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

[rui no onna]

That really wasn't true with the old plans. Yes they obviously covered the subsidy through the 2 year agreement, but they didn't give you a discount if you chose not to use the subsidy. So you were essentially throwing away an extra $450 if you chose to buy an iPhone off contract.

For those of us who are still on old plans for things like unlimited, it still makes sense to renew the contract in exchange for a discount

Definitely, it does. That's pretty much why carriers have enforced data plans on smartphones - to pay for subsidy.

However, as you'll notice from this thread, there are folks who switched to the new plans for the discounts and are still expecting subsidized pricing.

 

[mhdena]

I have
450 minutes anytime
5000 night & weekend
Mobile to any Mobile
Unlimited Text
Unlimited Data
Rollover
A-List
Fan
$70 and change per month

Ordering a $299 + tax iphone 6
Trade-in iphone 4 = -$200

So for $100 + the tax I have an iphone 6 64gb

Bill still stays $70 and change.

I love the subsidy

 

[rui no onna]

You're totally right that that is the way an individual customer should think about it, but it's not quite right if you look at Apple and carrier financial statements. The carriers are actually getting a discount off MSRP for their inventory (though they're not passing those savings on to customers--with the switch away from subsidies and ETFs, that's how AT&T and others can still maintain their profits with "0%" loans on the hardware).

Yeah, that's one of my gripes about it. I remember reading in one quarterly report that iPhone ASP is $500 (all models and configs). Guessing the ETF really is the maximum amount carriers subsidize. That said, it's almost impossible to find iPhones for less than MSRP unless you go used so it's not like you'll get better pricing elsewhere.

 

[pdxmatts]

I have
450 minutes anytime
5000 night & weekend
Mobile to any Mobile
Unlimited Text
Unlimited Data
Rollover
A-List
Fan
$70 and change per month

Ordering a $299 + tax iphone 6
Trade-in iphone 4 = -$200

So for $100 + the tax I have an iphone 6 64gb

Bill still stays $70 and change.

I love the subsidy

But this thread is about the value plan which you aren't on. The value plan was definitely a factor for people who had 3 or 4 lines and wanted to save money $80-$100 monthly. You have a good grandfathered plan, but it isn't a fair comparison to the people who can't get a plan like that anymore. Obviously subsidizing for you is a better deal than the rest.

 

[dharadvani]

Bill still stays $70 and change.

I love the subsidy

It's not the subsidy you love--it's the grandfathered plan and your FAN discount.

The subsidy isn't saving you any actual money. In fact, it's the opposite: you'll be paying that $70 forever, even if you never upgrade your phone again. Eventually the subsidy gets paid off, but your plan never drops in price.

In your specific case, that's fine, because you've got a cheap plan with unlimited data, and it'd probably be worth keeping even if you had to pay full price for the phone, which you will have to do sooner or later (I'd be a little surprised if AT&T still offered the subsidized option at all by the time the iPhone 7 rolls around).

 

[Moshe1010]

I'm 63 years old and I just read this whole thread with amusement. I have one question. Do they still teach math in the public schools?

Were they teaching English back in the '60s?

 

[bniu]

Every iPhone I've gotten was on a 2 year plan and subsidized. The PLAN NEVER CHANGED.

My 10GB plan with three lines is $145 (100 + 15/per) because of the discount, whatever.

If I do Next, my plan doesn change. I pay $949 for the 6+ 128GB. I MIGHT AS WELL BUY IT OUTRIGHT UNLOCKED, WHAT DEAL IS THAT?

Okay, if I wait for end of contract, I get subsidized with a 2 year commitment. Fair enough. MY PLAN SHOULD NOT CHANGE.

But it is. AT&T has proclaimed that you aren't worth it and will remove the $25 discount. Why? For what reason?

FOR THIS REASON: To get you to buy the phone full pop. And I can't believe the number of people saying "yeah dude, Next is awesome, great way to go." Really? You plan stays the same and you pay LIST PRICE and you're OK with this?

Dear AT&T: Stop being creeps. If I renew with you, I'll stay for 2 years and get the subsidized price. LEAVE THE PLAN ALONE like you have every time in the past.

Oh, last thought: When iPhone 5 came out, AT&T lifted the 2 -year contract and allowed anyone to upgrade: new 2 year plan, NO change in the price, subsidized phone. Time to petition AT&T and tell them we're onto them and to cut the garbage.

When you switched to the 10GB plan with 3 lines for $145, you made a deal with AT&T. You agreed to stay with AT&T through the end of your service contract. You also agreed to forfeit all future subsidized upgrades and AT&T agreed to zero out any subsidies you were still paying off via the subsidy recoup built into your previous plan. You also agreed with AT&T that if you wanted them to subsidize your phone in the future, you would pay them back $25/month for 24 months with a new ETF as collateral.

 

[ZipZap]

One thing I have realized from this thread is that I screwed myself over by sticking with the older Mobile Share (non-Value) plan for the past six months...

Here is my math on the Service and iPhone costs per month and over 12 or 24 months vs current and vs not getting an iPhone. It's a no-brainer for me to change from our current 4gb Mobile Share (non-Value) plan to the 2gb Mobile Share Value plan as my wife and I average just shy of 2gb of use per month. Even in a worst case scenario of going over each month by 500mb, we still save over the current plan. Even the 24% FAN discount doesn't seem to play that big a role anymore...

To clarify, columns are:
1 - current 4gb plan
2 - swap to 4gb mobile share value
3 - change to 2gb mobile share value
4 - change to 2gb mobile share value and go over by less than 1gb
5 - change to 2gb mobile share value and go over by less than 2gb
6 - change to 2gb mobile share value and buy iPhone 6 prepaid (299)
7 - change to 2gb mobile share value and go over by less than 1gb and buy iPhone 6 prepaid (299)

As for the iPhone, it seems like a no-brainer to go with the Next 12 plan.
I have the 2 year prepaid vs Next 12 vs Next 18 at 12/18/24 months.

Below the cost of the iPhones, I have totals for Service and Phone and cost differences compared to not buying an iPhone for 12-24 months. Even getting a new iPhone 6 now and swapping for a new iPhone 6s in 12 months looks like a better deal than prepaying for the iPhone 6 and staying with it for 24 months.

E

*I should point out that I actually went with the prepaid option initially and have it ready for in store pickup on 9/19. Spoke to an AT&T rep who told me I could change to NEXT at the time of pickup. Hope she was right...

What is that $15 monthly charge for a 2 year contract?

I am not on mobile share. I Bought by iPhone for $499 +40. That's it, no other phone charge.

I don't own it for 2 year but I don't have a monthly hardware fee.

At then end of my 2 year contract I can sell the phone and lower the $549. So my phone cost is even less.

My service bill did not changed
My service plan did not change

With next, if you don't pay to 20 or 24 months you don't get the phone (lost value)

If I renew at 12 I turn in the phone for NO value and start another 20 or 24 month payment plans

All next lets you do is switch out phones more quickly.

As for mobile share….anyone on that plan who was only paying $15 a device will now pay $40 if they upgrade the device. This was never a secret and one of the things that will eventually make that mobile plan switch a joke (unless you don't upgrade your phones ever again).

So why is Next anything special or ever a savings?

BTW…I assure you I will get that $40 upgrade fee waived.

----------

But this thread is about the value plan which you aren't on. The value plan was definitely a factor for people who had 3 or 4 lines and wanted to save money $80-$100 monthly. You have a good grandfathered plan, but it isn't a fair comparison to the people who can't get a plan like that anymore. Obviously subsidizing for you is a better deal than the rest.

No it was not. And that's why everything is so muddled here.

The only thing related to the value plan….the fact that your upgraded device now costs $40.

Still why is next worth it? Where is the actual savings?

 

[pdxmatts]

No it was not. And that's why everything is so muddled here.

The only thing related to the value plan….the fact that your upgraded device now costs $40.

Still why is next worth it? Where is the actual savings?

This is about people who switch to the value plan and are upset that if they buy a phone under this plan with a subsidized 2 yr agreement, they will no longer have the value monthly discount. They are offered the NEXT program in order to keep the value plan prices. If you want to keep your plan at $40 per line, then you can subsidize, if not, then you go on the NEXT program or buy a phone outright without NEXT. NEXT is just another way of financing the phone without losing your value discount.

The math has been discussed in length on here. Some save on the 2 yr agreement, some save on the NEXT program. Some save by just buying a phone outright. The fact is you will eventually be paying full price for that upgraded phone no matter what you choose. If you are eligible for an upgrade, you need to do the math to see what benefits you the most. Here is a link to look at http://www.cnet.com/news/contract-or-no-contract-for-iphone-6-which-is-the-better-deal/

 

[dodoei]

many of you are missing the points here. a lot of people had comparable or even lower monthly bill for their grandfathered subsidized plan before switching to the mobile share. When they switched, they had no idea they switched to a unsubsidized plan and they were NOT saving on the plan itself. It was NOT like they had $40 per line first then saved $25 by switching. that's where the shock comes when they upgrade. Th point is, ATT in creased monthly bill and by using the NEXT program simply confused a bunch of people. I know that people with multiple lines and not so good old plans may actually benefit from NEXT, but people with grandfathered unlimited plans should tjink twice before switch.

 

[pdxmatts]

many of you are missing the points here. a lot of people had comparable or even lower monthly bill for their grandfathered subsidized plan before switching to the mobile share. When they switched, they had no idea they switched to a unsubsidized plan and they were NOT saving on the plan itself. It was NOT like they had $40 per line first then saved $25 by switching. that's where the shock comes when they upgrade. Th point is, ATT in creased monthly bill and by using the NEXT program simply confused a bunch of people. I know that people with multiple lines and not so good old plans may actually benefit from NEXT, but people with grandfathered unlimited plans should tjink twice before switch.

I totally agree with you. Not sure what plan the OP had before switching to a value plan, so the topic is really all over the place.

 

[iZollo]

That is why I am keeping my old plan. Every year I do a upgrade swap and sell my old phone for what I paid for it or more and buy a new phone each year for $299. If you are able to do what I do and I am always able to get the $40 upgrade fee waived every year it is the way to go instead of next . It also helps that I have 25% discount FAN account. I see no reason to ever switch from my old unlimited data plan.

 

[wxnats]

I switched to Next with 6+ but AT&T messed up my monthly service charges (same as my pre-Next plan charges).

 

[chris03]

I don't think this question has been asked in here, but I apologize if it has.

If I upgrade via 2yr contract when I get the 6, how long till I would be eligible for the Next program? Immediately, since I haven't used it yet? Or is there some time frame I have to wait?

 

[Knowimagination]

I don't think this question has been asked in here, but I apologize if it has.

If I upgrade via 2yr contract when I get the 6, how long till I would be eligible for the Next program? Immediately, since I haven't used it yet? Or is there some time frame I have to wait?

From the AT&T Site

AT&T Next is available for current customers who are eligible for an upgrade and whose accounts are in good standing, or for new customers with qualifying credit.

So you would not be eligible for next until you were eligible for another upgrade on that line.

 

[hipnetic]

When you switched to the 10GB plan with 3 lines for $145, you made a deal with AT&T. You agreed to stay with AT&T through the end of your service contract. You also agreed to forfeit all future subsidized upgrades and AT&T agreed to zero out any subsidies you were still paying off via the subsidy recoup built into your previous plan. You also agreed with AT&T that if you wanted them to subsidize your phone in the future, you would pay them back $25/month for 24 months with a new ETF as collateral.

Perfect summary. This should be printed at the top of the MacRumors website.

 

[tbobmccoy]

I switched to Next with 6+ but AT&T messed up my monthly service charges (same as my pre-Next plan charges).

They don't charge you a NEXT installment until you receive your phone, so it'll be on your next bill after that.

 

[jcmeyer5]

So the Next costs you $190 less BUT you have to turn your phone in when you get a new one and are essentially getting $190 for it whereas if you sold it yourself, you could get quite a bit more.

No. If you pay it off, you don't turn it back in. Your example assumes that you go the entire term of the Next program. In that case, you keep the phone. If you upgraded early before it was paid off and didn't elect to pay the balance in full, THEN you would have to turn it in.

 

[Newtons Apple]

Were they teaching English back in the '60s?

Only thing try are teaching now is how to be a good bees in the collective hive. Nothing competitive or to inspire one to rise to the top or get ahead. Legalize dope and keep the little bees happy and pacified.

No tests and no homework give the progressive unions teachers a pass on performance.

Enjoy!

 

[Prise]

I have
450 minutes anytime
5000 night & weekend
Mobile to any Mobile
Unlimited Text
Unlimited Data
Rollover
A-List
Fan
$70 and change per month

Ordering a $299 + tax iphone 6
Trade-in iphone 4 = -$200

So for $100 + the tax I have an iphone 6 64gb

Bill still stays $70 and change.

I love the subsidy

Right, this is a good example where a subsidized plan is more valuable then all of the unsubsidized ones, including buying the phone outright. With 450 rollover & A list, your minutes are not restrictive enough to warrant paying for unlimited minutes.

 

[Ghostbuster386]

It's easier to compare it without the monthly usage fees and just compare phone vs phone.



Contract

$199 - phone price

$40 - upgrade fee

$600 - $25/month x 24 month contract



$839 total



Next



$0 - phone price

$0 - upgrade fee

$649 - $32.45/month x 20 months or $27.05 x 24 month



$649 total







So the Next costs you $190 less BUT you have to turn your phone in when you get a new one and are essentially getting $190 for it whereas if you sold it yourself, you could get quite a bit more.



Next does also allow you to upgrade more often though, so that's a plus, but the phone is never paid off, you always have this phone payment. It's very similar to a car lease vs car loan and it depends on your habits and how often you change your phone.

The phone is paid off after either 20 or 24 months and then it's your phone. If you pay off the device you don't have to trade the device back in. The only time you trade in the device is after 12 or 18 months if you want to upgrade.

 

[Sodner]

What stinks for me is that I got my iPhone 5s last year at release with my available upgrade. A few months ago I switched my plan to the value plan. So now if I get a 6 I don't get the full subsidized price of $299 for a 64GB. I have to pay $549. Yet I still loose the $25 discount without receiving the benefit of a full subsidy.

I therefore ordered a TMo no contract phone at full price which I'll use on AT&T.

----------

The phone is paid off after either 20 or 24 months and then it's your phone. If you pay off the device you don't have to trade the device back in. The only time you trade in the device is after 12 or 18 months if you want to upgrade.

Why is it called "Next 12" when they show payments for 20 months? I thought the whole purpose of the "12" was to get a new phone every year?

 

[SPNarwhal]

It's not 25 a month.. it's 25 EXTRA a month.
If you're on a plan with either NEXT or your own phone, the monthly cost is 15. If you're on a plan under contract, your monthly cost is 40.

I did the math for my own situation and NEXT made sense for me.

I'm getting 128gb iPhone 6+, which is 950 retail, or 500 on contract.
500 on contract + 40x24
or
950 on NEXT + 15x24

Turns out cheaper. With their 100 dollars off, it's even more of a difference in the long run. (although, only about ~300 difference, but still.)

----------

What stinks for me is that I got my iPhone 5s last year at release with my available upgrade. A few months ago I switched my plan to the value plan. So now if I get a 6 I don't get the full subsidized price of $299 for a 64GB. I have to pay $549. Yet I still loose the $25 discount without receiving the benefit of a full subsidy.

I therefore ordered a TMo no contract phone at full price which I'll use on AT&T.

----------



Why is it called "Next 12" when they show payments for 20 months? I thought the whole purpose of the "12" was to get a new phone every year?

It is payments for 20 months if you plan to buy the phone and keep it. Otherwise, you pay it off for 12 months and then you can trade that phone in for an upgrade. (after 12 months)

the NEXT 18 is 24 months payment to buy the phone 100%, but only required to pay 18 if you want to then trade it in toward an upgrade.

 

[Knowimagination]

Why is it called "Next 12" when they show payments for 20 months? I thought the whole purpose of the "12" was to get a new phone every year?

It is called Next 12 because you can upgrade after making 12 payments. If you want to fully pay off the phone then it takes 20 payments.

 

[nostresshere]

What stinks for me is that I got my iPhone 5s last year at release with my available upgrade. A few months ago I switched my plan to the value plan. So now if I get a 6 I don't get the full subsidized price of $299 for a 64GB. I have to pay $549. Yet I still loose the $25 discount without receiving the benefit of a full subsidy.

I therefore ordered a TMo no contract phone at full price which I'll use on AT&T.

----------



Why is it called "Next 12" when they show payments for 20 months? I thought the whole purpose of the "12" was to get a new phone every year?

I am so sorry you can not see the full picture. If you went with NEXT, the price would be fine. You would not pay the extra for service, only for the phone. Subsidized is NOT the plan for you.

DO THE 24 MONTH MATH.

As to the NEXT12 - it will give you the option to upgrade again at 12 months with a trade in. Or to keep paying and then own the phone. Your choice.