This. The new setup is somewhat better as you now are aware of what portion of your bill is paying for hardware. And once the hardware is paid off, you get a discount. This was not the case in the past. People would go years paying the higher rate plan without taking advantage of their upgrade, essentially over paying.
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Carriers making us pay full price
- Thread starter rhaezorblue
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This. The new setup is somewhat better as you now are aware of what portion of your bill is paying for hardware. And once the hardware is paid off, you get a discount. This was not the case in the past. People would go years paying the higher rate plan without taking advantage of their upgrade, essentially over paying.
The monthly discount is only applicable to the newer Mobile Share Value Plans. The older plans have fixed monthly service costs, regardless of whether you are on or off contract.
How are you paying just $35/mo per line for service with an iPhone (I'm assuming that's total)? That's a pretty darned good deal.
On 2-year contracts, you don't get a monthly discount, ever. If you don't upgrade your phone when 2-year contract is up, you keep paying the same high price (as if you had upgraded).
With Next/Edge, your phone will always have a monthly service charge ($15/month, if you're on a plan with 10GB+ of data), and then it may have an additional monthly device charge (which is basically a 0% interest finance plan that you pay monthly until your phone is paid off). When that's paid off, that charge goes away. But your service charge still stays $15/month.
Well, none of them require you to give it back if you complete all 20/24 payments, because obviously you own it at that point. But that defeats the purpose of the program, which is to upgrade every year. I was referring to the fact that you have to trade it in if you upgrade before you've made all 20/24 installments (or whatever is the case for your plan).
For example, on Verizon, an iPhone costs $32.50/month for 20 months, and you have to make at least 12 payments (60% of the cost of the phone). That means you've paid $390 for the phone, then you trade it in and the rest is waived. So essentially, Verizon is paying you $260 for your 1 year old iPhone (since it would have cost $650 new). By comparison, a 16GB Verizon iPhone 5S is selling on eBay right now for anywhere between $350-$500 depending on condition (I haven't seen any below $330 without a cracked screen or bad ESN/stolen). So you would have just been better off buying it off contract for $650 then sell it after a year for let's say $400... you would've been out $250 net instead of $390 under Verizon's plan. And AT&T's prices are almost identical.
Now, if you were buying a Samsung/LG/HTC, the math works out much more in your favor since the resale value of those phones after 1 year on eBay is much lower than an iPhone. But this is the iPhone forum, so it makes sense to use those numbers, does it not?
You do realize you could always pay off the EDGE/NEXT installment plan early, unlock the phones if AT&T, and then sell on ebay or CL for $400-500, right?
For folks on 10GB plans, after two years, the costs are about the same. To me, the big difference is that with NEXT, you don't have to drop $199 up-front when you upgrade. And folks that upgrade yearly with NEXT don't have to drop $649 up-front to upgrade mid-contract, like they do on 2-year contracts.
NEXT:
$360 = monthly service ($15/month x 24 months)
$000 = up-front phone cost
$649 = monthly phone payments ($27/month x 24 months)
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$1,009 (after two years)
2-YEAR CONTRACT:
$960 = monthly service ($40/month x 24 months)
$199 = up-front phone cost
$000 = monthly phone payments (it's bundled in the price of the monthly service)
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$1,159 (after two years)
Folks on 2 year contracts, it's only worth going to Next/Jump if you are sharing more than 10gb. Otherwise the contract pricing is more attractive. For AT&T/Next I agree they are trying to play both sides. They seperate the service cost from the device cost but then give you a discount on service cost if you use the Next plan. I think if its $15/line why does it matter if its next or not. The real reason is that the additional $25/mo charge on service is really just a form of the Next subsidation on the phone you buy from them but that continues indefinitely. In fact they should still keep the cost at $15/line regardless if you get it thru a 2 year contract price or thru next or BYO and then they should show an additional $25/month fee for Phone subsidation charge. THen i think it would be more clear.
One thing that is a farce in the US market is the fixed pricing of a handset, no matter the plan you choose.
For example, lets say I sign up to the 20GB data plan overseas, the carrier would give me a huge discount on the handset if not offer it for free.
Whereas, no matter how much you commit to a carrier here a year, the cost of the handset is the same.
For example, lets say I sign up to the 20GB data plan overseas, the carrier would give me a huge discount on the handset if not offer it for free.
Whereas, no matter how much you commit to a carrier here a year, the cost of the handset is the same.
What you're saying is true, but given that the majority of 5S are only getting around $400 or so for their phones (Many braggers here claiming they got $500-$600 on their 5S are conveniently leaving out the fact that ebay + paypal + shipping fees are more than 10% and they sold it to a overseas buyer - VERY RISKY! or have stupid friends/coworkers/family members who are paying them top dollar for their used device) and with craigslist you run the risk of being mugged, I'd rather take the $100 hit and just let ATT deal with it. What's even worse is sending it to Gazelle!
Next is also significantly cheaper if you plan to swap out your phone within 12 months. Lets calculate the price excluding the data component, which is the same for all types of plans.
iPhone 6 16gb - 12 month purchase
AT&T less than 10GB
Next 12
$0 = Initial Payment
$389.4 = Handset Payments ($32 * 12)
$0 = Activation Fee
$300 = Service Fee ($25*12) - save on taxes too
$0 = Disconnection Fee
——————————
$689.4 == Total
Contract
$199 = Initial Payment
$0 = Handset Payments
$40 = Activation / Upgrade Fee
$480 = Service Fee ($40*12) + extra taxes on the extra $15 per month
$205 = Disconnection Fee + extra taxes
——————————
$924 == Total
AT&T more than 10GB
Next 12
$0 = Initial Payment
$389.4 = Handset Payments ($32 * 12)
$0 = Activation Fee
$180 = Service Fee ($15*12) - save on taxes too
$0 = Disconnection Fee
——————————
$569.4 == Total
iPhone 6 16gb - 12 month purchase
AT&T less than 10GB
Next 12
$0 = Initial Payment
$389.4 = Handset Payments ($32 * 12)
$0 = Activation Fee
$300 = Service Fee ($25*12) - save on taxes too
$0 = Disconnection Fee
——————————
$689.4 == Total
Contract
$199 = Initial Payment
$0 = Handset Payments
$40 = Activation / Upgrade Fee
$480 = Service Fee ($40*12) + extra taxes on the extra $15 per month
$205 = Disconnection Fee + extra taxes
——————————
$924 == Total
AT&T more than 10GB
Next 12
$0 = Initial Payment
$389.4 = Handset Payments ($32 * 12)
$0 = Activation Fee
$180 = Service Fee ($15*12) - save on taxes too
$0 = Disconnection Fee
——————————
$569.4 == Total
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Yeah, that's true. Personally, I don't sell my devices. They get handed down to family members or I keep them for use as backup or for overseas travel (with local SIM).What you're saying is true, but given that the majority of 5S are only getting around $400 or so for their phones (Many braggers here claiming they got $500-$600 on their 5S are conveniently leaving out the fact that ebay + paypal + shipping fees are more than 10% and they sold it to a overseas buyer - VERY RISKY! or have stupid friends/coworkers/family members who are paying them top dollar for their used device) and with craigslist you run the risk of being mugged, I'd rather take the $100 hit and just let ATT deal with it. What's even worse is sending it to Gazelle!
A few minor changes (sales tax and upgrade fee). Overall, AT&T Next still comes out ahead by about $150, you pay less up front, and you have additional flexibility. If you're on a 10GB plan, there's really no reason to go back on-contract.
What if you are on the mobile value share family plan for, say, 10gb per month. You have an older iphone no longer in contract that you want to upgrade to the iphone 6. Instead of going on the next plan and 'renting to own' at the full cost of the iphone 6 over the 24 months, you instead buy an unlocked iphone 6 at full cost up front and replace your old iphone with the new iphone 6 and using it in its place... (Same line)... . Wouldn't the monthly mobile value share plan cost stay the same? Is there any benefits that the"next" plan has over this, other than convenience? (assuming that you can purchase a truly unlocked phone to begin with...)
When I check plans on UK websites (going to UK in Dec to catch some arsenal games) I noticed that you could get a newly released smartphone like the iPhone for free depending on your monthly bill.
Again, Next is just 0% financing. Compared to buying outright, the only benefit is with regards to opportunity cost and time value of money.
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That's the case in most countries. The system in the US is weird in that it only offers fixed subsidies. To me, it makes more sense that the more you spend per month, the bigger the subsidy you'll get.
Yes and you get free Hot Spot with your iPhone not so with contract. I use it for my iPad every day.
Mother of God... you should check out Sprint if you're interested in saving some money lol.
That is, if there's good coverage where you're at.
Nah, I already switched to the Mobile Share Value 10GB so now it's just $160/mo for service for 4 lines ($40/line). I've already looked at Sprint before and they're maybe just $10 cheaper than AT&T so not much savings, really plus I'd need to replace all of our phones. T-Mobile, I was strongly considering but their coverage just wasn't available where I needed it.
I would agree with this.
So tired of people thinking they were getting a phone for a few hundred bucks. How stupid can they be?
Sorry.. stupid question. This board is full of stupid people.
Decided to do a summary of my bill increases for simplicity.
4x dumbphone (base)
TOTAL: $110 (2 years: $2,640)
1x iPhone + 3x dumbphone (start of subsidized iPhones)
TOTAL: $140 (2 years: $3,360) or $720 more than base
2x iPhone + 2x dumbphone
TOTAL: $165 (2 years: $3,960) or $1,320 more than base ($660/iPhone)
4x iPhone
TOTAL: $240 (2 years: $5,760) or $3,120 more than base ($780/iPhone)
To anyone who thinks AT&T isn't charging you for that "discounted" iPhone on the old subsidy model, you're freakin' dreamin'.
4x dumbphone (base)
TOTAL: $110 (2 years: $2,640)
1x iPhone + 3x dumbphone (start of subsidized iPhones)
TOTAL: $140 (2 years: $3,360) or $720 more than base
2x iPhone + 2x dumbphone
TOTAL: $165 (2 years: $3,960) or $1,320 more than base ($660/iPhone)
4x iPhone
TOTAL: $240 (2 years: $5,760) or $3,120 more than base ($780/iPhone)
To anyone who thinks AT&T isn't charging you for that "discounted" iPhone on the old subsidy model, you're freakin' dreamin'.
put this on another thread in response to poster who thought "next" would keep their monthly fees the same forever... Per at&t "Monthly installment charges are determined by the full retail price of the smartphone divided by 20 monthly payments (AT&T Next 12) or 24 monthly payments (AT&T Next 18)." " Upgrade Option: Req's payment of 12 installments on 20 mth agmt/ 18 installments on 24 mth agmt, acct in good standing, trade-in of your financed device in good condition, & purchase of new elig. device w/qual. wireless svc. After upgrade, unbilled installments are waived. Coverage & svcs not avail. everywhere. Other restr's apply & may result in svc termination. ..". Sounds good, but what the terms/price are of the new contract is whatever they want it to be... so, you can upgrade early, with the old fees waived, but then you either accept whatever new price/ terms on the new contract they have, or what? Hang in there with your old phone and continue the final payments.... ??? So naturally as someone who wants early upgrades, you will be inclined to accept whatever terms/price they put in front of you for the new phone... As opposed to having a contract free phone with the freedom to switch....
Then pay in full for your phone, unlock it and switch to a different carrier. Again, Next is just 0% financing. Pay off the balance and the phone is yours and you're under no obligation to stay with AT&T. Once you've paid off your Next phone, it'll just as flexible as the GSM factory unlocked model.
Once you find the extra monthly costs involved, I don't get why this is such a thing. AT&T charges an extra $15 or $25 per month if you're on a two-year contract for a phone discount, depending on the type of plan you have. In short, I think it's about even to go to a contract when it's $15 more but way cheaper if it's $25 more.
There are a lot of misconceptions as if all of a sudden you're paying $450 more for the phone. The carriers have always made their money back when giving you a discount. Now it's just a lot more transparent. I have a friend who got sticker shock from me telling him the phone cost $650. Well, my bill is also only about $30 more than his for three iPhones and 10GB vs. his with one iPhone, one basic phone and an iPad with 2GB.
There are a lot of misconceptions as if all of a sudden you're paying $450 more for the phone. The carriers have always made their money back when giving you a discount. Now it's just a lot more transparent. I have a friend who got sticker shock from me telling him the phone cost $650. Well, my bill is also only about $30 more than his for three iPhones and 10GB vs. his with one iPhone, one basic phone and an iPad with 2GB.