AT&T to Stop Offering Two-Year Phone Contracts Starting January 8

[lordofthereef]

So much fighting going on. #firstworldproblems

I think there is just overall confusion lol. This always happens when any carrier announces anything big like this.

 

[crouch]

Yes, it's always more expensive to buy a subsidized phone. Don't bother though, I tried exlaining that his os updates are not free because they figure that in and he had a hissy fit. Some people do not care what the phone winds up costing them or others just plain failed economics.

My god, I don't know if people are just being obtuse, or are just trolling, but seriously, knock it off. You're not helping the conversation at all, and on top of that, you're insulting people.

Not every person's situation is the same. For some of us--a pretty large group of us, if you read through this thread--this move by AT&T financially hurts us. It would be (and has been) cheaper for us to stay on the two-year contracts, upgrading every other year. The math proves that. For others, NEXT is a cheaper option. It just depends on your circumstances.

Please, all of you going through here and insulting those of us who these contracts are a good thing, stop. Your wasting your time and ours.

 

[macnewbie91]

You weren't paying that anyway. With the contracted plans it was just the price of the plan plus your down payment. Unless you were using Next for some strange reason on your unlimited plan, your monthly rates will not be cheaper

That's where your mistake is.

It's not just the price of the plan plus your down payment. The company added money into the plan somewhere to make up for the subsidized price of the phone. Do you really think AT&T would give you a $400 discount on a phone you'll end up keeping at the end?

 

[ignaciolt]

There is no contract. You can get out anytime by paying off the remaining installments, and then the phone is yours. That's not the case for a lease contract.

We are saying the same thing differently...
There is a contract...as you said, the contract states that you can get out anytime by paying off the remaining installments...that is part of the contract.

If I leased a car I could turn it in one year early and just pay off the remaining installments...I'm sure the dealership would be happy as they would get all of the money as well as the car back a year early which would be worth more.

When you have google define contract you get: a written or spoken agreement, especially one concerning employment, sales, or tenancy, that is intended to be enforceable by law.

If I decide not to pay off my phone and keep it anyways you are telling me that AT&T doesn't have a contract in place to legally force me to pay?

 

[lordofthereef]

That's where your mistake is.

It's not just the price of the plan plus your down payment. The company added money into the plan somewhere to make up for the subsidized price of the phone. Do you really think AT&T would give you a $400 discount on a phone you'll end up keeping at the end?

Your mistake is thinking they are dropping that $25. I am saying they are not. Your plan price (monthly cost) will remain the same in or out of contract. That is my point. You no longer get your subsidy but you are still paying that "extra $25" a month. In that sense you are absolutely getting less than you did before these changes. Because before these changes you got a $450 reduction on your handselt every two years. Now since you no longer get that (but are still paying monthly what you were before these changes), you are getting less for the same (technically less for more since the plan just rose $5 a month).

 

[barkomatic]

It doesn't matter. No unlimited contracted plan will ever be cheaper. Unless ATT completely backtracks from what they are currently doing with out of contract plans.

Let's say youre paying $70 for your unlimited line and are in contract. Once you are out of contract you still pay $70, however you have the option to get a new subsidized phone. Whether you take that new phone or not, you are still paying $70. Going forward, ATT has removed that subsidy option. You will still be paying $70 a month AND buying your phone outright.

Let's assume that I'm out of contract. My price -- that includes unlimited data, text and calls is $80 including tax. I use 20-30GB per month. On top of that I'd need to get a new iPhone from Apple by either paying the total cost upfront or paying the monthly charge which would be $47.45 per month. That is a total of $127.45 per month that includes a phone payment and my plan.

Can you show me a cheaper alternative (from a major carrier, not an MVNO) that includes that much data and a phone for a total price less than that?

However, by the time I upgrade again the point may be mute. I fully expect AT&T to kill unlimited data even for grandfathered users in the next few years!

 

[puma1552]

I have two 64GB iPhones on my 6GB shared data plan. I got both of them through payment options. One through VZW, at $31.25 per month, with no money down. The other through Apple's Upgrade program, for $36.58 per month, including Apple Care, which I would have bought anyway. If I would have bought either of those phones on contract I would have paid $200 each to get them out the door. When I got each "unsubsidized" phone Verizion dropped the price of my monthly access for each phone from $40 to $15. At the end of two years (assuming I pay out each phone and keep them both for the full two years) I will have paid $750 for the phone that Verizon financed, and $878 for the iPhone I got through the Apple Upgrade program ($750 for the phone, plus $129 for Apple Care). Total, real cost for both phones will be $1628.

Under contract, paying the extra $25 per month for access on each phone, the $400 down payment and the $129 for Apple Care my total out of pocket for the phones would have been $1729.

What is Verizon charging you on monthly access fees for your phone? If it's $40 I think you will find that they will, in fact drop it should you bring a phone to them that they are not "subsidizing."

They just list "Monthly Charges" as $60 which is described as 2GB data and unlimited talk and text, and then list Voice, Messaging, and Data at $0 each.

I would be shocked if that were to drop to $35 in month 25. But from all the years reading MR, this doesn't seem to happen.

 

[macnewbie91]

Your mistake is thinking they are dropping that $25. I am saying they are not. Your plan price (monthly cost) will remain the same in or out of contract. That is my point. You no longer get your subsidy but you are still paying that "extra $25" a month. In that sense you are absolutely getting less than you did before these changes. Because before these changes you got a $450 reduction on your handselt every two years. Now since you no longer get that (but are still paying monthly what you were before these changes), you are getting less for the same (technically less for more since the plan just rose $5 a month).

They WILL drop the $25 once your device is paid off on the NEXT program. That is YOUR mistake.

 

[lordofthereef]

Let's assume that I'm out of contract. My price -- that includes unlimited data, text and calls is $80 including tax. I use 20-30GB per month. On top of that I'd need to get a new iPhone from Apple by either paying the total cost upfront or paying the monthly charge which would be $47.45 per month. That is a total of $127.45 per month that includes a phone payment and my plan.

Can you show me a cheaper alternative (from a major carrier, not an MVNO) that includes that much data and a phone for a total price less than that?

However, by the time I upgrade again the point may be mute. I fully expect AT&T to kill unlimited data even for grandfathered users in the next few years!

Not sure why you quoted me on this. I am not even really talking about the same thing as you here.

Some are saying that this change benefits the customer. All they have really done is taken away $450 over two years from the customer and changed nothing else.

 

[JayLenochiniMac]

Nobody has answered this question: What are "Custom IRUs" (who are still eligible for the subsidized pricing on a two-year contract) and how is this supposed to be different from "IRUs (Individual Responsibility Users)", which I assume constitute most at&t customers with FAN?

 

[lordofthereef]

They WILL drop the $25 once your device is paid off on the NEXT program. That is YOUR mistake.

The next program is an additional cost on top of your unlimited data and service plan. We are talking about in contract subsidy phones here which, until now, were a $200 down payment (base phone cost) and no additional monthly cost on top of your unlimited data/service.

 

[neutralguy]

Your mistake is thinking they are dropping that $25. I am saying they are not. Your plan price (monthly cost) will remain the same in or out of contract. That is my point. You no longer get your subsidy but you are still paying that "extra $25" a month. In that sense you are absolutely getting less than you did before these changes. Because before these changes you got a $450 reduction on your handselt every two years. Now since you no longer get that (but are still paying monthly what you were before these changes), you are getting less for the same (technically less for more since the plan just rose $5 a month).

I don't understand all these confusion. Here is my upgrade cost on 2 year contract.:
iPhone 6: 199$
Unlimited data: 30$

That's it. For my wife who is in my plan:

iPhone 6plus: $299
Additional line cost: 10$
Unlimited data:30$

Tell me where am I paying the extra. I think Next program is the one where AT&T is making a lot of money. That's why they want everybody to get on that plan.

 

[macnewbie91]

The next program is an additional cost on top of your unlimited data and service plan. We are talking about in contract subsidy phones here.

They won't offer unlimited data plans with the next program, and current unlimited data plans would be scrapped for the NEXT program, so you're comparing apples to oranges.

 

[Ukyank1]

Even if you're contract isn't up it might make sense to do the early upgrade option if you plan on keeping your grandfathered unlimited plan for two reasons:
1. You can at least get some last subsidy on a new phone (not as much, but still $200).
2. You will retain your unlimited data for 2 more years & if they try to get rid of it they'd have to offer another free ETF cancellation for such a change.

 

[lordofthereef]

I don't understand all these confusion. Here is my upgrade cost on 2 year contract.:
iPhone 6: 199$
Unlimited data: 30$

That's it. For my wife who is in my plan:

iPhone 6plus: $299
Additional line cost: 10$
Unlimited data:30$

Tell me where am I paying the extra. I think Next program is the one where AT&T is making a lot of money. That's why they want everybody to get on that plan.

You will be paying the extra once ATT drops the subsidized price. You basically have until January 8 to get in on another contract at the price you quoted. After that it's over.

 

[ToroidalZeus]

Probably because you're on a contract. A lot has changed since 2009. Before TMO started shaking things up the only way you got any real "value" on "subsidized" contracts was to renew your contract every two years. Because phone carriers didn't lower your bill once the contract was up. So that ~$25 per month that was built into the contract for your "subsidy" kept going to the carrier even though the costs had been recovered by them. The only way you got any value for your ~$25 per month was to sink it back into another "subsidized" phone, and sign another contract.

Then TMO started offering unbundled, and that put pressure on the other carriers. Now each carrier offers an option to use a non-"subsidized" phone and get a discount.

Know this: If you have been on a contract, and it expires your carrier will not likely automatically drop your montly access fee for that phone. I had to call Verizon when the contract ended on my phone, and tell them to drop the price. I then went and got my phone from Apple through the upgrade program.

The problem is the new non-subsidized prices aren't cheaper.
I pay 250 (soon 260) for 2 unlimited, 2 2GB, 1 200MB lines.
I would need the 25GB shared plan for equivalent service which also costs 250 a month. (cuz of FAN discount)
So absolutely no savings. In fact I will lose all 5 of my subsidies so that's equivalent to paying $135 extra per month (or 94 if I include salvage value).

 

[lordofthereef]

They won't offer unlimited data plans with the next program, and current unlimited data plans would be scrapped for the NEXT program, so you're comparing apples to oranges.

They actually do offer next with the unlimited plan, it's just always been more expensive (admittedly i am unsure if they are planning on disallowing Next witht he Unlimited plan, and it wouldn't surprise me if so; regardless, financing through Apple is an option which is basically Next plus Apple care).

Not comparing apples to oranges, we are just talking about two diferent things apparently. I assumed (maybe erroneously) that people were talking about how their costs will change who are on the unlimited plan, this being an unlimited plan contract ending discussion.

 

[Hastings101]

Bye bye U.S. iPhone market share. Most people I know have iPhones, but a lot of them would die if they saw the $600+ up front for a phone - unless AT&T quietly puts up the Next pricing everywhere, then I guess it won't be any different than before except you're now leasing the phone instead of owning it.

 

[Toltepeceno]

What a bunch of blather. What does a 6s plus mid tier cost? With taxes it's around 940.00. Not far from a grand even with your common core math.

Now you are flat out lying. Nowhere in my post did I say there are phones comparable in quality that costs less. It's a discussion for now since you made a false statement about what I said. Point it out or learn to read.

People go with cheaper a lot of times just because of the money, get over it. My wife and I were the only people we know that owned (she still owns hers but is sick of it) iphones so a lot of people make that decision.

That being said I dumped my iphone for a moto x pure and it's the best I have ever owned so it's subjective and not everyone worships a symbol.

Seeing the price they are actually makes a difference whether you like it or not.

Your statement that "they gotta drop close to a grand instead of $200 upfront" is what was absolutely untrue.

Also, your absurd statement that there are phones that are comparable to the iPhone in quality that cost much less. But that's a discussion for another time.

And yes, every carrier. At least every major carrier.

I have no doubt that some will look at the actual cost of owning a phone and decide that they don't need to upgrade so often. And that's not necessarily a bad thing. But reading some of the comments on this thread it's clear that people don't understand how to do straight calculations, and see that they were paying that much for their phones all along. I'm sure that some of these people are the ones who keep places like Aaron Rents and Rent-A-Center in business...

 

[Toltepeceno]

The main non pay as you go carriers do, yes.
ATT, Verizon, Sprint, TMO
Everything else is a smaller pay as you go company.

Main carriers yes, every carrier is an exageration. I think it's a good thing though.

 

[macnewbie91]

They actually do offer next with the unlimited plan, it's just always been more expensive (admittedly i am unsure if they are planning on disallowing Next witht he Unlimited plan, and it wouldn't surprise me if so).

Not comparing apples to oranges, we are just talking about two diferent things apparently. I assumed (maybe erroneously) that people were talking about how their costs will change who are on the unlimited plan, this being an unlimited plan contract ending discussion.

When did they ever allow the NEXT program with the unlimited plan?

AT&T abolished the unlimited plan years ago. Those who still have unlimited plans used a loophole by purchasing a device for the full price up front instead of signing a new agreement.

When someone goes to sign up for the AT&T NEXT plan, they sign a new agreement and unlimited isn't an option.

 

[Toltepeceno]

My god, I don't know if people are just being obtuse, or are just trolling, but seriously, knock it off. You're not helping the conversation at all, and on top of that, you're insulting people.

Not every person's situation is the same. For some of us--a pretty large group of us, if you read through this thread--this move by AT&T financially hurts us. It would be (and has been) cheaper for us to stay on the two-year contracts, upgrading every other year. The math proves that. For others, NEXT is a cheaper option. It just depends on your circumstances.

Please, all of you going through here and insulting those of us who these contracts are a good thing, stop. Your wasting your time and ours.

Unless you are the forum owner or a mod stop whining about what I post. Hall monitor does not count. Some day you will find out other's opinion counts just as much as your whining one.

 

[dennysanders]

That's where your mistake is.

It's not just the price of the plan plus your down payment. The company added money into the plan somewhere to make up for the subsidized price of the phone. Do you really think AT&T would give you a $400 discount on a phone you'll end up keeping at the end?

well, i'm paying $39.99 for 450 rollover minutes, $20 for unlimited text and $30 for unlimited data...after taxes and whatever fees, i always pay around $96. every two years since '09 i've bought the new iPhone. this has always been the price i pay. where did they add in the cost of the rest of the phone???

 

[tbill1]

I would need to get more information from you. What plan are you on now?

My plan doesn't matter. Last time I bought a phone I only had to lay out $299 (6+) and my bill was $116. My bill will still be that much or more, only now I will have to pay $749. Multiply x2 to include my wife's phone. So again, how is this GOOD for me?

 

[macnewbie91]

well, i'm paying $39.99 for 450 rollover minutes, $20 for unlimited text and $30 for unlimited data...after taxes and whatever fees, i always pay around $96. every two years since '09 i've bought the new iPhone. this has always been the price i pay. where did they add in the cost of the rest of the phone???

Probably in the data since it looks like you have an old school plan from 2009.