That's one way to look at it.
From another of your threads, looks like you bought a 64GB iPhone 6 on a 2-year contract. You paid $299 up-front for the phone, and your monthly charge for that line is $40.00.
To contrast, if you had bought the same phone using Next 18, you'd pay nothing up front, and your monthly charge for that line would be $46.21.
To your point, if you're just looking at monthly charges, a 2-year contract is always a few bucks a month cheaper than a Next plan.
But if you step back and consider that you paid $299 up-front in order to have a lower monthly payment, you really didn't save anything in the end. You actually end up having paid $149 more on a 2-year contract than if you had gone with Next.
FWIW, ownership of the phone on a Next plan isn't any different than ownership of the phone under a 2-year contract.
Here is what I paid:
$224.82 iPhone 6 128GB
$322.10 iPhone 6 64GB
$73.99 iPhone 6 64GB
$620.91 upfront cost for 3 phones, I think this is a pretty good deal if you ask me.
I will factor in that I have 2/3 activation fees waived - $80 saved
So here is what my monthly bill be looking like: $213.83
Now over the course of 2 years I will be paying $5131.92 + 620.91 = $
5752.83
If I were to go with the next here is what I would be paying: $216.94 a month and the 30 months rate would end up being: $
6689.74
Now to be fair, if I were to upgrade every 24 months then the price would be 5388.10 with NEXT, but again I am not getting anything for the phones if I don't wait another 6 months...
In this case I feel that I am going to pay less with AT&T 2 year contract vs the next plan, of course the trade in offers/discounts is what helped me save money over the NEXT option.
In this situation everything is going to work out for me in my favor.
BTW I called retention last month and they gave me a month free too...
In this particular case its working everything my way...I don't expect this to happen every single time...but this time specifically it worked out for me. I was also lucky that Best Buy offered me $100 for the iPhone 3G 8GB
when I went yesterday to pick up the third iPhone 6...
I like to be able to upgrade my phone right at the two year mark.
With the next option I can technically upgrade at the two year mark but they will just take back the phone and give me a new one unless I plan to complete the 30 months term (AT&T NEXT 24)...
BTW why are people getting touchy about the word lease?
If you are upgrading before you fulfill all of your payments that means you aren't getting a dime for the phone that you have been paying for the last two years.
Now with everything said, the NEXT option is definitely a good option for those who can't afford to pay the subsidized price or for the people that want a brand new phone every single year. For me the two year option always worked out.
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AT&T will buy back a Next phone (after you've made a certain number of months) if you want to upgrade before your Next contract is over (this requires having to turn in your Next phone),
but this is 100% optional.
After you've fulfilled your Next contract, you absolutely do not have to turn in your previous phone in order to be able to buy your next phone. You own your phone in the same way that you own your phone after you've fulfilled a 2-year contract. You can sell it, gift it, keep it, whatever... It's yours!
I guess you could say the optional early upgrade aspect of Next is lease-like, but for the folks who are using Next as 0% APR financing and have no intentions of ever giving the phone back to the carrier, "lease" really doesn't make for an accurate description.
I think that's where some people take exception to using the word "lease" to describe Next. If it were truly a lease,
everyone would have to give the phone back at the end of the contract.
But honestly how many people will really wait to fulfill their whole term before upgrading? Example the new iPhone will come out sometimes around September/October, do you expect people waiting another 6 months to complete their terms before they consider upgrading?
I give AT&T kudos for coming up with such plan, it will be definitely a money maker for them when people do not finish up their full term in order to retain the phones and just upgrade to the next phone.