AT&T Activation Fee for Contract Customers Rising to $45, New $15 Fee for 'Next' Customers

[spinedoc77]

What the heck can consumers do? Verizon is just as onerous with fees, and T-Mobile's/Sprints networks suck too much to consider. Consumers can go prepay with GoPhone and such, but if that costs ATT too much money they will just shut it down. What annoys me to no end is the taxes and regulatory fees that up my bill significantly, at least those are included in GoPhone and you can also get discounts thru CallingMart for Gophone service. $45 is $45, or even a couple bucks less, where with ATT post paid $80 is really $106.

 

[tongxinshe]

When I read this from a European's perspective the first thought I had was how can this happen? Then I looked up average contract costs and I was even more confused. Aren't there four networks that compete? I have three were I live and dozens of MVNOs. Can someone explain to me why mobile is so expensive in the US even with competition? (not trying to be snarky or anything, I actually don't understand).

Simply because all of those companies believe that the mobile phone service industry is supposed to be a high profitable business.

 

[maflynn]

I can't say that I'm surprised, I wonder if we'll over to T-Mo, if T-Mo is less expensive and doesn't have those fees, maybe.

 

[tsmyther]

Well, I read this and took my four-line account to T-Mobile. Went from 4 gb shared for $160/month to 10 gb/line for $120/month! With that savings, we bought my Lovely Bride a new iPhone 6 (64 gb) and are spreading out the payments for 24 months. So we're saving ten bucks and have TEN TIMES the data per line than AT$T was grudgingly allowing. And we have a new phone with no contract. w00t!

 

[Dimwhit]

I might have to look at T-Mobile for their business plan. We have 10 lines on AT&T, all sharing 15GB (which is honestly about twice what we use). Without phone installment plans, we're paying $285/month. T-Mobile is currently offering 10 lines, 10GB EACH line (which is nice, but overkill) for $240/month. Throw in all the fees, and we'd probably save 20 bucks/month on T-Mobile. Not sure it's worth the hassle changing our plan over (we have employees all over the state), but it might be.

 

[bniu]

I wonder if ATT is using the $15 next fee to counter the cost of administering all the interest free loans they've been giving out in the form of NEXT upgrades...

I guess for 6S, I'll be buying unlocked.

 

[tdc129]

All of these comments on here about switching to T-Mobile.....good luck if you dont live in a metro. People need to be educated before they just go for the cheap hype. There is a reason why they are cheaper.

 

[Spectrum Abuser]

That's not really the point behind that scenario.

As for providing with a service, you are saying it's all good if a service provider randomly decides to add on some fee for essentially nothing? How about then you similarly randomly decide to pay slightly less for your service once in a while? Surely that's not even close to a drop in a bucket for the service provider...but somehow I get the feeling they would still care.

Don't quit your day job; your scenario creating skills are really lackluster.

I'll play, though. Your bolded statement is what I'm about to respond to.

That would be a slight issue because of a binding agreement for the life of the service plan. I'm sure you are intelligent enough to understand that. Here's an enlightening idea for you, though! If you don't want to pay the extra few dollars, don't activate a new line through AT&T! Woah! Far out, right? You don't pay the extra few dollars and they don't get lousy criticism on an online forum. Everyone wins!

 

[C DM]

Don't quit your day job; your scenario creating skills are really lackluster.

I'll play, though. Your bolded statement is what I'm about to respond to.

That would be a slight issue because of a binding agreement for the life of the service plan. I'm sure you are intelligent enough to understand that. Here's an enlightening idea for you, though! If you don't want to pay the extra few dollars, don't activate a new line through AT&T! Woah! Far out, right? You don't pay the extra few dollars and they don't get lousy criticism on an online forum. Everyone wins!

Awesome, you nitpicked a less relevant part of an analogy based on some legalities to basically invalidate it all, including its spirit (which is really the more important part of it). One of those "not seeing the forest for the trees" and/or "throw the baby out with the bathwater" type of things. It certainly does a great job demonstrating that a carrier randomly adding fees onto this or that--and in particular onto things that don't require any more work on their part or have them providing anything more than they did before--is a good thing, especially for the consumer.

 

[whsbuss]

Someone like me has to pay for the DirecTV deal.

 

[balzmcfearson]

Where/when did they change this? I thought I read this and can't find it now.
I asked at the Apple store and they said they're still selling them this way.
(Assuming you mean, it's time to upgrade my iPhone this fall and I want to buy it from Apple).

Gary

A few months back. Current options for iPhone 6 16gb at apple.com.

 

[GlenK]

I stay with them due to grandfathered unlimited data plans on iphone AND ipad. If they ever dump those I'll be gone but for now it's still a great deal. I do use tons of data due to travel. Also on the NEXT plan and love that too. They agreed to continue the Unlimited plan even on NEXT. The 6s will be my second upgrade on NEXT.

 

[garylapointe]

I stay with them due to grandfathered unlimited data plans on iphone AND ipad. If they ever dump those I'll be gone but for now it's still a great deal. I do use tons of data due to travel. Also on the NEXT plan and love that too. They agreed to continue the Unlimited plan even on NEXT. The 6s will be my second upgrade on NEXT.

So how are they charging you on the unlimited plan on NEXT? ($30 additional dollars?)

Gary

 

[AZhappyjack]

I stay with them due to grandfathered unlimited data plans on iphone AND ipad. If they ever dump those I'll be gone but for now it's still a great deal. I do use tons of data due to travel. Also on the NEXT plan and love that too. They agreed to continue the Unlimited plan even on NEXT. The 6s will be my second upgrade on NEXT.

If you are on a standard 2 year contract AND using Next, then you are actually paying double for your devices. Part of the cost of the 2 year contract includes recovery of a device subsidy that you are not using. Of course it's your money and your choice, but the fact remains that you are paying for your device twice.

 

[whsbuss]

If you are on a standard 2 year contract AND using Next, then you are actually paying double for your devices. Part of the cost of the 2 year contract includes recovery of a device subsidy that you are not using. Of course it's your money and your choice, but the fact remains that you are paying for your device twice.

Don't think so. The cost for each phone is exactly divided by my 18-mo plan.

 

[AZhappyjack]

Don't think so. The cost for each phone is exactly divided by my 18-mo
plan.

Yes, the cost of the device on Next plan is the full retail cost of the phone ($649/$749/$849/$949) divided by the number of payments that you agree to make (18/24/30)... but there is also a cost built into the 2 year contract price to allow AT&T to recoup the cost of the phone subsidy purchased through that 2 year contract. That cost is fixed and included in the monthly service, whether you actually get the $199/$299 subsidized phone or not. So if you are on a 2 year contracted plan, you are paying AT&T extra to repay the subsidy that you are not using, PLUS the monthly Next payment on the device. That is double-dipping, my friend.

 

[whsbuss]

Yes, the cost of the device on Next plan is the full retail cost of the phone ($649/$749/$849/$949) divided by the number of payments that you agree to make (18/24/30)... but there is also a cost built into the 2 year contract price to allow AT&T to recoup the cost of the phone subsidy purchased through that 2 year contract. That cost is fixed and included in the monthly service, whether you actually get the $199/$299 subsidized phone or not. So if you are on a 2 year contracted plan, you are paying AT&T extra to repay the subsidy that you are not using, PLUS the monthly Next payment on the device. That is double-dipping, my friend.

So are you saying only AT&T does this?

 

[AZhappyjack]

So are you saying only AT&T does this?

No. It's the same for any carrier that offers a 2 year contract with phone purchase subsidy and an add-on purchase deal like Next or Jump.

All 2 year contracts have a built-in subsidy recovery provision - it allows the carrier to recover their loss in selling you a $749 phone for $199. And it's why you have to pay an ETF when you break the contract early.

If you are on a 2 year contract that offers you regular upgrades, you lose money every month that you don't take advantage of the equipment upgrade, because you are paying the carrier for a subsidy that you aren't using. Then, when you do upgrade via Next/Jump/whatever the other carriers call their plans, you are paying for the phone via their add on plan.

 

[whsbuss]

No. It's the same for any carrier that offers a 2 year contract with phone purchase subsidy and an add-on purchase deal like Next or Jump.

All 2 year contracts have a built-in subsidy recovery provision - it allows the carrier to recover their loss in selling you a $749 phone for $199. And it's why you have to pay an ETF when you break the contract early.

If you are on a 2 year contract that offers you regular upgrades, you lose money every month that you don't take advantage of the equipment upgrade, because you are paying the carrier for a subsidy that you aren't using. Then, when you do upgrade via Next/Jump/whatever the other carriers call their plans, you are paying for the phone via their add on plan.

I paid full cost for both my iPhones. Chose to finance via Next for 18-mos on mobile share (which has a $15 discount per line).

 

[AZhappyjack]

I paid full cost for both my iPhones. Chose to finance via Next for 18-mos on mobile share (which has a $15 discount per line).

The MobileShare plans do not include device subsidy, so you must pay full price for your devices - either outright or via Next. But this also means that you are not paying extra (repaying the subsidy) because MobileShare plans do not include subsidized devices.

 

[GlenK]

If you are on a standard 2 year contract AND using Next, then you are actually paying double for your devices. Part of the cost of the 2 year contract includes recovery of a device subsidy that you are not using. Of course it's your money and your choice, but the fact remains that you are paying for your device twice.

I am not on a two year contract so no I'm not paying for anything twice.

 

[GlenK]

So how are they charging you on the unlimited plan on NEXT? ($30 additional dollars?)

Gary

It's $25/month for the NEXT plan. I started with the 5S. When I got the 6 I paid $45 in taxes and my payment didn't change. Will see how it works on the 6S.

 

[AZhappyjack]

I stay with them due to grandfathered unlimited data plans on iphone AND ipad. If they ever dump those I'll be gone but for now it's still a great deal. I do use tons of data due to travel. Also on the NEXT plan and love that too. They agreed to continue the Unlimited plan even on NEXT. The 6s will be my second upgrade on NEXT.

I am not on a two year contract so no I'm not paying for anything twice.

How can you be on the unlimited data plan and not be on a 2 year contract? The data plans are only available on the older 2 year contract, as are the limited data plans (3GB and 2GB plans). The new plans (MobileShare) are offered based on the size of the bucket of data that you get.

 

[GlenK]

How can you be on the unlimited data plan and not be on a 2 year contract? The data plans are only available on the older 2 year contract, as are the limited data plans (3GB and 2GB plans). The new plans (MobileShare) are offered based on the size of the bucket of data that you get.

When I got the 5S and signed up for NEXT they grandfathered the data plan. (told them that was the only way I'd use NEXT) When I picked up the iphone 6 after a year they kept me on the same data plan, I paid only the taxes ($45) and my payment didn't change. So yes, they grandfathered the data plan into the NEXT program.

 

[RenoG]

How can you be on the unlimited data plan and not be on a 2 year contract? The data plans are only available on the older 2 year contract, as are the limited data plans (3GB and 2GB plans). The new plans (MobileShare) are offered based on the size of the bucket of data that you get.

Yup because this how I finally lost my unlimited, via Next family shared plan. Although I cried It was ridiculously cheaper and I simply couldn't justify the cost keeping it on its own since I needed to go that family plan route.