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what is this hidden subsidy you're talking about?

aren't the plan pretty straight forward?

NEXT is like financing (for ppl that can't pay 800$ ish for a phone upfront), so you pay $800/24 a month for 24 months. because you're the Next plan, you're monthly service (data, minutes, txt) + equipment charge (40$ / month) (this is like the % rate for the financing)

so to sump up with an example (lets leave the fees and tax out of this)

NEXT $$/month + 100$ (10gb, unlimited talk/text) + 40$ a month (equipment charge)

OR

(buy you're own phone, from whatever source u like) + 100$ +15$ (equipment charge)

so what OTHER HIDDEN subsidy you're talking about?

He's probably talking about the increase of $25 in the monthly access fee. Not hidden.
For old plans it was hidden BUT those plans are WAY WAY WAY cheaper than current plans, people are not getting that.
 
Actually I just chatted with an AT&T rep, she was singing the praises of how NEXT upgrades are better than 2 year contract upgrades. Actually, they are offering to let you keep you minute/text/data plans for the same monthly price and just simply change your UPGRADE plan from 2 year contract to NEXT. So for an apples to apples comparison 2 year contact and 24 Month Next. I can pay $399 for a 64GB iP6+ upfront with 2 year contract -or- I can pay $35.38 / month for 24 months. At the end of each 24 months, I own each phone. But I paid $399 with 2 year or $849 with NEXT. So its X per month for your 2 year contract + $199/299/399/499 for the phone once every 2 years or X + X99/24 every month with next. You do the math.

You should pay about $25 less per month for service on the NEXT plan to compensate. It works out to about the same.
 
If Apple will sell the sim free or unlocked version of the next phone on launch day (or for pre-order) to me that isn't a big deal. I'll just buy our phones outright and contact ATT later to move our grandfathered data plans over.

The problem will be if Apple delays these versions of the phone until a month or so after launch......
 
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Your monthly AT&T service fees already includes a subsidy for your phone regardless if you buy your phone outright, go on a 2 year contract or use NEXT. By choosing NEXT or buying the phone outright, you're paying double the subsidy for the phone. The only time you do not pay for the phone twice is by doing the 2 year contract and getting a new phone every 2 years.
No, it doesn't. You're paying one amount for data (ie, $100 for 10GB) and then a per line equipment charge.

It depends on which voice plan you have.

With the old FamilyTalk plans you would be paying twice for subsidy next financing.
With the new Mobile Share (DATA) Value plans you get a surcharge (pay twice) for using the subsidy.

so basically you gotta switch your plan along with next if you choose that path.
 
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its so hard to keep up with thread like this. because people have different needs.

so the people that are actually complaining are the ones that have the grandfather unlimited plan, which I feel you. so hold on to that as long as you can.

however in the end. you will lose your grandfather unlimited plan!!!! maybe not this month or next year. but it will come to an end. just like what T-Mobile did.
 
I think the big difference, is with the two year contract, at the end the phone is yours, but with Next, it's AT&T's and is sent back for the new phone. So when you factor in the 2 years, then deduct what the outgoing phone sells for on eBay, it changes the equation.
Yes it 2nd this.

The problem with those online calculators and most people's math is they fail to take into account iphone resale value.

to put it simply the old familytalk nation plans (especially with unlimited data) and subsidy then reselling phone on craigslist was cheaper for the person upgrading yearly or every 2yrs.

The share everything and next plans are cheaper for people that keep the same phone long-term and don't upgrade.
 
its so hard to keep up with thread like this. because people have different needs.

so the people that are actually complaining are the ones that have the grandfather unlimited plan, which I feel you. so hold on to that as long as you can.

however in the end. you will lose your grandfather unlimited plan!!!! maybe not this month or next year. but it will come to an end. just like what T-Mobile did.
t-mobile offers unlimited data plan.

if apple ever pulls the 2yr subsidy completely i will switch over to t-mobile.
 
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I don't see the issue here. This is in general a better deal vs the 2 year plan. Plus now if you bring your own you can get a nice 5c used on Amazon about $200. The cost is less vs. a 2 yr plan to the tune of $15/ mo so $360 more over the two years plus the original price of phone $200+.

If you want to pay $200 down you can on the next plan. https://m.att.com/shopmobile/wireless/modals/next-faqs.html

Frankly I left the main carriers over this issue. Either buy a new phone every two years you are paying each month for it anyway. Now no longer.
 
I do a lot of iPhone upgrades at my job for AT&T. 9/10 people choose 2 year contracts. AT&T could go out of business for this.

I also work for AT&T and 9/10 upgrades I do are on the Next plan. In fact, if the customer is on a 10GB or higher mobile share value plan (which most are) it's cheaper to be on Next than a 2 year contract. You save a bunch of money up front and usually pay less monthly.

Wow, that sucks. That's how I've always purchased my iPhones.

No way in hell I'm giving up my grandfathered unlimited data plan.

For now you can still upgrade at AT&T corporate owned stores, not authorized retailers. Most people are switching to the mobile share value plans for significant savings and the 2 year contract is dying out. I believe Verizon is about to only offer upgrades with their Edge plan, and will not offer 2 year contracts even for grandfathered plans.
 
still don't get why it is called subsidized. Users are still paying the full price or even more (if they don't upgrade after two years), but they never pay less .... AT&T is not subsidizing anything, they are just hiding the cost in the monthly bill.

Because until recently, you paid the same monthly access fee even if you paid for your phone in advance, rate plans were not discounted at all.
 
I decided to run the numbers for myself as my family upgrades phones every 2 years. According to AT&T for the past year, the three of us have averaged 12 GB of data per month so I selected the 15GB plan for pricing. I got this information directly from AT&T when I logged in and looked at the available options for me.
options.png
 
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I do a lot of iPhone upgrades at my job for AT&T. 9/10 people choose 2 year contracts. AT&T could go out of business for this.
Lol, at this. If AT&T hasn't gone out of business for being a **** service, and has actually grown exponentially when adding in the acquisitions, THIS is not going to cause them to go out of business. I don't see Ma Bell going anywhere for a long, long time. They've been around since 1885.
 
People don't realize that there is a subsidy built into the 2 year contract on the grandfathered plan. Part of the $40 monthly access fee for the line is an equipment charge for the phone. If you think any carrier is going to sell you a $650 minimum iPhone for $200 you're delusional. The whole reason you have to wait 2 years is so the carrier can make up the difference.
 
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I wish the industry would quit with the subsidy term. When I buy or lease a car no one says the car company is subsidizing my purchase. Nobody is getting a phone for nothing. You're basically paying it off in installments every month.

But until recently you paid the same monthly access rate regardless of whether you took the phone for $199 and agreed to 2 years of service or you paid $649 with no commitment. And face it, only a small percentage change carriers on a regular basis. It's the physcological factor that's important for many people, I'm not committed, I can leave whenever I want, yet most seldom do.
 
You might want to reread the agreement you signed. Part of the Administrative Fees and Surcharges on your monthly bill is a hidden subsidy for your phone. AT&T says that the iPhone 6 16GB will have a monthly installment fee of $22, but that is on top of your existing AT&T service fees, which already include a device subsidy. The exact amount of that subsidy is unknown but most industry estimates have put it at something like $20 per month.
That is the case for older plans, but not for the current plans where the subsidy is being offset by the carrier giving you a discount for being on Next, or being off-contract (and basically using your equipment).
 
I also work for AT&T and 9/10 upgrades I do are on the Next plan. In fact, if the customer is on a 10GB or higher mobile share value plan (which most are) it's cheaper to be on Next than a 2 year contract. You save a bunch of money up front and usually pay less monthly.



For now you can still upgrade at AT&T corporate owned stores, not authorized retailers. Most people are switching to the mobile share value plans for significant savings and the 2 year contract is dying out. I believe Verizon is about to only offer upgrades with their Edge plan, and will not offer 2 year contracts even for grandfathered plans.

I don't see the issue here. This is in general a better deal vs the 2 year plan. Plus now if you bring your own you can get a nice 5c used on Amazon about $200. The cost is less vs. a 2 yr plan to the tune of $15/ mo so $360 more over the two years plus the original price of phone $200+.

If you want to pay $200 down you can on the next plan. https://m.att.com/shopmobile/wireless/modals/next-faqs.html

Frankly I left the main carriers over this issue. Either buy a new phone every two years you are paying each month for it anyway. Now no longer.

I pay 265 dollars a month right now with a 25% corporate discount. I have 5 lines and I staggered the upgrades so every year 2 or 3 are eligible. I resell the old phones on craigslist for atleast 200 and that offsets the 200 subsidized cost; sometimes i even make more which offsets the 76 upgrade dollar fee and tax. So i always have 3 top of the line iPhones and 2 last gen iphones. It's a nice setup.

To get what I have now with next I would need three 12mo next agreements and 2 24mo agreements, along with a 20gb shared everything plan. total cost is ~330 a month after my corporate discount. (assuming it still works).

So I'd be paying upwards of 65 dollars extra a month on next.

Also I did the same calculation and on T-Mobile I would pay about 290. So the takeway is that ATT/NEXT isn't cheaper (for me at least) and it's more expensive than the competition.
 
We'll just have to order from AT&T online at midnight. :(

This is the thing that made me cringe. My upgrade isn't technically available till November, but will have to go into AT&T store to get them to move it up. I have this bad feeling they will hold me hostage and try to force me into a Next plan or wait till November. My only ammunition is to threaten to switch to T-Mobile.
 
I pay 265 dollars a month right now with a 25% corporate discount. I have 5 lines and I staggered the upgrades so every year 2 or 3 are eligible. I resell the old phones on craigslist for atleast 200 and that offsets the 200 subsidized cost; sometimes i never make more which offsets the 76 dollar fee and tax. So i always have 3 top of the line iPhones and 2 last gen iphones. It's a nice setup.

To get what I have now with next I would need three 12mo next agreements and 2 24mo agreements, along with a 20gb shared everything plan. total cost is ~330 a month after my corporate discount. (assuming it still works).

So I'd be paying upwards of 65 dollars extra a year on next.

Also I did the same calculation and on t-mobile I would pay about 290. So the takeway is that att/next isnt cheaper (for me at least) and it's more expensive than the competition.

I have 5 lines, too. I have 15GB shared for $100 ($75 after corporate discount) and $15 per line on the Mobile Share Plan.

That is $150 per month + taxes. You're paying too much for service.

All my phones are paid off and I don't use NEXT. Just buy them full price or on the used market.

This is cheaper in the long run.
 
I decided to run the numbers for myself as my family upgrades phones every 2 years. According to AT&T for the past year, the three of us have averaged 12 GB of data per month so I selected the 15GB plan for pricing. I got this information directly from AT&T when I logged in and looked at the available options for me.View attachment 558688


Did you include the discount per line when on Next? Looks like the 15gb plan as a -$25 discount when each line is on Next. Thats $1800 over 2 years...
 
Also I did the same calculation and on T-Mobile I would pay about 290. So the takeway is that ATT/NEXT isn't cheaper (for me at least) and it's more expensive than the competition.
Are you including the phones' monthly installment costs into that? Assuming you 1) BYOD and 2) choose their 4.5GB plan for a 5-line data plan, the price per month (before fees/taxes) should be around $160.

We have 7 lines and our costs are hovering around $130-$150 (variable data plans, and all phones have been paid off).
 
I decided to run the numbers for myself as my family upgrades phones every 2 years. According to AT&T for the past year, the three of us have averaged 12 GB of data per month so I selected the 15GB plan for pricing. I got this information directly from AT&T when I logged in and looked at the available options for me.View attachment 558688

You also have to factor in $40 upgrade fees for each line. Usually with the upfront cost of about $300 per phone and the $40 upgrade fee factored in it's
I pay 265 dollars a month right now with a 25% corporate discount. I have 5 lines and I staggered the upgrades so every year 2 or 3 are eligible. I resell the old phones on craigslist for atleast 200 and that offsets the 200 subsidized cost; sometimes i even make more which offsets the 76 upgrade dollar fee and tax. So i always have 3 top of the line iPhones and 2 last gen iphones. It's a nice setup.

To get what I have now with next I would need three 12mo next agreements and 2 24mo agreements, along with a 20gb shared everything plan. total cost is ~330 a month after my corporate discount. (assuming it still works).

So I'd be paying upwards of 65 dollars extra a month on next.

Also I did the same calculation and on T-Mobile I would pay about 290. So the takeway is that ATT/NEXT isn't cheaper (for me at least) and it's more expensive than the competition.

I definitely agree that it's not better for everyone. If I see an account that will end up paying more on the new plans I obviously don't recommend that they switch. I think it's better for the majority of people though. The average user isn't using very much data and they're overpaying to keep their unlimited plan.
 
I have 5 lines, too. I have 15GB shared for $100 ($75 after corporate discount) and $15 per line on the Mobile Share Plan.

That is $150 per month + taxes. You're paying too much for service.

All my phones are paid off and I don't use NEXT. Just buy them full price or on the used market.

This is cheaper in the long run.
That's a great option IF you want to use last-gen iPhones from the used market. I however want to use brand new top of the line iPhones as soon as they are released, every year.

if i got the 20GB plan it would be 112.5 after discount + 75 for 5 lines. 187 total.

725*2 each year for new iPhones (after tax)
- 400 resale of old phones.
= ~1000 cost
/ 12 months
= 83 extra per month

187 + 83 = 270.

Except I would get 2 new iphones each year instead of 2/3 staggered.
 
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