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AT&T will increase monthly bill for standard upgrades vs Next

C

CruiseToGo

macrumors member
Original poster
Sep 22, 2012
93
43
Just spoke with At&t to confirm my upgrade eligibility for tonight's preorder. The rep was really pushing the Next program, which I have not been interested in since I have been able to toggle my upgrades yearly between my different lines (keeping some with older models longer), plus I've been able to sell my old iphone on the open market for at least the cost of my new phone.

This year is different. Firstly, I have to pay the $40 upgrade fee, but I also found out today that if you do not choose the Next option, your bill will automatically increase an additional $25/month per line that you upgrade.
 
CruiseToGo said:
Just spoke with At&t to confirm my upgrade eligibility for tonight's preorder. The rep was really pushing the Next program, which I have not been interested in since I have been able to toggle my upgrades yearly between my different lines (keeping some with older models longer), plus I've been able to sell my old iphone on the open market for at least the cost of my new phone.

This year is different. Firstly, I have to pay the $40 upgrade fee, but I also found out today that if you do not choose the Next option, your bill will automatically increase an additional $25/month per line that you upgrade.
Click to expand...

wtf, where does it say that.
 
This is true if you are on the Mobile Share Value Plan. A subsidized upgrade will remove the $25/mo per line discount that you're current receiving.
 
DravenGSX said:
This is true if you are on the Mobile Share Value Plan. A subsidized upgrade will remove the $25/mo per line discount that you're current receiving.
Click to expand...

So upgrading will increase my monthly bill 25.00 a month? That is insanity, where does it say this in writing?
 
I'm assuming he means for the bring your own device plans - IE the 4 lines and 10GB for 160/month plans that don't have the device subsidy bundled in will see a $25 increase in the plan price (per line) if trying to upgrade at the reduced rate.

This has been normal protocol ever since they released the plans and a hidden shock and cause of a lot of frustration for people.

For people on older plans then the only change is the $40 upgrade fee.
 
CruiseToGo said:
Just spoke with At&t to confirm my upgrade eligibility for tonight's preorder. The rep was really pushing the Next program, which I have not been interested in since I have been able to toggle my upgrades yearly between my different lines (keeping some with older models longer), plus I've been able to sell my old iphone on the open market for at least the cost of my new phone.

This year is different. Firstly, I have to pay the $40 upgrade fee, but I also found out today that if you do not choose the Next option, your bill will automatically increase an additional $25/month per line that you upgrade.
Click to expand...

Wow, that's ridiculous. I guess that's one way to get people in Next lol
 
This is a bit of a misleading thread...

This only applies to those on a mobile share plan... If you use a standard upgrade on a mobile share plan then you loose the $25 credit.... If you use the next program or buy your phone outright then you get the $25 credit every month...

I assume this is what the thread is referencing.. Correct?

Mobile Share Value: Pricing is for wireless service only and includes monthly plan charge and monthly access charge per device. AT&T NextSM smartphone installment charges are extra. Smartphones sold separately. Access charge savings: Compares Mobile Share Value plan smartphone access charge with a smartphone on AT&T Next ($15 or $25 per month) to one on a 2-year agreement ($40 per month). Per smartphone discount is $25 on plans 10GB and larger and $15 for plans less than 10GB. For plans 10GB or higher, customers with smartphones on a 2-year agreement prior to February 2, 2014, are eligible for the $25 per month access charge discount. For plans 2GB to 6GB, customers with smartphones on a 2-year agreement prior to March 9, 2014, are eligible for the $15 per month access charge discount. This discounted pricing is available as long as you keep your phone. If upgrading to a new phone, the discount is only available via AT&T Next, when you bring your own phone, or when you buy a new phone at full price. If you upgrade to a new 2-year agreement, the discount is lost. Other charges and restrictions apply. See att.com/mobilesharevalue for full Mobile Share Value plan pricing details.

IF you are on mobile share right now and use a 2 year upgrade you WILL LOOSE the $25 discount...
 
Reminisce32 said:
The one-time $40 or the $25 increase per month?
Click to expand...

$25/month. Unless you are on a mobile value share plan, every month you pay a higher bill that has the 2 year subsidy built into it. Mobile share got rid of that but if you upgrade a line on mobile share, which is $15/month per phone, becomes $40/month if you use the traditional upgrade. Plus you have to pay a $40 upgrade fee.

Tl;dr use next or buy outright if on mobile share, use upgrade if on grandfathered unlimited data plan. All others call ATT to check first.
 
This is correct if you're on the Mobile Share Plans. You'll lose your $25 discount if you sign a 2 year contract. If you get the 16gb iPhone, you'll be paying 199+tax+upgrade fee+600 (25*24). Might as well to Next.
 
Yes, to clarify, I am on the 10GB Mobile Share Value plan. It may be different for other plans out there. Here's what it says on at&t website

"If you upgrade to a 2 year wireless contract, you're no longer eligible for the Mobile Share Value discount of $15/mo or $25/mo. To get the discount, upgrade with AT&T NextSM or pay full price for a smartphone/bring your own."
 
CruiseToGo said:
Yes, to clarify, I am on the 10GB Mobile Share Value plan. It may be different for other plans out there. Here's what it says on at&t website

"If you upgrade to a 2 year wireless contract, you're no longer eligible for the Mobile Share Value discount of $15/mo or $25/mo. To get the discount, upgrade with AT&T NextSM or pay full price for a smartphone/bring your own."
Click to expand...

It makes sense. Your plan is cheaper because there is no phone subsidy built in. You want them to build it back in, sign the contract.

Just buy the phone on next. It will be cheaper in the long run.
 
Contract
$199 - discounted device price
$40 - upgrade fee
$960 - two years of $40 a month per line monthly usage fee

$1199 - total spent on upgrade and usage over two years

Next
$0 - No initial payment with Next
$0 - no upgrade fee with Next IIRC
$1032 - two years of $15 a month per line monthly usage + monthly device payment (approx. $28)

$1072 - total spent on upgrade and usage over two years

I think it's actually cheaper to go with Next. $167 cheaper to go with Next if you have Mobile Share Value. Of course taxes aren't factored in, but worst case scenario, you won't be paying more with Next if the math is correct.
 
Surprised people are surprised that when AT&T sells you a subsidized phone they aren't somehow getting that money back.

$25/mo x 2 years = $600. On top of the subsidized price. No thanks.
 
Steviejobz said:
Wow, that's ridiculous. I guess that's one way to get people in Next lol
Click to expand...

You make it sound like next is a bad thing. Actually, it is very smart for the consumer - it's a zero percent loan to get a phone. You only pay tax on the phone (full value) when you use next. Then, you spread the payment with ZERO interest over 20 months - So an $849 phone you pay $42.45 a month for 20 months. This is getting a 20 month loan with no fees and no interest, even Warren Buffet would take this deal.

Here is where I believe ATT makes money with the next plan:

After 1 year you will have paid $509.40 towards your $849 phone. If you want to upgrade to the new model in the following year, you can just turn your phone in, get a new phone and continue the payments. So ATT gets your year old phone that you have paid $509.40 and will sell it off for a profit.

What you should do is before the new phone comes out next year, PAY OFF YOUR PHONE IN FULL - this makes you eligible to restart next again with the new phone, then SELL the phone you just paid off. Anything over (849 - 509.40 = $339.60) is cash in your pocket. For reference I sold my iPhone 5 last year after I got my 5s for $575, I sold my 4S the year before for $565.

Next is actually a great way to use ATT's money to get a new phone - you also do NOT PAY THE $40 UPGRADE FEE when you use next ;)
 
With my grandfathered unlimited data, would I save any money by buying it outright on my monthly bill, or would my monthly bill still be the same?
 
nikhsub1 said:
You make it sound like next is a bad thing. Actually, it is very smart for the consumer - it's a zero percent loan to get a phone. You only pay tax on the phone (full value) when you use next. Then, you spread the payment with ZERO interest over 20 months - So an $849 phone you pay $42.45 a month for 20 months. This is getting a 20 month loan with no fees and no interest, even Warren Buffet would take this deal.

Here is where I believe ATT makes money with the next plan:

After 1 year you will have paid $509.40 towards your $849 phone. If you want to upgrade to the new model in the following year, you can just turn your phone in, get a new phone and continue the payments. So ATT gets your year old phone that you have paid $509.40 and will sell it off for a profit.

What you should do is before the new phone comes out next year, PAY OFF YOUR PHONE IN FULL - this makes you eligible to restart next again with the new phone, then SELL the phone you just paid off. Anything over (849 - 509.40 = $339.60) is cash in your pocket. For reference I sold my iPhone 5 last year after I got my 5s for $575, I sold my 4S the year before for $565.

Next is actually a great way to use ATT's money to get a new phone - you also do NOT PAY THE $40 UPGRADE FEE when you use next ;)
Click to expand...

Wow, you are getting a lot more for your older device than I had been getting. Where are you selling it? For example I paid $400 for my 64GB 5S and I think I can get $300 on Amazon, Gazelle, etc.
 
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