For Most People, Contract Upgrade is Bad, Next is good, Buy it: Why? (AT&T)

[nostresshere]

I was under the impression that you could just pay off under the NEXT plan at anytime. Some people here are saying different.

Quote from ATT website : You can also pay off your full installment balance at any time.



What is the story?

 

[jlake02]

I was under the impression that you could just pay off under the NEXT plan at anytime. Some people here are saying different.

Quote from ATT website : You can also pay off your full installment balance at any time.



What is the story?

This exactly. I'm confused by some earlier posts. You can pay it off any time you want. It's 0% financing, period.

 

[IndoX]

This exactly. I'm confused by some earlier posts. You can pay it off any time you want. It's 0% financing, period.

You can pay off the balance at any time. You can't make bigger payments.

Example: AT&T requires you to pay 60%* of device before allowing an early upgrade at the 12 month mark. You cannot make a larger payment 2 months prior to be eligible to upgrade at 12 months. You will have to wait until 60% of the device is paid before upgrading.

You DO have the option of paying off the complete balance. But you do not have the option of paying off larger payments to shorten your lease agreement. It will always be 20-24 months depending on the carrier.

* Some carriers require 50-60%. I forgot how much AT&T is exactly.

You either fully own the device or are making payments for X amount of months.

 

[AZhappyjack]

Next is no longer a ripoff. It was when it was first announced because AT&T tried to offer it without discounting plans.

I just did the cost-benefit-analysis for my 5-line family plan. It’s still a no-go for me.

The difference in cost between the current Family Share plan ($265/month including taxes/fees/FAN discount) and the Mobile Share plan ($177/month after FAN discount, but before tax/fees - because AT&T can’t tell me what those will be) will end up being less than $50/month.

Assumptions:
We will upgrade all the lines whenever there’s an upgrade available.
The NEXT payment will be $28/month/line, per the AT&T rep who was helping me sort this out.
The $38 for "taxes/fees" was an estimate by the AT&T rep, as well.

Staying on the Family Share plan and upgrading every year will save me $1165 every 2-year cycle.

 

[rui no onna]

Question, why is the Mobile Share monthly $215? Wouldn't it just be $175 for 10GB/5 lines? In most cases, the FAN discount usually cancels out the taxes.

 

[NikeTalk]

Yes. You would pay $75 for the 10GB plan after FAN discount. Then add $15 for the the phone and you have $90/month plus taxes and fees.

25% comes off the $100 a month

So i'm not getting both 25% off and the $25 per line discount? I want to switch from unlimited but not if I can't get both.

 

[sixxmum]

You can pay off the balance at any time. You can't make bigger payments.

Example: AT&T requires you to pay 60%* of device before allowing an early upgrade at the 12 month mark. You cannot make a larger payment 2 months prior to be eligible to upgrade at 12 months. You will have to wait until 60% of the device is paid before upgrading.

You DO have the option of paying off the complete balance. But you do not have the option of paying off larger payments to shorten your lease agreement. It will always be 20-24 months depending on the carrier.

* Some carriers require 50-60%. I forgot how much AT&T is exactly.

You either fully own the device or are making payments for X amount of months.

So... put the "extra" payment into a sock drawer each month until you have enough to pay off the amount and then your lease agreement is over. The agreement is until the phone is paid off or 20/24 months, whichever comes first.

Basically, everyone should do his/her own cost analysis. For me, with 2 phones to upgrade, buying outright and buying NEXT and then keeping the phones for 2 years end up exactly the same cost. Buying with a contract and keeping the phone for 2 years is more.

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So i'm not getting both 25% off and the $25 per line discount? I want to switch from unlimited but not if I can't get both.

I'm not totally following you, but IME, the 25% off does not apply to the per line cost. That discount applies only to the mobile share plan. So, for me, with a university discount, I get 20% off of the $100 for the mobile share plan. Then the phones are X per month (either $15 or $25 depending on whether on or off contract). No discount is applied to the phone line costs.

 

[NikeTalk]

I get 25% off thru my FAN. I plan on getting the 10GB plan which says you get another $25 off per, do they stack?

 

[itjw]

As has already been discussed, NEXT was never really a "deal" when it launched, it was just a way to cheaply get a new device if you couldn't afford/or didn't have an available upgrade and had to get the new phone right then (as most of the financially disabled do... who could possibly expect them to wait until they could either afford it or had an upgrade right?).

Now that they offer discounts in addition, it's an ok "deal" I suppose. It's still nothing to write home about, but it's better than a kick in the pants, and better than what it was.

I'll just keep juggling my 5 family lines and upgrade 2 one year, 3 the next, for the forseeable future. I sell my devices annually, used to profit (lately it's about a breakeven with AC+ and upgrade fees considered), and never spend a dime on anything but my heavily discounted plan.

 

[jkel777]

I get 25% off thru my FAN. I plan on getting the 10GB plan which says you get another $25 off per, do they stack?

I'm confused by what you're asking, but yes, I believe they do. You get the 25% off of the actual mobile share plan, and then $25 off each line.

 

[rui no onna]

So i'm not getting both 25% off and the $25 per line discount? I want to switch from unlimited but not if I can't get both.

You can use both discounts but they don't really stack. The 25% only applies to the base plan.

e.g.
10GB $100 - 25% off = $75
Line 1: $40 - $25 discount = $15
Line 2: $40 - $25 discount = $15
Line 3: $40 - $25 discount = $15
Line 4: $40 - $25 discount = $15
TOTAL: $135 (correct)

However, you don't get the following stacking:
10GB $100
Line 1: $40 - $25 discount = $15
Line 2: $40 - $25 discount = $15
Line 3: $40 - $25 discount = $15
Line 4: $40 - $25 discount = $15
TOTAL: $160 - 25% off = $120 (incorrect)

 

[Muscle Master]

If you lose your contract device, you are out of a bundle of money as well. You'll be paying an extra $25/line (essentially a full Next payment) for the remainder of the contract and you'll have to find about $500-$600 for a new iPhone in addition to the increased rate. Losing your phone is a huge no no regardless if you buy outright, Next, or contract.

If you damage it, at least Apple will give you a new one for about $300

T-Mobile's Jump include top tier insurance... If you lost your phone or damage it.. You have to pay bout $175 give or take to get another one... I'm assuming AT&T doesn't have this?

 

[mnsportsgeek]

For Most People, Contract Upgrade is BAD, Next is good, Buy it: Why? (ATT)

T-Mobile's Jump include top tier insurance... If you lost your phone or damage it.. You have to pay bout $175 give or take to get another one... I'm assuming AT&T doesn't have this?

AT&T has insurance, but is it worth it? Deductible plus $10 a month means you're paying $415 over the course of two years for one replacement.

That's a horrendous rip off considering maybe 1 in 7-10 people would actually need a replacement? I'd just pay for the Genius Bar refurb and call it a day.

 

[td1439]

For those asking about a FAN discount. My plan has one, and I just switched to the MSV 2Gb plan on a new 2-year contract*. The base price is $40 for the plan, plus $40/month for each of our two phones. Our FAN discount is only applied to the $40 base section of the plan (so we only get $6/month off the cost).


*Call me crazy for doing a new contract now for the 5S and I'll tell you I got two of them for $12 at Target after getting $100 for each of our 4S's, and my wife will likely be able to talk AT&T into waiving the upgrade fee. She could sell ice to eskimos.

 

[techspin]

And that's where you're wrong. All non-contract lease agreement devices from carriers will not be eligible for any program from: best buy, apple, radioshack, etc until the remaining balance of the device has been paid off. The carriers are well aware of it.

The only thing you'd be able to do is replace the device at the Genius Bar (or else where).

Take it from someone who is currently working for AT&T and has worked for Apple in the past.

I wouldn't stress about not being eligible for a trade in program at any of those stores. Bottom line: Pay off your device on Next and you can do whatever you like with the phone. Work for AT&T and advocate two year contracts? Not surprised.

 

[Eileen89]

The reason I'm not doing it is because I have unlimited data and AT&T won't allow me to keep that plan and be on NEXT. I'm not sure if I'll get an old fashioned contract or buy the phone outright.

^^^THIS^^^



Best reason NOT to use Next!



Not giving up my Unlimited Data Plan so I could pay my phone off with installments! Talk about not making any sense!

This is incorrect. You can still go through AT&T's NEXT program and keep your unlimited Data plan. I've already ran a trial using NEXT and AT&T did not remove my unlimited data plan, as seen in my screenshot here:

 

[mhdena]

This is incorrect. You can still go through AT&T's NEXT program and keep your unlimited Data plan. I've already ran a trial using NEXT and AT&T did not remove my unlimited data plan, as seen in my screenshot here:

Image

You are paying 2x as much for the phone as someone who gets the same subsidized phone. They pay $300 to $400 now plus the same monthly payments as you.

AT&T is not doing Next plans to save you money, you in essence are subsidizing your own self with next.

A person who wants a new phone every year would come out cheaper getting a subsidized phone, sell it for as much as they can after 1 year, and then buy another paying the early upgrade premium.

Next stands for Next Sucker as far as AT&T is concerned.

They would like everyone to be on next or buy outright.

I like the subsidy and will use that for as long as its available.

 

[lordofthereef]

The biggest problem with Next is it takes two years to pay off the phone/contact. Most here want a new phone every year.

I guess I am lucky as I have the resources to pay outright for my phones and do not wish to be under any contract with AT&T!

I am a little confused by this statement (perhaps you don't understand the point of Next from a customer perspective?).

To start, for those who know they will stick it out with the phone for two plus years there is a 24 month plan. For the base line that is something like $27 per month. These folks are free to upgrade at the 18 month mark, however they don't get to keep the phone. They turn it in and get a new one, presumably just continuing their $27 a month. Of course, they also have the option to pay off the remaining balance (at any point during the process).

For those that know they want a new phone every year, they take the 20 month plan at $32 per month. At 12 months they are free to upgrade, but the stipulation is the same; they do not keep the phone, they turn it in.

Frankly, at turn in time you have paid about $400 towards the (based model) phone. Considering a $16GB sells for anywhere from $200-$300 (eBay, Craigslist, etc), there isn't a whole lot of loss there. Of course, if you want to try and recoup that cost you can always pay off the remained of what you owe and go from there.

You actually end up ahead if you make it a habit to use the trade-in programs, such as gazelle, to get cash for your phone, and I know for a fact those programs are rather popular, even with people around here.

 

[AZhappyjack]

Question, why is the Mobile Share monthly $215? Wouldn't it just be $175 for 10GB/5 lines? In most cases, the FAN discount usually cancels out the taxes.

I have one line that has a recent upgrade on. So it’s $100 for the 10GB plan, $40 for one line and $15 x 4 for the other lines - a total of $200. The FAN discount brings it down to $177, and the rep said that he could not tell me the exact charges for taxes/fees, but he "guessed" it to be about $215 after taxes/fees were added.

Even on my current plan, the FAN discount does not cover all the taxes and fees - and I currently get a discount on all of the lines and data plans. With the new Mobile Share, the FAN discount will only apply to the $100 data portion of the plan.

 

[AZhappyjack]

So i'm not getting both 25% off and the $25 per line discount? I want to switch from unlimited but not if I can't get both.

I’ve been told repeatedly by multiple reps that on the Mobile Share plans, the FAN discount only applies to the "data bucket", and not the individual lines - as it is today under the Family Share plan.

And my FAN is only 23%.

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So... put the "extra" payment into a sock drawer each month until you have enough to pay off the amount and then your lease agreement is over. The agreement is until the phone is paid off or 20/24 months, whichever comes first.

Basically, everyone should do his/her own cost analysis. For me, with 2 phones to upgrade, buying outright and buying NEXT and then keeping the phones for 2 years end up exactly the same cost. Buying with a contract and keeping the phone for 2 years is more.

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I'm not totally following you, but IME, the 25% off does not apply to the per line cost. That discount applies only to the mobile share plan. So, for me, with a university discount, I get 20% off of the $100 for the mobile share plan. Then the phones are X per month (either $15 or $25 depending on whether on or off contract). No discount is applied to the phone line costs.

The per line charges are $15 or $40. We have one line that recently received an equipment upgrade, so we would have to pay $40 for that line.

 

[bueller1]

Can I keep unlimited data with AT&T Next?

 

[AZhappyjack]

For those asking about a FAN discount. My plan has one, and I just switched to the MSV 2Gb plan on a new 2-year contract*. The base price is $40 for the plan, plus $40/month for each of our two phones. Our FAN discount is only applied to the $40 base section of the plan (so we only get $6/month off the cost).


*Call me crazy for doing a new contract now for the 5S and I'll tell you I got two of them for $12 at Target after getting $100 for each of our 4S's, and my wife will likely be able to talk AT&T into waiving the upgrade fee. She could sell ice to eskimos.

I haven’t paid an upgrade fee in over 9 years with AT&T (ATT > Cingular > att). That’s a perk of my FAN.

 

[rui no onna]

I have one line that has a recent upgrade on. So it’s $100 for the 10GB plan, $40 for one line and $15 x 4 for the other lines - a total of $200. The FAN discount brings it down to $177, and the rep said that he could not tell me the exact charges for taxes/fees, but he "guessed" it to be about $215 after taxes/fees were added.

Even on my current plan, the FAN discount does not cover all the taxes and fees - and I currently get a discount on all of the lines and data plans. With the new Mobile Share, the FAN discount will only apply to the $100 data portion of the plan.

Not quite an apples to apples comparison then since you've got the cost of an extra phone tacked on to the NEXT plan. That said, $265 after taxes is pretty good for 5 phones with subsidy. That's just $53/mo for each phone and factoring out $18.75 ($450/24) for subsidy, service comes out to just $34.25/line. Mobile Share service pricing for 10GB/5 lines is $175/mo or $35/line.

 

[AZhappyjack]

This is incorrect. You can still go through AT&T's NEXT program and keep your unlimited Data plan. I've already ran a trial using NEXT and AT&T did not remove my unlimited data plan, as seen in my screenshot here:

Image

Using NEXT with a Family Share plan, you end up paying double for the device. The NEXT plan adds the cost of the device to the ongoing cost of the plan, which has the cost of a device built in.

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Can I keep unlimited data with AT&T Next?

Yes, but you pay extra for it. Double dipping for the cost of the device - the NEXT charges plus the higher priced Family Share plan which has the cost of recouping the subsidy built in.

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Not quite an apples to apples comparison then since you've got the cost of an extra phone tacked on to the NEXT plan. That said, $265 after taxes is pretty good for 5 phones with subsidy. That's just $53/mo for each phone and factoring out $18.75 ($450/24) for subsidy, service comes out to just $34.25/line. NEXT service pricing for 10GB/5 lines is $175/mo or $35/line.

But the latter calculation ($175/mo; $35/line) does not include taxes and fees.

It’s more like $215/mo; $43/mo.

Also, where is the extra phone "tacked on"? We upgrade whenever there’s an available upgrade. We would do so regardless of FSP or MSP. (Not arguing, but honestly don’t see it.)

 

[bueller1]

Using NEXT with a Family Share plan, you end up paying double for the device. The NEXT plan adds the cost of the device to the ongoing cost of the plan, which has the cost of a device built in.

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Yes, but you pay extra for it. Double dipping for the cost of the device - the NEXT charges plus the higher priced Family Share plan which has the cost of recouping the subsidy built in.

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But the latter calculation ($175/mo; $35/line) does not include taxes and fees.

It’s more like $215/mo; $43/mo.

Also, where is the extra phone "tacked on"? We upgrade whenever there’s an available upgrade. We would do so regardless of FSP or MSP. (Not arguing, but honestly don’t see it.)

Is that any different from buying the phone unlocked when you were grandfathered in?