A grandfathered plan with rates set back in 2007 is still cheaper than a comparable plan with rates set in 2015?
No way?!
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AT&T users on FAN accounts can continue 2 year subsidized plans right?
- Thread starter wesk702
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No way?!
Eh, I've heard this argument before and realistically the "old" plans without mobile share and with subsidized phones are in fact cheaper than paying access charges, etc. Having a 2 year contract on mobile share signed after switching to mobile share is even more expensive, so you're right about that. But the old plans were cheaper, although if you factor in tethering then the new plans are much cheaper (not having to pay $50 per line to have tethering). It's kind of a toss up, but I personally prefer the new plans.
Exactly. This is comparing two unlike things. I am comparing two like things. Today's contract vs today's family share a really like items.A grandfathered plan with rates set back in 2007 is still cheaper than a comparable plan with rates set in 2015?
No way?!
I manage the FAN account at my company and reached out to our att rep. She confirmed in my case, the subsidied 2 yr agreements are dead for IRUs.
Are you perhaps forgetting the fact that you used to own your old phones when you went and got a new one... and could give them away or sell them, but now you'll be "trading" them back in, so you can not own the next one.
Yeah. Sounds awesome.
You absolutely are not required to trade it in at the end of the contract in order to get your next phone.
Unlike with 2-year contracts (which had no option to pay off the phone part early, in case you wanted your next phone before the contract normally ended), Next gives people the option to trade-in their phone (which pays off what's left on the contract), but that's 100% an option.
A grandfathered plan with rates set back in 2007 is still cheaper than a comparable plan with rates set in 2015?
No way?!
Yes and a landline with rates in 2007 is slower and more expensive than comparable plans today. As more infrastructure is built, a more people get on board, prices should go down. This is capitalism / economics 101. We shouldn't be paying more for mobile data today. So yes there is a problem here.
Obviously, I'm not happy with how expensive plans are, but that isn't the same conversation as this.
The second part of your response is not true. You certainly *can* pay off your contract and your contract would end. It was just called something different--an ETF. If you paid it, you can then get your iPhone officially unlocked as well.
This remains an option for those on contract today.
The only time I've heard of people paying the EFT is when they're canceling their service. If you're on month 12 of a 24 month contract, and you simply want a new phone, how do you pay the EFT and then go about getting the new phone?
You pay the pro rata portion of your EFT, get your new phone, and start a new 12 or 24 month contract.
I do agree with what you are saying, aristobrat. People are upset because AT&T had no idea how big data usage was going to become and offered these unlimited plans. However, these plans are not profitable for AT&T. So the gravy train is coming to an end and many are upset about it.
I personally view the end of subsidized phones as a good thing. You can get good deals if you do your homework. Right now Verizon is offering up to $650 to switch to them. Manufacturers were previously making phones that were specific to each carriers network in the U.S. Now manufactures will have an incentive to make phones that function across all the U.S. carriers networks. This will make it easier to switch carriers which will force the carriers to fight even harder to retain customers.
With AT&T, you could take the early upgrade option and pay $450 for the 16 GB iPhone ($200 discount).
A round about way is just to open a new line get the $199 iPhone (or whatever). Put a flip phone on that line and pay $9.99 for that line for the next 20 months until the next month. It became a game and u could alternative full subsidy upgrades. Aka pay $9.99 X 20 months (equals $200) to maintain open line was cheaper than paying full $650 for iPhone. So it cost u $200 (plus taxes) plus $199 for iPhone that cost $650. And u could alternative lines one and two. So u could keep getting full upgrades every year if you alternative lines
Has anyone with a corporate IRU confirmed they will be eligible for a greater discount after the partial discount period ends?
The AT&T app still shows that I may be eligible for a greater discount later.
https://twitter.com/iphone5att64/status/685197251795402752
The AT&T app still shows that I may be eligible for a greater discount later.
https://twitter.com/iphone5att64/status/685197251795402752
Looks like the day of discounted phones are OVER
Surprised it took them this long... How many of us here were buying the things for $200 and then selling them for $400+ a year later? The slightly more expensive (and only in some cases) contract plans in no way made up for this.
The only good news is that this might force a reduction in flagship phone prices. Probably not, though.. it seems the average consumer has been fooled by the installment plan trick.
It just isn't true, though. In many situations people were paying almost exactly the same amount on the old plans as they are for similar MSV plans, except they were also getting $450 discounts on phones.
This change benefits AT&T financially. They wouldn't be doing it for any other reason.
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Beginning January 8, 2016, 2-year agreements will no longer be available to consumer, standard IRU, and non-contracted CRU customers nationwide. The majority of wireless carriers have also moved away from subsidizing 2-year agreements. While AT&T Next will be the go-to option for the majority of Consumer and IRU customers, please note that the new AT&T Equipment Installment Plans (EIP) and 2-year agreements will remain an option for CRU’s on FAN accounts and custom IRU accounts via select channels.
CRU—Corporate Responsibility User
IRU—Individual Responsibility User
Corporate Responsibility Users, or CRUs, are employees who receive service under a corporate account for which their company has financial responsibility.
Companies with a qualified business agreement may also take advantage of the Sponsorship Program, which enables their employees to subscribe to service as Individual Responsibility Users, or IRUs. IRUs must have an individual 2-year service agreement and an eligible plan-this means the employee receives service under an individual account for which the employee him/herself has financial responsibility.
CRUs and IRUs are sometimes referred to collectively as "End Users".
IRU—Individual Responsibility User
Corporate Responsibility Users, or CRUs, are employees who receive service under a corporate account for which their company has financial responsibility.
Companies with a qualified business agreement may also take advantage of the Sponsorship Program, which enables their employees to subscribe to service as Individual Responsibility Users, or IRUs. IRUs must have an individual 2-year service agreement and an eligible plan-this means the employee receives service under an individual account for which the employee him/herself has financial responsibility.
CRUs and IRUs are sometimes referred to collectively as "End Users".
Uh, what?
I own my NEXT phones once I pay them off. Sold them both on Craigslist.
What on earth gave you that idea?
Most people don't pay attention to "revenue per line".
Carriers got burned with declining revenue per line (aka). If someone pays $200/month for 4 lines (all with subsidies worth $20/month per line). Carriers revenue per line was about $200/4 (- $20 subsidy per line).
So the carriers quickly figured they were making only around $30/line when subsidies were factor in with older tier voice plans were data and and texting were optional (more lucrative add ons in terms of profits).
So they got people paying $100/(15gb) plus $15/line (no subsidies). So around $160/4 line. Bam. $40/line.
Carrier increased their per line reveneue
Carriers got burned with declining revenue per line (aka). If someone pays $200/month for 4 lines (all with subsidies worth $20/month per line). Carriers revenue per line was about $200/4 (- $20 subsidy per line).
So the carriers quickly figured they were making only around $30/line when subsidies were factor in with older tier voice plans were data and and texting were optional (more lucrative add ons in terms of profits).
So they got people paying $100/(15gb) plus $15/line (no subsidies). So around $160/4 line. Bam. $40/line.
Carrier increased their per line reveneue
This isn't about customer benefit or transparency or even ending confusion in pricing. This is about what every company (not just cell companies) wants, PROFIT. This change increases their profit margin.
And in comparison to their old $30 for 2GB plans, Mobile Date Share is a MUCH Better deal and maybe even cheaper depending on how many phone you used to have on the plan and what plan you had.
However, for many of us on Unlimited data, even with multiple phones, this is a worse deal.
For example my plan.
I have 2 iPhones.
iPhone 1 - 600 min plan for $60, unlimited Family Texting for $30 and unlimited Data for $30. So that is $120 (with $5 increase, $125)
iPhone 2 - Family plan fee $10, 2GB data plan $30. So that is $40
Combined bill - $165 before taxes and fees. Now I have a FAN account that puts a discount on everything. My actual bill is $134 with taxes, this will rise to $140 with the $5 increase.
I buy a phone every year, so 2 iPhone for every 2 year contract.
$300 + $300 = $600
$3,360 2 yrs of plan + $600 of iPhones = $3,960
Now lets switch to a NEXT and mobile data share plan.
My normal usage on my phone is about 20GB a month (it was about 8GB, until they lifted the throttle cap)
My wife phones was about 500MB of her 2GB (stay at home mom)
So we need about 20.5GB so that would be the 20GB plan and I pay more attention to my usage (download apps only on wifi, podcasts, etc), $140 a month, my FAN discount on that is about $112 month.
Now add 2 phones on on Next fees, $30 a month
so $140 + $30 = $170 month. (note this doesn't include taxes/fees, my before cost does)
Now the actual cost of 2 iPhones every 2 years, $750 x2 = $1500
so $170 x 24 = $4,080 + $1500 = $5,580
$5,580 - $3,960 = $1,620 increase
Even if I drop to the $100 plan, $80+$30 = $110 x 24 = $2,640 +$1500 = $4,140
So please stop saying this is a good change that will make stuff cheaper.
And in comparison to their old $30 for 2GB plans, Mobile Date Share is a MUCH Better deal and maybe even cheaper depending on how many phone you used to have on the plan and what plan you had.
However, for many of us on Unlimited data, even with multiple phones, this is a worse deal.
For example my plan.
I have 2 iPhones.
iPhone 1 - 600 min plan for $60, unlimited Family Texting for $30 and unlimited Data for $30. So that is $120 (with $5 increase, $125)
iPhone 2 - Family plan fee $10, 2GB data plan $30. So that is $40
Combined bill - $165 before taxes and fees. Now I have a FAN account that puts a discount on everything. My actual bill is $134 with taxes, this will rise to $140 with the $5 increase.
I buy a phone every year, so 2 iPhone for every 2 year contract.
$300 + $300 = $600
$3,360 2 yrs of plan + $600 of iPhones = $3,960
Now lets switch to a NEXT and mobile data share plan.
My normal usage on my phone is about 20GB a month (it was about 8GB, until they lifted the throttle cap)
My wife phones was about 500MB of her 2GB (stay at home mom)
So we need about 20.5GB so that would be the 20GB plan and I pay more attention to my usage (download apps only on wifi, podcasts, etc), $140 a month, my FAN discount on that is about $112 month.
Now add 2 phones on on Next fees, $30 a month
so $140 + $30 = $170 month. (note this doesn't include taxes/fees, my before cost does)
Now the actual cost of 2 iPhones every 2 years, $750 x2 = $1500
so $170 x 24 = $4,080 + $1500 = $5,580
$5,580 - $3,960 = $1,620 increase
Even if I drop to the $100 plan, $80+$30 = $110 x 24 = $2,640 +$1500 = $4,140
So please stop saying this is a good change that will make stuff cheaper.
Your posts come off as pro-financing. Not sure if it's the tone or combativeness.
Okay, but that's not the point. Your argument is "newer plans are more expensive than older plans". Of course they are! The argument is, for new users this deal isn't any worse really. In fact, if you and your friends get together, you can make a killing. Every month my family of 7 splits 50 GB and we each pay about $33.50 a month.