Carrier AT&T is veering away from subsidized phones, and it's paying off

Discussion in 'iPhone' started by EbookReader, Jan 31, 2014.

  1. EbookReader macrumors 65816

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    #1
    http://www.engadget.com/2014/01/28/att-next-growing/
    AT&T is veering away from subsidized phones, and it's paying off

     
  2. easy-peasy macrumors regular

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    Jan 31, 2014
    #2
    As long as they lower their monthly prices and let us pay for the phone with reasonable monthly installments, I'm all for it.

    Of course it's always a better deal to simply find a dynamite pre-paid carrier if you want significant savings.
     
  3. I7guy macrumors G5

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    #3
    Who said lower monthly prices? Change is coming in the form of data price gouging.
     
  4. barkomatic macrumors 68040

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    #4
    If they get rid of subsidies altogether then I'll just pay for the device outright. I don't wanna mess with another monthly bill and deal with a locked iPhone.
     
  5. alphaod macrumors Core

    alphaod

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  6. bniu macrumors 6502a

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    #6
    I agree 100%. I want one thing from AT&T, simplicity. With simplicity, AT&T makes fewer mistakes, their reps are more easily trained, their costs drop dramatically. As a customer, as lovely as some of the phone reps can be, I don't want to talk to them fixing AT&T's mistakes (which thankfully I have seen few of).

    I just want consistent service at a consistent price and being able to acquire new devices at consistent prices whenever I want. I don't want to play games trying to save every nickel I can. AT&T's job is to provide me a pipe and get the heck out of my way. I send them some money each month, and that should be the only interaction I have with them each month.
     
  7. MattMJB0188 macrumors 68000

    MattMJB0188

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    #7
    All I gotta say is $130 for 2 lines and 10GB of data is NOT BAD at all!
     
  8. CEmajr macrumors 601

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    #8
    I agree. I like this new move from AT&T. Waiting to see if Verizon will respond.
     
  9. mtneer macrumors 68020

    mtneer

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    #9
    That's exactly what AT&T or any other company in its shoes will desperately try to avoid - go from being a source of primary value creator to a commoditized utility provider. AT&T will be in the same boat as Intel - having to spend billions in capital and yet find all the benefits of that spending go to other companies while they are left with commoditized pennies. I think they will fight to the last to be able to control the customers value experience.
     
  10. easy-peasy macrumors regular

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    Jan 31, 2014
    #10
    While I agree, the fact that you are costing yourself $900 in iPhone subsidy every two years means the plan really costs $167.50/mo ($83.75 per line) which is still a good value for unlimited talk, text and 10 gb of shared data nonetheless.
     
  11. maflynn Moderator

    maflynn

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    #11
    Correct me if I'm wrong, but only the US uses subsidized pricing, carriers in Europe offer no such program.

    I think the industry in the US is moving away from subsidized pricing, first it was T-Mo, and seeing the success they had, AT&T is fighting back. Even VZW is moving away.

    There is a financial incentive for these carriers to get people to pay full price and it seems many consumers would rather avoid being locked into a 2 year contract when they get a subsidized phone.
     
  12. cnotes2019 Suspended

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    Aug 17, 2013
    #12
    But isn't a "contract" just semantics when in the end you still have to pay a lump sum if you want to switch carriers be it called an etf or the balance of the phone? I say just wait a couple months after a phone comes out and negotiate a price via swappa to get the latest and greatest at a cheaper price :) and stay on the plan your and do the same for the new carrier (and just take over someone else's contract to avoid activation fees etc via aol)!
     
  13. Menel macrumors 603

    Menel

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    #13
    Its choice. Many phones last longer than 2 years. Or they'd like less cumbersome freedom to sell and buy a different phone.

    Not everyone freely finances left and right, especially not a commodity like a phone handset.
     
  14. PNutts macrumors 601

    PNutts

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    #14
    Old news? The title says "paying off" which is a point in time claim and the referenced link referenced AT&T's fourth quarter earnings that were released last Tuesday.

    That information was three days old when the this thread started. I'm not a mayfly and I don't live in the forums so this wasn't old news to me.

    A better approach is to simply report the thread to the Mods and refrain from making off-topic comments.
     
  15. Steve686 macrumors 68020

    Steve686

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    #15
    Negative ghost rider.
     
  16. I7guy macrumors G5

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    #16
    ATT and verizon are giving away voice, data is the new battle field and "they" know it. So yeah,10-4 on that.
     
  17. Apple Trees macrumors 6502

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    #17
    No that's pretty much true. AT&T and VZW are making their money by attracting customers with their widespread, fast LTE networks but the data plan allotments really limit the actual use people can get out of those networks. The mobile share plans are the prime example. As the networks get faster, people will need more data. Their choice is either to increase their data allotment by increasing their monthly bill or risk $15/gb overages. Overages are a goldmine for the carriers. Luckily I still have unlimited with Verizon.
     
  18. Steve686 macrumors 68020

    Steve686

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    #18
    10gb with 2 lines for $130 a month is in no way gouging. In fact, they have added 6gb(4gb/mo. to 10gb/mo.) compared to the old style plan and dropped the price almost half for me. I averaged about 2.75-3.0gb usage on my plan a month total at an average of 25gbits/second LTE service. Even if LTE could sustain an increase of 2x speed, I won't even come close to 10gb usage. I don't see where you think it is gouging?
     
  19. OllyW Moderator

    OllyW

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    #19
    You are wrong. :)

    There are plenty of subsidised plans on offer in the UK though they are different to those on offer in the USA. Plans with a lower monthly cost plans mean you pay more up front for the handset while more expensive plans result in the handset being cheaper or free (including the latest iPhones).

    There are also a lot of low cost SIM only plans with good call and data allowances.
     
  20. Apple Trees macrumors 6502

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    May 28, 2013
    #20
    It's only $130 without included the price of the phones. Add in the price of 2 iPhones on NEXT and it's $200. You'll be getting no more subsidies on that $130 plan. AT&T has already done their math.
     
  21. bushman4 macrumors 68000

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    Mar 22, 2011
    #21
    There's no difference to subsidizing a cellphone or letting you pay it off. The price of the phone is built into your service each month when it's subsidized and when it's NOT-subsidized the price appears separately each month. So we
    What's the difference we as custers pay it either way
     
  22. bobright macrumors 601

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    Jun 29, 2010
    #22
    It's that if your out of contract, a couple new smartphones under Next would be more than $15 a line monthly
     
  23. jplusc macrumors 6502a

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    #23
    The simple fact is that this makes sense. Yes, you're essentially going to pay the same price if you always want the newest device. Period. But many people keep a phone for more than 2 years and they shouldn't have to pay a device subsidy built into the service costs. Furthermore, some people like less expensive smartphones (like the Nexus 5). This just makes sense and I'm happy the change is finally happening. You should be paying for what you want, period. No hidden or other built in costs.
     
  24. Steve686 macrumors 68020

    Steve686

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    #24
    You were paying for the phone in the old plans whether you know it or not.
     
  25. CosmoPilot macrumors 65816

    CosmoPilot

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    #25
    The difference is, once your contract expired under the old plan, your monthly bill didn't decrease.
     

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