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I gave ST a serious consideration a few weeks ago but have decided to just get the next iPhone and renew my contract with AT&T. ...
You should remove the taxes when you present your calculation. They are typically assessed fairly equally, but specific to location.

A $199 subsidized handset should have the same taxes as a retail priced phone because that's what the sales tax is based on: full retail price.

Amusingly, the prepaid business seems to include many taxes. When I had an AT&T GoPhone Pay As You Go SIM, I never paid a dime in extra taxes. A $100 refill card gave me $100 of service. However, it was never really $100. You'd buy the discounted refill card from a retailer like CallingMart and pay $90 cash for $100 of GoPhone credit.

Today, I use Straight Talk's $45/month Unlimited Plan. Yes, I am assessed taxes on my monthly refill, but it's 94 cents, about 2 percent of the plan cost.

It's best to compare these plans ex-taxes. As far as I can tell, if you are buying a typical subsidized iPhone versus a retail iPhone directly from Apple, you need to be paying less that $65 per month for your total cost of ownership to approach that of the unsubsidized phone and Straight Talk's $45/mo. plan.

The math...

$199 subsidized handset + $36 activation/renewal fee + ($65/mo. x 24 mo.)
$649 retail handset + $15 Straight Talk SIM + ($45/mo. x 24 mo.)

Now if you are paying more than $65 a month to your telecom provider, well, you are probably getting reamed.

Do the math yourself. There are probably certain situations where the ST plan doesn't make sense.
 
I agree. I learned the hard way one year into my Sprint contract. Somebody told me to buy unlocked, but I had no idea at the time I could go with T-Mobile for $30/mo. non-contract. Even if I sold my 4S and paid the ETF and bought the new iPhone unlocked, it would still cost me more if I just finished my contract with Sprint.

----------



WOW! Sprints 450min plan is $79.99 unlimited plus I get 25% off of that.

Anyway, I agree that's a tremendous savings.

I'm hoping the T-Mobile $30 prepaid plan (100 minutes, unlimited SMS, and “unlimited 4G data”) is still available when their cell towers start supporting the iPhone frequencies. That would be a nearly perfect plan for me!
 
If you buy an iPhone subsidized, you pay tax on the subsidized price, not the full retail price.

For my iphone 3G, my receipt shows price of $399.00 - $200 = $199 + 7.00% tax = $199 + 13.93 = 212.93.

For my 2 year old iphone 4, I bought it at Radioshack for $149 + 9.30% tax = $149+13.86 = $186.86
 
And monthly service bills during the contract period? What were your taxes?

Believe me, I don't think the local government is going to let sales tax on a subsidized cellphone slip under the radar. They will collect on the full amount.
 
Taxes are $7.88. I could be wrong, but I think this is the same whether or not you have a subsidy?

Federal Universal Service Charge $1.55
Regulatory Cost Recovery Charge $0.43
State 911 $0.73
State Tax $5.17

Total $7.88


And monthly service bills during the contract period? What were your taxes?

Believe me, I don't think the local government is going to let sales tax on a subsidized cellphone slip under the radar. They will collect on the full amount.
 
If you buy an iPhone subsidized, you pay tax on the subsidized price, not the full retail price.

For my iphone 3G, my receipt shows price of $399.00 - $200 = $199 + 7.00% tax = $199 + 13.93 = 212.93.

For my 2 year old iphone 4, I bought it at Radioshack for $149 + 9.30% tax = $149+13.86 = $186.86

Some states (California I know is one) makes you pay the sales tax on the full retail price, even when buying subsidized.

----------

Hmm. I called an AT&T store today and asked if they sold the 4s unlocked and they said no.

Unfortunately you can't rely on the employees at either the AT&T or Apple Store for entirely accurate info. Last year prior to the 'factory unlocked' version being sold at the Apple Store, Apple employees would not state that the AT&T version when bought outright at full retail was unlocked, even though it was. In many cases, phone calls to the Apple store inquiring purchasing a model at full retail were often told 'you can't do that' or some other variation of that answer, yet that also clearly wasn't the case.

And technically, the AT&T store don't sell an advertised 'unlocked' model, only the AT&T model (which will be unlocked after restoring through iTunes, if you pay full retail :rolleyes:). Call again and ask if they sell it at full retail price with no contract and I bet you get a different answer.
 
Taxes are $7.88. I could be wrong, but I think this is the same whether or not you have a subsidy?

Federal Universal Service Charge $1.55
Regulatory Cost Recovery Charge $0.43
State 911 $0.73
State Tax $5.17

Total $7.88
The only tax I paid when I bought my unsubsidized iPhone (directly from Apple) was the CA Sales Tax, probably 8.25% for my county. I pay zero sales tax on my monthly service.

The 94 cents I pay on my $45 Straight Talk plan are apparently FCC access taxes.

Again, basic cellular cost of ownership calculations here should be presented ex-taxes. Tax liability varies depending on location. As a Californian, I don't care what someone from Wisconsin pays in taxes. It's irrelevant.

Interesting, you are paying $5.17 per month in state taxes. A 7% sales tax for a $350 smartphone subsidy should be $1.02 per month (over 24 months).

It looks like post-paid plans are ex-tax means a $60 prepaid plan and a $60 postpaid plan aren't really the same price.

Admittedly, I'm no expert on cellular post-paid plans; I've never had one (by choice -- my credit is sterling). I'd never shell out that much money to the phone company. Heck, I'm annoyed that I'm paying $45.94 per month right now since my old monthly cellular usage was more like $11-13 per month (before AT&T got rid of their data packages for GoPhone Pay As You Go service).
 
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Your $45 includes a lot of taxes which you don't really feel. Prepaid would be extremely hard to sell if it didn't include all taxes (except state taxes on the phone cards), because your $45 card would cost different in each state. If you compare prepaid vs postpaid plans not including taxes, prepaid is actually much cheaper.



The only tax I paid when I bought my unsubsidized iPhone (directly from Apple) was the CA Sales Tax, probably 8.25% for my county. I pay zero sales tax on my monthly service.

The 94 cents I pay on my $45 Straight Talk plan are apparently FCC access taxes.

Again, basic cellular cost of ownership calculations here should be presented ex-taxes. Tax liability varies depending on location. As a Californian, I don't care what someone from Wisconsin pays in taxes. It's irrelevant.

Interesting, you are paying $5.17 per month in state taxes. A 7% sales tax for a $350 smartphone subsidy should be $1.02 per month (over 24 months).

It looks like post-paid plans are ex-tax means a $60 prepaid plan and a $60 postpaid plan aren't really the same price.

Admittedly, I'm no expert on cellular post-paid plans; I've never had one (by choice -- my credit is sterling). I'd never shell out that much money to the phone company. Heck, I'm annoyed that I'm paying $45.94 per month right now since my old monthly cellular usage was more like $11-13 per month (before AT&T got rid of their data packages for GoPhone Pay As You Go service).
 
I disagree. The savings are minimal. Plus OP, ST runs on AT&T's network. So if your big gripe is the dropped calls you get with AT&T, nothing is going to change with ST with respect to service.

I find it kind of odd that you disagree with me when in another thread you are excited about switching to ST.

I suppose you really like 56K like network speeds and awful call quality if you are recommending Virgin Mobile to the OP.
 
I find it kind of odd that you disagree with me when in another thread you are excited about switching to ST.

I suppose you really like 56K like network speeds and awful call quality if you are recommending Virgin Mobile to the OP.

My thoughts on ST changed once I did the math. It really is only worth the savings if you hold onto your current iPhone. Purchasing a new unlocked iPhone this fall and using it on ST isn't really worth it.

Virgin Mobile sucks. You are correct. I've done extensive research this past weekend and its cellular speeds are terrible plus you have an almost worthless VM iPhone on your hands when you are ready to move forward in the future.

Just for the record, I do think ST is awesome. But not under the terms the OP was stating. And more importantly, I completely disproved his ridiculous boasts about savings.
 
My thoughts on ST changed once I did the math. It really is only worth the savings if you hold onto your current iPhone. Purchasing a new unlocked iPhone this fall and using it on ST isn't really worth it.

Virgin Mobile sucks. You are correct. I've done extensive research this past weekend and its cellular speeds are terrible plus you have an almost worthless VM iPhone on your hands when you are ready to move forward in the future.

Just for the record, I do think ST is awesome. But not under the terms the OP was stating. And more importantly, I completely disproved his ridiculous boasts about savings.

No you just compared what you thought I would pay on ST to what you pay on AT&T with your grandfathered plan, that's not unlimited, and has lower state surcharges. I don't care that YOU wouldn't save as much. I care about what I save, stubborn weirdo. We have different plans, different priorities, live in different states, and mine apparently had a much better public school system.
 
Right, I'm hoping they do on one hand but on the other if I got the unlocked GSM enabled iPhone instead and used it on straight talk it would be more versatile (as in I could crawl back to AT&t if I move somewhere with 4G LTE) whereas how I understand it, CDMA is completely locked to the carrier.

Now I gotta call AT&T for an unlock on my iPhone 4 and figure out how to switch my number over to ST. If I were to cancel my contract with AT&T at the end of the month can I still retain my # when i setup ST on my iPhone 5 22 days later?

Sorry to ask what probably everyone else on this thread knows, but hey: what is GSM, and what is CDMA?
 
No you just compared what you thought I would pay on ST to what you pay on AT&T with your grandfathered plan, that's not unlimited, and has lower state surcharges. I don't care that YOU wouldn't save as much. I care about what I save, stubborn weirdo. We have different plans, different priorities, live in different states, and mine apparently had a much better public school system.

You mean the better public school system that thought Massachusettes was the live free or die state? You're a joke.

Honestly Lick my words were directed at nburwell. I truly could not care any less about your situation at this point. Throughout this thread I have clearly laid out your savings compared to staying with AT&T and compared with me. I only brought myself into the equation because YOU insisted that going with ST was going to be monumental savings compared to ME at AT&T. Again, I could care less about what you plan on doing at this point. You seem dead set on going to ST and again........I. Don't. Care. Like I've said repeatedly at this point, you will indeed be saving money by going with ST but it's not nearly as much as you make it out to be. I have no desire to engage in a back and forth moving forward but if you really want to continue this and throw words at me I will absolutely respond. The choice is yours.
 
Sorry to ask what probably everyone else on this thread knows, but hey: what is GSM, and what is CDMA?

I'll respond with my laymens understanding until someone more knowledgeable can more fully answer. Essentially they are different standards by which phone company's operate. In the US CDMA is slightly more popular then GSM but worldwide GSM is king. GSM uses sim cards whereas CDMA phones do not. When you buy a CDMA phone it's forever locked to that carrier. GSM on the other hand is mostly only limited by your contract , once that is up or if you buy Unlocked you can use it Internationally and on other GSM providers in the US.

Main 4 US Carriers are. Verizon(CDMA), AT&T(GSM). Sprint(CDMA), & T-Mobile(GSM)

I truly could not care any less about your situation at this point. Throughout this thread I have clearly laid out your savings compared to staying with AT&T and compared with me.

You incorrectly assumed my monthly bill and twisted the math leaving out key things to suit your opinion. If you don't care about what I pay then why are you posting in my thread? Before I try to ignore you again let me throw some more math your way. Feel free to once again find an imagined fault with it.

Lets compare what an unlimited plan on AT&T would cost me with my current iPhone 4 compared to an unlimited plan on ST.

AT&T

DataPro 3GB - $30
Messaging Unlimited - $20
Unlimited Minutes - $69.99
-------------------------------
$119.99
NY Cell Tax (21.71%) - $26.05
-------------------------------
$146.04 per month
x24 Months
-------------------------------
$3504.96 For 2 years of Unlimited Talk + Text + 3GB data

VS

Straight Talk
3 Months of Unlimited- $125.99
+4% Sales Tax - $5.04
-------------------------------
$131.03 Every 3 months
x8
-------------------------------
$1048.24 for 2 Years of Unlimited talk + Text + 2.5GB data

For a grand total saving of...$2,456.72

I could hire a private tutor to teach me about the history of Massachusetts for an hour a day every day for 4 months, I could then throw 25 rolls of nickels at your car and still have spent less then I would have with AT&T.
 
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You incorrectly assumed my monthly bill and twisted the math leaving out key things to suit your opinion. If you don't care about what I pay then why are you posting in my thread? Before I try to ignore you let me throw some more math your way so you can once again find an imagined fault with it.

Lets compare what an unlimited plan on AT&T would cost me with my current iPhone 4 compared to an unlimited plan on ST.


DataPro 3GB - $30
Messaging Unlimited - $20
Unlimited Minutes - $69.99
-------------------------------
119.99
NY Cell Tax (21.71%) - 26.05
-------------------------------
146.04 per month
x24 Months
-------------------------------
$3504.96 For 2 years of Unlimited Talk + Text + 3GB data

VS

3 Months on ST Unlimited$125.99
+4% Sales Tax - $5.04
-------------------------------
131.03 Every 3 months
x8
-------------------------------
1048.24 for 2 Years of Unlimited talk + Text + 2.5GB data

For a grand total saving of...$2,456.72

What is wrong with you Lick? I'm serious. If anyone twists numbers to make their case look stronger, it's you. You ALREADY stated you have a 1000 text message plan, which is $10. I have no idea why you currently have such a lame data plan but that's your pergoative. You could have easily carried an unlimted data plan when it was offered previously OR transfered over to what I have now which is $25 for 2 GB. You can instead opt for $30 for 3 GB plan which is currently offered.

Please, for the love of God, explain to me why you are using the unlimited text and extremely expensive data plan for your example. Do you need more than 1000 texts a month? Do you? Well if you don't then don't throw that $20 a month figure at me. And do you seriously need unlimited minutes? Or are you using such a figure to 1) show me the highest AT&T bill to prove your point of savings 2) compare unlimited AT&T minutes to unlimited ST minutes.

Let's take a more realistic approach to what you are truly facing instead of this utterly ridiculous example.

$40 (450 minutes, unlimited nights and weekends.)
$30 (3 GB)
$10 (1000 texts, HELLO YOU ALREADY HAVE THIS PLAN.)

Let's use your cell tax figure.

$80 + $17.36 = $97.36 a month with AT&T moving forward.

For 24 months service that's $2,336.64

With ST.....

$131 x 8 = $1,048

$1,288.64 over 2 years of savings. A much more realistic number than you are proposing. And that's signficant savings, but here's the thing....

I ALWAYS SAID YOU'D BE SAVING GOOD MONEY IF YOU KEPT YOUR IPHONE.

So really this is absolutely irrelevant. From the start you have insisted on bringing an unlocked iPhone 5 to the table. And that's where your savings take a serious nose dive.

With ST....

$1,048 + $676 (Unlocked iPhone 5 + 5% NY sales tax) = $1,724.

So what we are actually looking at here is $2,336.64 - $1,724 = $612.64 over 2 years, or $306.32 a year.

Your numbers are utterly ridiculous. I love how in your last feeble attempt to prove your point you don't even factor in the cost of an unlocked new iPhone.

Dude, seriously, I don't care anymore. You are dead wrong here and your numbers are laughable. You will save money if you keep your iPhone 4 with ST. You will not save that much if you bring an unlocked iPhone to the equation with ST. I keep saying this over and over again and you don't care. We are going in circles. I'll keep doing the math and proving how wrong you are at each turn if you really want, but you are dead wrong here and you look ridiculous with these inflated numbers.
 
What is wrong with you Lick? I'm serious. If anyone twists numbers to make their case look stronger, it's you. You ALREADY stated you have a 1000 text message plan, which is $10. I have no idea why you currently have such a lame data plan but that's your pergoative. You could have easily carried an unlimted data plan when it was offered previously OR transfered over to what I have now which is $25 for 2 GB. You can instead opt for $30 for 3 GB plan which is currently offered.

Please, for the love of God, explain to me why you are using the unlimited text and extremely expensive data plan for your example. Do you need more than 1000 texts a month? Do you? Well if you don't then don't throw that $20 a month figure at me. And do you seriously need unlimited minutes? Or are you using such a figure to 1) show me the highest AT&T bill to prove your point of savings 2) compare unlimited AT&T minutes to unlimited ST minutes.

Let's take a more realistic approach to what you are truly facing instead of this utterly ridiculous example.

$40 (450 minutes, unlimited nights and weekends.)
$30 (3 GB)
$10 (1000 texts, HELLO YOU ALREADY HAVE THIS PLAN.)

Let's use your cell tax figure.

$80 + $17.36 = $97.36 a month with AT&T moving forward.

For 24 months service that's $2,336.64

With ST.....

$131 x 8 = $1,048

$1,288.64 over 2 years of savings. A much more realistic number than you are proposing. And that's signficant savings, but here's the thing....

I ALWAYS SAID YOU'D BE SAVING GOOD MONEY IF YOU KEPT YOUR IPHONE.

So really this is absolutely irrelevant. From the start you have insisted on bringing an unlocked iPhone 5 to the table. And that's where your savings take a serious nose dive.

With ST....

$1,048 + $676 (Unlocked iPhone 5 + 5% NY sales tax) = $1,724.

So what we are actually looking at here is $2,336.64 - $1,724 = $612.64 over 2 years, or $306.32 a year.

Your numbers are utterly ridiculous. I love how in your last feeble attempt to prove your point you don't even factor in the cost of an unlocked new iPhone.

Dude, seriously, I don't care anymore. You are dead wrong here and your numbers are laughable. You will save money if you keep your iPhone 4 with ST. You will not save that much if you bring an unlocked iPhone to the equation with ST. I keep saying this over and over again and you don't care. We are going in circles. I'll keep doing the math and proving how wrong you are at each turn if you really want, but you are dead wrong here and you look ridiculous with these inflated numbers.

You didn't add the cost of a subsidized iphone 5 on AT&T.
 
$2,336.64 + $208 = $2,544.64 - $1,724 = $820.64 over 2 years or $410.32 a year.

That is correct, now if I could Direct you to your first post...
I gave ST a serious consideration a few weeks ago but have decided to just get the next iPhone and renew my contract with AT&T.

I did the math and honestly you don't really save that much money with ST unless you keep your iPhone 4 and simply use that with ST.

My guess is that if you join ST you'll be getting the $45 a month plan because the lowest one has some pretty pathetic amount of data. So do the math.

24 months x $50 (your monthly bill will most likely be roughly $50 when you factor in taxes) + an unlocked 2012 iPhone $650 (that's the price for the lowest model unlocked every year, and I wont' include taxes). So...50 x 24 + 650 = $1,850.

Now let's say you get the same phone and renew your contract with AT&T. Let's also assume your current monthly bill is $80 total. If your current bill is much more, please tell us, otherwise this is a pretty common total if you don't have a work discount, etc. So...24 x 80 + 200 + 36 (upgrade fee) = $2,156.

$2,156 - $1,850 = $306. That's a savings of $153 a year. Barely anything and certainly not worth switching over to ST IMO. (Plus you lose LTE.)

And my first response...

Well I'm in NY and we have some of the highest taxes / random bs charges of any state. So I end up paying $80 after taxes for the lowest Minute and Data plan. If I want decent 2GB data it is $100 a month. Buying prepaid you avoid the bulk of these taxes. Plus I'll get the same ****** 3G service either way because AT&T doesn't have 4G near me anyhow. Not to mention I don't have to worry about going over my data cap when I drunkenly put on a 2 hour video podcast when I'm not on Wifi. Most importantly I have the freedom to decide not to pay one month if I'm feeling anti-social or feel like using a Google or skype # over wifi like a dirty hippy and can sell it off and upgrade / downgrade at will.

So for me I estimate it factors out more like this.

$90 x 24 = 2160 + 236 = 2396

$46 x 24 = 1104 + 650 - 40 ($130 3 month bundles) = 1715

So $681 cheaper, No Contract, No overage Charges, Same Spotty 3G Coverage, More Data, Minutes, messaging, and the smug satisfaction of no longer funding the price gouging of the Major 3 networks.

And Honestly I was set on Virgin before I knew what I know now. Namely that CDMA is completely locked to a carrier and despite saving another $360 over 2 years with Virgin vs. Straight Talk your on a smaller network and the resell value of that phone will likely be far lousier then an Unlocked GSM iPhone. Still tempting though, if they surprise us and include iPhone 5 on Virgin or Cricket I might go that route instead.

Now tell me how I'm wrong again?
 
That is correct, now if I could Direct you to your first post...


And my first response...



Now tell me how I'm wrong again?

Yes Lick, my math was wrong at the very start. And there are numerous examples through out this thread where you were wrong too. We were not able to accurately get the math down until we figure more things into the equation down the road. You have proven nothing here. And again, in your last detailed attempt, you have to jump to ridiculous conclusions like expensive text and data plans.

Where were you wrong? Well, you seem to have short term dementia as I just showed you in detail how wrong you just were with my last retort. As if THAT WASN'T ENOUGH I have this fun quote to hold on to.....

"I'm just a guy who read the forums, did some math, and realized I could get the same service on an unlimited plan with no contract and save enough money at the end of 2 years to buy a new macbook air, a couple of kegs, and still be paying less then I did on AT&T."


If you can direct me to where you can purchase a brand new MacBook Air and a couple kegs for $820.64, then I will concede that you were right all along.

Lick, it's very simple. Read these words loud and clear. You are going to save significant money if you use your iPhone 4 with ST. You are going to save good but not nearly as much as you boasted before if you bring an unlocked iPhone 5 to the table. My numbers back this up. Can we please ***** drop this now.
 
Jackie-Chan-WTF.jpgx
 
I gave ST a serious consideration a few weeks ago but have decided to just get the next iPhone and renew my contract with AT&T.

I did the math and honestly you don't really save that much money with ST unless you keep your iPhone 4 and simply use that with ST.

My guess is that if you join ST you'll be getting the $45 a month plan because the lowest one has some pretty pathetic amount of data. So do the math.

24 months x $50 (your monthly bill will most likely be roughly $50 when you factor in taxes) + an unlocked 2012 iPhone $650 (that's the price for the lowest model unlocked every year, and I wont' include taxes). So...50 x 24 + 650 = $1,850.

Now let's say you get the same phone and renew your contract with AT&T. Let's also assume your current monthly bill is $80 total. If your current bill is much more, please tell us, otherwise this is a pretty common total if you don't have a work discount, etc. So...24 x 80 + 200 + 36 (upgrade fee) = $2,156.

$2,156 - $1,850 = $306. That's a savings of $153 a year. Barely anything and certainly not worth switching over to ST IMO. (Plus you lose LTE.)
You throw out situations after the fact. Now you are going to Walmart to purchase minutes? And why does it matter where you DON'T pay sales tax when you live in NY and you clearly do? Dude you are so baffling. And where are you coming up with ST being $126 for 3 months instead of $130? And even if that's true, who cares. A savings of $4 dollars. Big deal.

You still haven't been clear at all about your current plan. You state your current AT&T plan is 1000 text messages for $10, which I also have, but then you state you aren't grandfathered into anything. Do you even realized said text plan is not currently offered by AT&T which means you would be grandfathered into it if you get a new iPhone? I also find it funny that you completely ignored my correct counter in that when you upgrade your iPhone you can indeed keep your data and text plans that are no longer offered.

You don't sound like an ST rep but you also can't have a clear counter with me. You bring up facts after the fact and I honestly think you are not being honest in this discussion. I really don't care in that you can join ST and do whatever the hell you want. But you also can't have a clear conversation regarding this. The ST plan isn't truly unlimited by the way. They throttle your data if you go past 2.5 GB's per month or a set amount of data per day. I've read this on multiple sites. Bottom line, you will save if you join ST, but not nearly as much as you are making it out to be.

I'll do some final math and hopefully end this here. I'll leave out NY sales tax in the equation in both instances. I'm also going to propose an AT&T plan that is clearly currently offered. I'm also going by the fact that you said previously that you have a 1000 text/$10 a month plan.

If you have 450 minutes, 3 GB of data, and 1000 texts, then your monthly bill is....

$40 (minutes) + $30 (data) + $10 (texts) = $80/month.

This does not include NY sales tax and surcharges every month.

If you were to get the new iPhone 16 GB model at a subsidized price then your payment over 2 years would be......$80 x 24 + $200 + $36 (activation fee) = $2,156.

If you go with Straight Talk, again, taxes and surcharges withstanding....

$1,080 ($45/month, even if you do bundles you won't be saving much, x 24) + $650 (16 GB non-contract iPhone) + $15 (SIM card) = $1,745.

$2,156 - $1,745 = $411 over a 2 year period and $205.50 a year.


I don't care how you try to spin this, there is no way you are really going to be saving substantially more than that. I have no idea how you proclaim the savings that you do. The advantage to ST is no contract meaning you can drop and pick up service as desired. And if texting is super important to you and you need to use a cellular network, then I give ST the nod. But otherwise, you are full of BS with your bold proclamations. Do whatever you want man, but at least be honest with the numbers.

$2,336.64 + $208 = $2,544.64 - $1,724 = $820.64 over 2 years or $410.32 a year.

Yeah man you were right all along!
 
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