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I edited my previous post to explain my argument by adding some numbers. I'll repost them here.

For a 10GB plan and 16GB iPhone 6. Both cost $100 per month base.

2-year contract: $200 upfront and $40 per month for 24 months. Total:1160
Next: $0 upfront and $15 per month for 24 months. You must pay for your phone in 24 equal installments of $650/24. Total: 1010.

The next plan is $150 cheaper.

But key is not to trade-in your phone for the upgrade. If you want to upgrade, sell the phone on the private market and then upgrade. Where am I wrong?
If you are on a mobile share plan than Next could be better for you, but half of AT&T's customers still have unlimited and it doesn't work for us.
 
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The cost of the phone is factored into your service plan. Someone said the calculated cost is $20 a month.

What I am complaining about is how complicated and non transparent this process now is.

For example, after two years of paying on Next, some are claiming that you don't even own the phone and must turn it in unless you pay a few more installments. Is this clearly spelled out or is it hidden in fine text?

They are simply confusing you. Take AT&T Next 18. Take the full retail price of your phone and divide by 24. This is what you pay monthly.

Now you have two choices. One, pay this monthly cost for 24 months and you own your phone free and clear. Hey, free financing!

Or, after 18 months you can trade-in your phone and upgrade (Next program restarts at this point). Essentially, you are selling your phone to AT&T for the cost of 6 monthly installments. This is, generally, a bad idea since the phone will get more value on the private market, but it is one way AT&T profits from this plan.
 
Just have to save up and get the phone outright and please lets not make this ANOTHER thread trying to explain if AT&T Next is cheaper.......
 
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Is AT&T doing away with 2 year contracts all together or just for the iPhone?

So much for potentially getting a 6S+ with my subsidy.

might be worth holding onto my jailbroken 6+ for quite some time then :D

I may not be seeing this correctly, but I think people are missing a key concept here. There's still a phone payment plan for those that can't buy one outright. The differences are that now you can get a new phone for $0 instead of $99 or $199 up front and, when you've paid it off over 12-24 months, that monthly fee stops hitting your bill if you keep using that phone for longer than- say- a 12 or 24-month term.

From that perspective, it looks like a much better way to go. I don't see anything in this that makes it impossible for the cash-challenged buyer to get a new iPhone much like they would in the traditional 2-year contract. They still get a new phone, probably by needing less money up front. They still have a portion of the monthly fee they are paying go toward paying off the "subsidy" for the phone.

What appears to be different is at the end. Instead of the monthly payment staying the same should one keep using that phone beyond the 2-year term (even if they've long since paid off the cost of the phone), somewhere during the 2 years, they will pay for the phone in full and their monthly bill will go down by whatever portion of the bill was allocated to paying for the phone.

Very simply: if service was $50 and paying for the phone $35...
-in the old way (2 year contract), you were set up to pay $85 for as long as you wanted to stick with that phone. If you stuck with it beyond 2 years, you kept paying $85 which converted the $35 that was going toward the phone to added profit for AT&T
-in the new way (no contract), you might still be set up to pay the $85 but once the phone portion of that bill is paid in full, the monthly would drop to $50.

Now, I just made up the $50 and $35 to illustrate the concept but hopefully the illustration does it's job. And this says nothing about the quality of Next service itself from AT&T vs. someone's former 2-year plan benefits.
 
Every time I look at these posts or read about all of these plans, I just get the biggest headache. Life is too short to sit here and discuss all this needless unnecessary complexity all the time.

I've been using Ting for over a year now and I usually pay $19 a month. Boom. Done. I never think about any of this crap, and my life is infinitely better for it. And I'm sure yours would be too.

While I agree that life is too short for this kind of things. However, your situation is limited to your case, you $19 per month is because you are not a heavy user.

A friend of mine like to stream sports, he pulls around 10-12GB a month, if he was on Ting, he'd actually be paying through the nose. Ting is terribly expensive when it comes to data.
 
Having looked at this, the new program is better for the user. After you've paid off the phone, you no longer pay the phone surcharge like you did with the 2-year contract (i.e., if you keep your phone longer then two years, your bill doesn't go down). You're free to keep your phone after that, but if you want to upgrade earlier, then you have to trade in your phone.

Of course, you're always free to purchase the phone outright, from what I'm hearing, on the new plan, they'll still honor the Unlimited plan folks.

I'd expect Verizon to follow this before the next iPhone comes out.

Very few people keep a phone more than 2 years these days. A very large percentage upgrade every 2 years or every year. This means most people won't save anything and instead will end up paying more.
 
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If one just pays cash for their phone, they can avoid the whole mess, really. It might sting the first year, but if you plan it properly, you can pay cash for your phone and sell your old phone every year to recoup it, so it's not really a bad deal at all.

You can do even better buy buying on the used market or even refurbished. You may even save tax
 
If you are on a mobile share plan than Next could be better for you, but half of AT&T's customers still have unlimited and it doesn't work for us.

Unlimited plans are a entirely different beast and since they're grandfathered plans, comparing them to today's plans is silly. Your objection is to AT&T ending unlimited plans, not to AT&T Next as a program, which is more transparent and better than the previous contract plans for equivalent amounts of data.
 
But with Next you have to trade in your phone at the end. Or make another six installment payments if you want to keep it.

That isn't true. I'm on the Next 12 plan. That means after 18 months I can upgrade without giving up my iPhone. I probably will just pay off what is remaining when the 6S comes out so I can upgrade without giving up my iPhone. I like to give my old one to the wife.
 
How will this work for folks who upgrade every year?

They should set themselves up with a phone portion payoff on a 1-year scale. Then, they can either sell the phone to someone else or trade it in without having any surplus debt to pay for the old phone.

Otherwise, it looks like they can simply upgrade and if they still owed on the old phone, they just pile that cost onto the new bill. If I'm not mistaken, in the 2-year contract, those wanting to upgrade every year had to deal with the very same issue of remaining debt on the old phone in some way.
 
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They are simply confusing you. Take AT&T Next 18. Take the full retail price of your phone and divide by 24. This is what you pay monthly.

Now you have two choices. One, pay this monthly cost for 24 months and you own your phone free and clear. Hey, free financing!

Or, after 18 months you can trade-in your phone and upgrade (Next program restarts at this point). Essentially, you are selling your phone to AT&T for the cost of 6 monthly installments. This is, generally, a bad idea since the phone will get more value on the private market, but it is one way AT&T profits from this plan.

Ah thank you! There is a lot of conflicting information being tossed around.

With next, can you choose to pay more than the monthly installments they quote you to pay it off sooner?
 
What about when you trade in a previous phone? Is that taken off the price and you pay even less monthly?

I got $200 off my iPhone 6 for trading in my 5. I'd be interested in what one would pay monthly after that trade-in or if they're doing away with that.
 
The cost of the phone is factored into your service plan. Someone said the calculated cost is $20 a month.

What I am complaining about is how complicated and non transparent this process now is.

For example, after two years of paying on Next, some are claiming that you don't even own the phone and must turn it in unless you pay a few more installments. Is this clearly spelled out or is it hidden in fine text?

The people who claim that are unable or unwilling to read. https://m.att.com/shopmobile/wireless/modals/next-faqs.html

Do I own the smartphone? Or is this a leasing offer?

The smartphone is yours, and you’re responsible for the monthly installment payments. You’re also responsible for any loss, theft, or damage to the smartphone—both during the installment agreement period and afterward. We recommend you purchase the optional Mobile Insurance to protect your investment.
 
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Most people are idiots and don't think they're actually paying full price for the phone on the 2-year contract, that they're only paying $199 for it. On the Next program, it specifically spells out that you're paying for the phone over two years.

See the difference, AT&T is being transparent about it on the Next plan and people are freaking out.
Not completely true, if I want to upgrade I have to turn my phone in, and I can't sell it to pay for the cost of the next phone. I have been getting away with upgrading for $50 bucks at most when I can sell my old phone.

Under the next plan, I am giving that money (profit from selling old phone) to ATT.
 
Great... I guess they finally realized people were always going to need their cell phone service, so there is no need to reward "loyalty" anymore.

Guess I'll call AT&T and tell them I'm moving to another carrier... let's see what they can do then.
 
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Unlimited plans are a entirely different beast and since they're grandfathered plans, comparing them to today's plans is silly. You're objection is to AT&T ending unlimited plans, not to AT&T Next as a program, which is more transparent and better than the previous contract plans for equivalent amounts of data.
It would be silly if 50% of AT&T's business didn't come from them.
 
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NEXT is trash. I've talked to ATT 3 times about switching 2 unlimited devices and 2 other iphones over to this program. Each time it turns out NEXT costs 400.00 more a year. 2-Year contracts is all I'll deal with, if I'm forced to NEXT then i'll let my contracts run out and head elsewhere.
 
My wife and I bit the bullet last December and purchased two 128 GB 6 Pluses unlocked and contract free. Cost about $2300, but now I am no longer tied to anyone and can re-sell my phone and upgrade whenever I please going forward.
 
So much FUD.

1. AT&T is not pushing anyone out of a legacy plan.
2. Apple makes and prices the iPhone. Yet, people are mad at the carriers because of the cost of the iPhone. What!? Literally, why?

Do you want to know the price difference between a subsidized legacy plan and the new plans without the cost of the phone? The cost of the phone. Do you REALLY think anyone was giving you an iPhone for $200?

It pains me to see people so adverse to logical analysis of a given scenario, because truth be told, the price of equipment has gotten cheaper for OEMs yet more costly in the market for consumers. For some reason people feel that their carriers should foot that bill while simultaneously lowering the cost of service. Do you get mad at the gas station because of how much your car costs? Hell, does the gas station give you a 0% APR loan for your car with $0 down at signing? LOL!

Putting pressure on OEMs to lower device costs is the potential outcome of all of this, yet everyone turns their sword against the service providers because they are giving the consumer more options and making transparent just how much money your giving to Apple, Samsung, LG, HTC, etc each month in the form of a premium on your wireless bill. Why aren't the masses questioning the OEMs about the cost/value paradigm? Huh?

Just make it make sense.


So much this....

It would be nice for carriers to show you up front what your costs would be over a 2 year period.

In any case I pay 130 a month for 3 lines and 15 GB of data. On next. But then again I like buying unlocked phones outright...
 
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There is some fluff and white noise mixed into some comments. For the longest time, when one signed a 2 y ear contract, the cost would be set, at say, $40 per month. That included the subsidy in the cost of the phone. Then att went along and started discounting the monthly fee to $15 which offered the appearance of the sub removal. -$25
While both plans were in place, those on the next plan took inn the same $40-25 line plan while those under contact would carry a $40 line fee.
Now. When you start to add THOSE fees up, the cost will actually be the same over the 24 months. Do the math on these numbers. I have one on next and another on contract on my plan. I see both. And I did these numbers.
 
Okay, here are the numbers for me to show those who say NEXT is cheaper ... not in every case. I am currently on a 2-year contract, iPhone 6 with 300mb of data each month (plus rollover).

$199.00 - cost of iPhone 6
$ 40.00 - activation fee
$ 68.65 - monthly bill for 24 months

$1886.60 - $220 (iPhone 5, sold online after using it for two years, wow!)

$1666.60 - total cost of my two year contract for an iPhone 6 for 24 months

If I switch to NEXT

$21.67 - per month fee for 24 months for iPhone 6
$20.00 - 300mb of data with roll-over
$25.00 - Mobile Share plan (includes $15 discount per month)

$66.67 + $8.00 (taxes, not sure how much exactly this is but $8 sounds about right)

$1792.08 - total cost of using an iPhone 6 for 24 months with the NEXT plan.

So in the end, I save $125.48 over the course of two years with the contract plan. Not a lot and if I screw up my phone (drop or scratch) and lose trade value, I could bite it in the end but so far over the course of 6 phones, hasn't happened and even $125 savings works for me.

But just wanted to point out that you CAN SAVE with a contract even though AT&T will tell you otherwise. However, some plans with NEXT are cheaper, just depends on your circumstances.

Why did you subtract your iPhone 5 from one calculation but not the other? If you're selling the phone, you have to subtract it from both or none.
 
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