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

For myself this is bad news. I'm currently paying $30/3gb data/$5 for 200 texts (all friends have ipones), $9.99 for the added line on my mothers family plan. Of the four of us I'm the only one with a smartphone, so a mobile share plan is not necessary. I pay my mother $50 each month which covers my part of the bill.

I just priced out for kicks a 5gb NEXT mobile share plane @ $50/month, $25 for NEXT, and $40 for "mobile share value access charge (what the hell is that?)". $100 a month BEFORE taxes.

Over $50/month MORE for something I don't need (unlimited texting/extra data).

I refuse to pay AT&T more for stuff I don't need. Looks like i'll be going back to a basic flip phone of some sort or switch to a prepaid system such as Boost mobile.
 
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ActionableMango said:
Not true in all cases. I put all the current plans from AT&T, Verizon, and T-Mobile into an excel spreadsheet next to my grandfathered unlimited plan with 2-year contract. The 2-year contract was cheaper than all of the alternatives, even with AT&T's recent price increase to the unlimited plan.

All of the current plans are geared toward unlimited calls and SMS, while charging based on data use. This is the exact opposite of what I need. My grandfathered plan is geared toward unlimited data, while charging for calls and SMS. Obviously any user with heavy data and light calling/SMS is better off on the older plan.
Click to expand...

Agreed, I could use way less minutes and texts, all i want is data
 
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PhillyGuy72 said:
They a**hats are already going to raise my monthly rate starting Feb 16. I have until Sept. to drop them when my 2 years are up. UNLESS I can drop them in Jan without penalty??

I have to read the full article and of course the *footnotes of any penalties.
Bottom line, I'm sick of ATT's *********!
Click to expand...

You can drop them with no ETF as soon as they raise the unlimited data plan by $5.
That's what I'm doing.

"AT&T plans to notify customers who will be impacted by the price increase. Customers who wish to cancel their wireless service because of the pricing increase will have early termination fees waived for affected lines. Price changes will take effect during each customer's February billing period."
 
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As an unlimited data user, as others have said this is good motivation to leave AT&T. I pay about $100 a month total and generally use around 20gb of data a month, sometimes more. Keeping my current plan means I'll continue to pay the subsidy, without actually getting a subsidized phone, and switching to another AT&T plan will cost me at least $140 if I want 20gb of data, plus overages AND the phone cost.

On the other hand, "leasing" a phone directly from Apple will be about $40 a month. If I keep my current plan, even though I'll still be stuck paying the built-in subsidy cost, I'll be paying about $140 total. That makes it cheaper than the comparable AT&T MobileShare plan since I'd have to pay a leasing cost (or full retail) on top of the $140 cost for the basic plan.

Definitely time to see what deals are available elsewhere....
 
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ipodlover77 said:
Wait so is this for ALL customers? Cause it says some corporate customers (Im assuming who are on Premier) could still do contract pricing.
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It says people with CRUs (aka ppl that get a phone FROM their employeer) will be able to get a 2 yr contract but that phone has to be purchased by the employeer.

it doesnt say anything beside "custom IRU" for people that have a FAN discount and purchase their phones themselves with a company discount.
 
I wonder if my FAN discount will still allow for contracts.

If not, I'm clinging to my unlimited plan. I would pay significantly more to go to MSV.

There is no way in hell I'm going to a sleazy carrier like TMo or Sprint and get unlimited data from them.
 
Plutonius said:
Apple iPhone sales are likely to nosedive after the subsidies are eliminated. Time to sell Apple stock.
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Verizon and TMo haven't had subsidies for iPhones for a while now. You don't see Verizon or TMo iPhone sales declining. If anything, they keep increasing.
 
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BornAgainMac said:
I started with ATT during the first iPhone. I would get a 2 year contract but ever year I would purchase a new iPhone. Two year contracts were not for me so I switched to T-Mobile and purchase the iPhone outright about 2 years ago. For a person that wants a new iPhone every year, 2 year contracts were just not for me from day 1.

I prefer keeping my hardware purchases and my services as separate expenses rather than lump everything under one monthly bill. Big hardware purchases can be made yearly but monthly service fees need to be as small as possible.
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That's why you got a dummy line. Then staggered the upgrades so each year a different line was eligible. You could cancel the data plan on the dummy line too and so you'd only be paying an extra 10 dollars a month for the second line.

450 subsidy - 120 dummy line = 330 savings.
 
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ToroidalZeus said:
They are not the same. The $400 subsidy offsets the value of deprecation on the iPhone. So you pay 200 (+ tax upfront) and can then sell it for 200 after 2 years to break even.

Since most people don't switch carriers day to day, being locked in a contract makes no practical different.
Click to expand...

But you've been overpaying on your cellphone service to offset that subsidy. In the end you are saving nothing.
 
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AutoUnion39 said:
Verizon and TMo haven't had subsidies for iPhones for a while now. You don't see Verizon or TMo iPhone sales declining. If anything, they keep increasing.
Click to expand...

Keeping up with the Joneses and living beyond ones means may have something to do with this. I doubt the majority has $500-$600 to drop on a phone every couple years. Once you've seen a woman in line at the grocery store with six kids in tow paying for groceries with a WIC card while chatting on a 6+ perspective sets in.
 
Plutonius said:
Apple iPhone sales are likely to nosedive after the subsidies are eliminated. Time to sell Apple stock.
Click to expand...

That hasn't happened at T-Mobile who has eliminated the subsidies for a few years now. Most will focus on the total cost per month. For example: I pay $100 now and I'll pay $105 tomorrow with the new iPhone.

It's no coincidence that the total plan cost (phone + plan) is about the same as the subsidized cost....
 
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So if I just simply keep paying my bill without getting a new phone from AT&T I'll keep paying my monthly rate?
I can buy my iPhone from any other source directly and simply put the SIM in.
 
kagharaht said:
I'm with you and all 5 family members. We're off AT&T when the time comes.
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These histrionics are hilarious.

How is this any different from what T-Mobile (or Verizon) has done?

Instead of calling it a subsidy payoff, T-Mobile changed the name. Basically an ETF under a fancy name. It's often higher than the old traditional ETF.
 
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itguy06 said:
But you've been overpaying on your cellphone service to offset that subsidy. In the end you are saving nothing.
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Did you miss my 1st post?

I pay 260 a month right now. Since i get new 2/3iPhones for free each yr that is a savings of 135 per month. My net cost for 2 lines with unlimited data, 3 with 2GB and 2.5 new iPhones each year is 135 a month. That is $27 per line. (I do have a 25% FAN discount too).

On Shared everything I am looking at 250 a month for 25GB. I can still sell the old phones but that is only a 42 dollar a month savings. So net cost will be $208 a month.

On T-mobile it would be 200 a month, same 42 dollar savings so 158 net cost per month.

So no matter what I do. I am still going to pay more now.
 
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AutoUnion39 said:
Verizon and TMo haven't had subsidies for iPhones for a while now. You don't see Verizon or TMo iPhone sales declining. If anything, they keep increasing.
Click to expand...
That's because they're still framing them the same way as subsidies, except it appears even cheaper at first. If you go to Tmobile's site, you can get an iPhone for $0*, or an upgraded model for $99*. It's in smaller letters below that price that lists the $27.09 monthly price of the phone.
 
braindead5400 said:
That's because they're still framing them the same way as subsidies, except it appears even cheaper at first. If you go to Tmobile's site, you can get an iPhone for $0*, or an upgraded model for $99*. It's in smaller letters below that price that lists the $27.09 monthly price of the phone.
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Yup, you are correct my friend. They're trying to sucker in people who don't read the fine print... and it's working.
 
ActionableMango said:
Not true in all cases. I put all the current plans from AT&T, Verizon, and T-Mobile into an excel spreadsheet next to my grandfathered unlimited plan with 2-year contract. The 2-year contract was cheaper than all of the alternatives, even with AT&T's recent price increase to the unlimited plan.

All of the current plans are geared toward unlimited calls and SMS, while charging based on data use. This is the exact opposite of what I need. My grandfathered plan is geared toward unlimited data, while charging for calls and SMS. Obviously any user with heavy data and light calling/SMS is better off on the older plan.
Click to expand...
You are comparing AT&T to the other large carriers, all of which are rip offs. Compare it to MVNOs and you'll see the huge difference.
 
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