and the new plans really do save us money (and has the potential to save us even more since my parents aren't interested in replacing their phones until they break). However, I can easily imagine there are quite a folks who will switch for a slight discount and never considering just how much extra a Next phone (or 5) will add to their monthly bill.

Either way, if AT&T customers want to take advantage of the $15-$25 on their MSVP, then they either have to use Next, or buy outright at full retail.

Which makes me wonder: why wouldn't everyone using a MSVP just use Next to upgrade? Then they can just pay off the remaining balance of the phone whenever they want, just like buying outright, and also avoid upgrade and activation fees.

rui no onna · Aug 27, 2014

jkel777 said:
Either way, if AT&T customers want to take advantage of the $15-$25 on their MSVP, then they either have to use Next, or buy outright at full retail.

Which makes me wonder: why wouldn't everyone using a MSVP just use Next to upgrade? Then they can just pay off the remaining balance of the phone whenever they want, just like buying outright, and also avoid upgrade and activation fees.

Some might need it to be unlocked from the get go (e.g. international travel).

Others seem to derive a warm fuzzy feeling from knowing they're not on contract. Granted, they would have essentially gotten the same benefits and paid the same total amount if they pay off their Next loan.

Mind, if you're only getting a $15 discount, buy outright or contract is better.

jkel777 · Aug 27, 2014

Staying w/ ATT for years, Not Going Intl - why would I buy a phone outright?

rui no onna said:
Some might need it to be unlocked from the get go (e.g. international travel).

Others seem to derive a warm fuzzy feeling from knowing they're not on contract. Granted, they would have essentially gotten the same benefits and paid the same total amount if they pay off their Next loan.

Mind, if you're only getting a $15 discount, buy outright or contract is better.

Haha exactly. So there's no downside to starting off with Next, and then paying the rest off if/when I want to buy outright? Versus just buying outright at the start.

We're getting a $25 discount per line right now.

rui no onna · Aug 27, 2014

jkel777 said:
Haha exactly. So there's no downside to starting off with Next, and then paying the rest off if/when I want to buy outright? Versus just buying outright at the start.

No downside although I just recalled a couple more benefits to buying outright vs financing (Next):

Extended 2-year warranty if buying using select credit cards. Could save you from buying AC+ if you don't think you'll need it for accident protection.

Can get Verizon device-only iPhone which is the only version that can be used on AT&T, T-Mobile and Verizon. No need to buy a new phone in case you ever want to switch to Verizon or Verizon MVNO.

jkel777 · Aug 27, 2014

rui no onna said:
No downside although I just recalled a couple more benefits to buying outright vs financing (Next):

Extended 2-year warranty if buying using select credit cards.

Can get Verizon device-only iPhone which is the only version that can be used on AT&T, T-Mobile and Verizon. No need to buy a new phone in case you ever want to switch to Verizon or Verizon MVNO.

Gotcha. Thanks for the info.

Unfortunately, I'm using a Visa credit card through a locally owned credit union, so I'm not sure if that's offered.

The second part isn't a huge deal-breaker for me. We've been on AT&T for around 10 years now and get a FAN discount, so we probably won't be switching for a while.

Looks like Next it is!

Staying w/ ATT for years, Not Going Intl - why would I buy a phone outright?

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