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AT&T to Stop Offering Two-Year Phone Contracts Starting January 8
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I like this idea. You save more over going with the parent carrier and paying for new devices will still getting similar levels of support and coverage.
But the price you are paying for that unlimited plan has included interest amounts for subsidizing a phone. Your plan hides the cost. It doesn't matter if you pay outright or 'finance' the phone. Your getting stung and don't even know it. You think it's in the cost of the phone but it's the plan.
I think by now, the only people still on unlimited plans are those who it makes fiscal sense to still be on it.
That's not how that works. When you get the subsidy, your plan increases also. NEXT plans are cheaper for the same services. Did you really think AT&T was just giving the phones away and the NEXT plans were comparably a huge ripoff? It ends up being pretty close to the same cost over the course of 2 years.
It's difficult to understand where the carriers' heads are at. On the one hand they've been saying for years they want to eliminate phone subsidies but then on the other they offer deals like the current BOGO offer from AT&T that provides $650 of phone subsidy when activating another line.
i'm on a family plan. my line costs 10 plus 15 dollars of data. even if i was overpaying 15 dollars for data with my contract, that's still cheaper than paying for the full price of the phone.
I have the exact same plan. 2 devices, $160/month - grandfathered unlimited data (not really unlimited though - if you get throttled, its pretty much useless). I have gotten new iPhones every release without paying after my trade in. They tried to push me to Next last time (about 9 months ago). ATT rep actually lied and told me they weren't allowed to sell contracted plans. I pretty much told him the simple fact that ATT wants me to leave my plan for Next is reason enough for me to not do it.
That's the big question. We all know that AT&T would like to have all of their customers on current plans and all of their moves so far are pointing in the direction of eliminating unlimited/grandfathered plans.
I'm not sure why this is viewed as a bad thing. Literally for like 90% of people this Id a cheaper option anyway. I mean on Verizon you pay the taxes on the devices up front, then the full retail cost, divided by 24 monthly payments BUT for each month you stay with them you get a $20 credit. ($25 or $15 on the older plans). So...
iPhone 6S 16GB - Full Retail $649.99
2 yr contract - $199.99 + approx $21 in taxes + $40 upgrade fee = $261
Device Payment/Next - $45.49 for taxes up front + 7.08 for 24 months = $215.41
iPhone 6S 16GB - Full Retail $649.99
2 yr contract - $199.99 + approx $21 in taxes + $40 upgrade fee = $261
Device Payment/Next - $45.49 for taxes up front + 7.08 for 24 months = $215.41
Same here.
There's no point on staying with them any longer.
Here I come T Mobile as soon as my contracts are up.
$30 a month unlimited everything per line.
See ya later AT&T...
This is good.
The only difference here is that people can look at their phone bill and understand what they're paying for their phone.
The only way to justify the old subsidized method is if you think providing customers with LESS information is a good thing.
I don't see how anyone can make that argument.
EDIT: Also, remember how the subsidized method forced you to upgrade every 2 years or basically "waste" money?
That sucked for people like my mother who only wanted to upgrade every 4 years. Now, when her phone is paid off, she stops paying for it. What a concept!
The only difference here is that people can look at their phone bill and understand what they're paying for their phone.
The only way to justify the old subsidized method is if you think providing customers with LESS information is a good thing.
I don't see how anyone can make that argument.
EDIT: Also, remember how the subsidized method forced you to upgrade every 2 years or basically "waste" money?
That sucked for people like my mother who only wanted to upgrade every 4 years. Now, when her phone is paid off, she stops paying for it. What a concept!
You're doing the math wrong because you're comparing AT&T to AT&T. Next time compare AT&T to other MVNOs and see how the math works out.
The price of smartphones will eventually begin to slide southward or fewer people will be able to afford them
I wish... instead, the future is now... you'll only be able to lease them on a pay-per-month plan. That'll be the only way people will be able to afford them and it is the way that a lot of people afford them now ("them" being the latest and greatest). Personally, if I'm forced off of contract, it'll force me to shop around and I'll also have zero qualms about upgrading my device annually and selling my old one off.
Yea, they do. At least Consumer Cellular does. Hotspots are enabled for free, it just uses your data like anything else.
You can get around that. Just keep two lines out of contract. Use tablet lines @10 a month to buy subsidized iphones on. Although it sounds like that could be coming to an end if Verizon starts doing the same thing.
If they come to an end, then so do my annual iphone upgrades at no cost which isn't really a big deal anymore since I'm seriously not caring as much about new phones each year. One thing I won't do is get on any of verizon's device payment plans.
C'mon Apple MVNO!
Getting so tired of AT$T's shenanigans. It's like dealing with a schizophrenic pickpocket.
Getting so tired of AT$T's shenanigans. It's like dealing with a schizophrenic pickpocket.
Yep. If I'm forced off of contract and it becomes a downgrade for my personal finances, I'll be shopping around.
So this, on top of the unlimited data plan price increase.
That's right. I forgot about that.
So when they raise our unlimited data plans in February by $5 we can leave without an ETF right? I'm excited. I get to leave a year earlier
This sucks. Our unlimited AT&T plan with 2 iPhones costs us $115 including taxes and FAN discount. The $200 x 2 every 2 years to upgrade iPhones has been offset everytime by reselling our old iPhones. The activation fee has been waived after doing a quick chat with AT&T. Basically we are getting 2 new iPhones for free every 2 years for the cost of $115 a month. Now I have to pay $650x2 - $400(for selling old iPhones) every two years(if I choose to upgrade). That equates to about a $37 price increase every month.
I think the net effect will be that people keep their iPhones much longer which will crimp Apple's growth and profits.
The flaw is that you assume the service price just reflects service. I have been saving 50/month the last 3 years on a MVNO for better service. That is a savings of 1800 for 3 years and I am am not forced to upgrade and sell my phone to keep realizing perceived savings...
So are the monthly rates going down by the amount of the subsidy? Probably not.
Was it though? After 24 months, the cost of your plan doesn't decrease with any carrier, IIRC. So either it really is subsidized, or they just jack up the cost of what they itemize to be data or minutes or texts on your bill which would be fradulent if part of those expenses are actually a device installment that never gets removed after 24 months.
The way I see it, I buy a device on subsidy for $300 and a 2 year contract, then in two years I sell the device for around that price, sign another contract, and effectively pay nothing for the phone. But according to this ATT change, I'll pay full price for the phone, and then probably still only be able to sell it for $300 two years later, so the phone upgrades definitely hit your wallet harder. And all the while I'm pretty sure the price of the plan will be the same in either case, since nothing in the current plan is broken out as a device installment, meaning there's nothing in the bill for them to reduce/eliminate once you start buying phones at full price.
Great now decouple unlimited data from subsidy plans so I can keep my unlimited data but get a voice plan that's worth it