But even if you bought a iPhone full priced out of contract you would still pay the same $71 a month. The only difference is you could switch carriers without a termination fee.
Got a tip for us?
Let us know
Become a MacRumors Supporter for $50/year with no ads, ability to filter front page stories, and private forums.
If you cannot afford the upcoming iPhone and are using an older iPhone
- Thread starter Azariah80
- Start date
- Sort by reaction score
But even if you bought a iPhone full priced out of contract you would still pay the same $71 a month. The only difference is you could switch carriers without a termination fee.
So this asinine reasoning assumes that I want to get an iPhone (whether subsidized or not) and then promptly cancel my service so that I'm not able to use my iPhone. Because, if I'm paying $71 per month anyway for the ability to use my iPhone AS A PHONE, God forbid I'm under contract for the time I wish to use my phone AS A PHONE.
In that case, I think I get it.
The monthly fee they're referring to is the difference in cost between a prepaid and a postpaid plan.
Depending on your usage and location, that difference may be quite large or negligibly small. In any case, the 20% taxes on postpaid plans vs the ~0-6% tax on prepaid plans is also a factor.
For me, being the only person on a contract, I would have to pay about $65 a month before the 19.7% tax on cell phone contracts in my area for 450 minutes and 200mb data.
With prepaid AT&T, I am currently paying around $11 a month with no taxes for the 15 minutes of calling and 200mb of data I actually use. (when I am at home, I make all my calls/texts over wifi). If I were to use 450 minutes a month and 200mb of data, my bill would be about $50/month.
On top of that $11 a month, though, I had to foot the entire bill for a used iphone4 ($300).
While profit may not be the right word, given the fact that prepaid in the US is viewed so negatively, it makes sense to take full advantage of the contract you're paying for. If you're going to be in the contract anyways, you might as well go through as many phones as you can to "get your money's worth."
Depending on your usage and location, that difference may be quite large or negligibly small. In any case, the 20% taxes on postpaid plans vs the ~0-6% tax on prepaid plans is also a factor.
For me, being the only person on a contract, I would have to pay about $65 a month before the 19.7% tax on cell phone contracts in my area for 450 minutes and 200mb data.
With prepaid AT&T, I am currently paying around $11 a month with no taxes for the 15 minutes of calling and 200mb of data I actually use. (when I am at home, I make all my calls/texts over wifi). If I were to use 450 minutes a month and 200mb of data, my bill would be about $50/month.
On top of that $11 a month, though, I had to foot the entire bill for a used iphone4 ($300).
While profit may not be the right word, given the fact that prepaid in the US is viewed so negatively, it makes sense to take full advantage of the contract you're paying for. If you're going to be in the contract anyways, you might as well go through as many phones as you can to "get your money's worth."
So this asinine reasoning assumes that I want to get an iPhone (whether subsidized or not) and then promptly cancel my service so that I'm not able to use my iPhone. Because, if I'm paying $71 per month anyway for the ability to use my iPhone AS A PHONE, God forbid I'm under contract for the time I wish to use my phone AS A PHONE.
In that case, I think I get it.
Wait a second.. so what you guys are saying is that in the whole of United states, the minimum cost of 400 minutes and xxx GB data is 71 dollars? There is no network that does it cheaper on sim only?
I don't believe you for a second. thats more expensive then what we have here across the pond.
----------
hey tgcken
Thats very interesting. I assumed that you have the same thing as us here in the UK. There is a massive difference in plan pricing if you go sim only vs if you get a highend smartphone.
So lets take for example, whats the minimum you could get 500 minutes and 1gb data for? assuming you dont get a phone. Just a calling + data plan
The only two official iphone carriers are at&t and verizon. Both of which require you to have a data plan to use the phone on their postpaid accounts. For a single contract, the cheapest you're going to get is $40 (450 minutes) + $15 (250mb data), or 55$ per month.
On top of that 65%, you also have to pay $11 in taxes each month, bringing the total to about $66.
Sorry, $40 not 50$ for (450 minutes). 250mb, not 200mb. No texting plan is included.
Don't worry about the rest of the cranks trying to make this in to something it's not. It's not worth the time to point out all the assumptions and logic flaws they made. You provided good information and I'm glad it worked out for you.
I'm not quite sure what you're saying/asking here. However, I get unlimited 3G data, 450 "daytime" minutes, and (I think) 5,000 "night and weekend" minutes and 200 texts (I use TextFree and only use native texting for pictures/urgent things) for $71 total after all taxes and fees. It would be higher but I get a discount (I think 8-9%) through my job.
What I was originally saying was that with or without a contract, I'm paying $71 for these iPhone features. So - given that I pay ~$71 on contract or not on contract - how exactly do you figure that I'm paying an "extra" monthly fee/service/whatever by getting the subsidized price?
Damn... those are some ludicrous prices.
You can have 500 minutes, 500 txts and 1gb data here for about 20 bucks max depending on the network.
Seems like sim only is not big in the US.
Yet if you want to have cell service at all you are paying that 71 dollars a month wether you have the contract or not, so the price difference between the subsidized and unsubsidized phone all goes to you as you are paying the same per month regardless. That isn't the case in some countries, but in the US and Canada at least it is.
At&t, Verizon, T-mobile, Virgin, etc. all offer Prepaid (no contract) plans in the US, each of which are potentially much cheaper than postpaid depending on your usage as I mentioned above.
And yes, our pricing is awful here. I would love $20 a month for 1gb of data, texts, and minutes.
Be glad you don't live in the US cell phone plans here suck compared to the rest of the world.
Hey james
I find that really strange.
Over here in the UK, we get much cheaper plans if we dont get a phone with our plans.
So you might pay, for example, 20 bucks a month for 500 minutes and 1 gb data if you dont get a phone.
but if you want a phone, you pay 50 bucks a month for the exact same plan.
I mean, minutes and minutes and data is data right?
Let me give you an example. On O2,
no phone, 1gb data, 600 minutes, unlimited texts = 31 pounds a month for 12 months
free iphone, 1gb data, 900 minutes, unltd text = 46 pounds a month for 24 months
pay 140 pounds for the iphone, 1gb data, 600 minutes, unlimited texts = 31 pounds a month for 24 months
basically, the networks squeeze the price of the phone out of you one way or another. Seems like you guys dont get any reward for not taking a phone pout with a plan. really strange. LOL
And it gets worse if you actually want a text plan. AT&T has only ONE texting plan now, Unlimited for $20 a month (for the individual). They've eliminated all their lower cost plans as of last month, so unless you're grandfathered in or EVERYONE you know will have an iPhone on iOS 5 for iMessages, they'll get you that way too.
hey tgcken,
when you say prepaid, whats the contract term? month on month? or minimum x months?
Lets say you had to find the cheapest way of getting minimum 500 minutes a month and 1gb data for the next 12 months, what would be the best option?
----------
Damn,
wanna know how much I pay
600 minutes, 500 texts and 1gb data for 5 pounds ( 8 dollars) a month with t-mobile. LOL..they offered me that when I threatened to leave.
Wow, no wonder I couldn't find the 1,000 message plan a few days ago when I was thinking of temporarily upping them!
Cheapest option would be Virgin Mobile.
35$/mo for 300 minutes, unlimited text/data (practical limit 5.5gb)
45$/mo for 1200 minutes, unlimited text/data (practical limit 5.5gb)
I'm not sure you can fandangle an Iphone into one of their plans, though. I know they're not officially supported. They do have some decent android phones though.
http://www.virginmobileusa.com/cell-phone-plans/beyond-talk-plans.jsp?tab=tab2
I thought about virgin, but at&t prepaid with an iphone4 is much cheaper for my uses, as I don't call very much. Prepaid in the US is essentially pay as you go. When you stop paying, you stop going. You put money into the account, and that also adds time.
I bought a $100 prepaid card for at&t (you can usually find them for like $89), and added that to my account. It also adds a year of time, after which my phone is no longer active (even if I still add money on my account).