Cnet explains it pretty well.
For savvy wireless shoppers, Apple's new iPhone Upgrade Program offers the freedom to shop for the best deal on wireless service. But before you make any commitments, let me take you through the details.
Two weeks ago,
Apple announced that it will sell unlocked iPhones through a new monthly installment plan. The plan lets customers upgrade to a new iPhone each year by simply turning in their old devices for new ones, similar to what T-Mobile and Sprint offer, but without tying themselves to a single carrier.
For consumers who have dreamed of a day when they could buy one iPhone and take it to any wireless operator in the US, the plan sounds brilliant. It finally allows American wireless consumers to shop for the highest-quality and lowest-priced network in their area without the hassle of switching phones.
But the plan poses a few questions. Will the program let you choose a prepaid or regional operator? What about older wireless plans? Will you have to give up perks like unlimited data? Will special features like Wi-Fi calling still work with devices offered on these plans?
Ask Maggie column helped customers figure out how Apple's new program stacked up to similar plans from the major carriers. In this edition, I delve deeper into where and how iPhones bought through Apple's program can actually be used.
Here's a look at the most frequently asked questions I received over the past week regarding this program.
Can I activate a new iPhone 6S or 6S Plus on a service from a prepaid carrier or from a regional operator, like C Spire, if I buy it through the Apple iPhone Upgrade Program?
No. An Apple spokesman confirmed that the program
requires that customers sign up for one of the four major wireless carriers when they purchase one of the new iPhones. The phone must be activated, at least initially, on AT&T, Verizon, T-Mobile or Sprint while you are in the store.
After you sign up for service and leave the store, you can cancel your service and sign up with a prepaid or regional carrier, as long as the iPhone works on its network. Since most prepaid services in the US lease capacity from one of the four major wireless companies, you should be fine. Many regional operators support the same radio frequencies and 4G LTE bands as the major operators, so the phone should also work there.
What about prepaid brands owned by the large carriers?
Three of the nation's largest wireless providers operate separate prepaid brands. AT&T owns the Leap/Cricket brand; T-Mobile owns MetroPCS; and Sprint owns Boost Mobile and Virgin Mobile. Unfortunately, you will not be able to get service for one of these brands when you initially sign up for the iPhone Upgrade Program. As mentioned above, you must activate the phone on a major carrier, after which you can cancel your month-to-month service and then sign up with one of these prepaid brands.
keep the unlimited data plan, customers can either bring their own device to the service or purchase a device at full price from Verizon. Using the Apple iPhone Upgrade Program would fall under the category of bringing your own device to Verizon. This is good news for customers who have been holding onto Verizon's older unlimited data plan, which otherwise is no longer available. Now these customers have a way to finance the cost of a new device and participate in an early-upgrade program.
I'm a T-Mobile customer. Will iPhones sold under the Apple iPhone Upgrade Program support Wi-Fi calling?
A T-Mobile representative confirmed that the new iPhone 6S and 6S Plus will support Wi-Fi calling on T-Mobile's network, even when purchased through Apple's iPhone Upgrade Program.
Wi-Fi calling allows phone calls to be transmitted over a Wi-Fi network instead of T-Mobile's cellular network, which offers clearer calls when indoor cellular signals are weak. Wi-Fi calling is supported on all iPhone models past the iPhone 5C, according to T-Mobile.
The bottom line:
The Apple iPhone Upgrade Program offers consumers more flexibility in choosing a carrier. But there are a few catches, including the requirement to activate the new iPhone at a store. The good news is that consumers aren't stuck with their first choice -- you're free to choose a prepaid carrier, regional operator or even a wireless provider in a different country as soon as you walk out of the door. Verizon customers with grandfathered unlimited data plans have extra reason to sign up for the program.
Ask Maggie is an advice column that answers readers' wireless and broadband questions. If you have a question, I'd love to hear from you. Please send me an e-mail at maggie dot reardon at cbs dot com. And please put "Ask Maggie" in the subject header. You can also follow me on Facebook on my Ask Maggie page.
