Not eligible for an AT&T handset upgrade? Here's how to avoid being overcharged

[reub]

First - Some background,

This is tentative, but reports coming from AT&T (See their forums) are that existing customers who don't have iPhones and aren't eligible for device upgrades, will not be able to purchase the new iPhone for the advertised price. Rather, we will have to pay some unsubsidized higher price along with the higher data plan rate. That stinks. My razr broke down in april and I renewed with a cheapy, waiting for the new iPhone. Now it looks like I'll have to pay even more cash for one.

While it might be more cost effective to break your contract (depending on the non-subsidized price), a better way is to find someone who is upgrading their iPhone and ask them nicely to borrow it for a little while.

Step 1) Wait for your friend to upgrade
Step 2) Activate using their old phone
Step 3) Buy a new iPhone - as you are an existing iPhone user, you qualify to "reset" your contract and pay the same price as everyone else.
Step 4) Give your friend their old iPhone back (it still makes a great iPod or backup).
Step 5) Buy your friend lunch.
Step 6) Contact your congressperson to complain about the fairness of these cell phone contracts.

 

[WannaApple?]

This just pisses me off that AT&T is trying to be greedy. They are getting plenty enough money off of plans and new customers, and it should be Apple to set the price, not AT&T! I'm not getting too upset yet until we hear the official word from AT&T, but if I have to wind up paying a lot more for a phone, AT&T will hear a peice of my mind! Steve said he was pricing the phones so EVERYONE could afford one, not just new AT&T customers or those eligible for an upgrade!

 

[FarSeide]

First - Some background,

This is tentative, but reports coming from AT&T (See their forums) are that existing customers who don't have iPhones and aren't eligible for device upgrades, will not be able to purchase the new iPhone for the advertised price. Rather, we will have to pay some unsubsidized higher price along with the higher data plan rate. That stinks. My razr broke down in april and I renewed with a cheapy, waiting for the new iPhone. Now it looks like I'll have to pay even more cash for one.

While it might be more cost effective to break your contract (depending on the non-subsidized price), a better way is to find someone who is upgrading their iPhone and ask them nicely to borrow it for a little while.

Step 1) Wait for your friend to upgrade
Step 2) Activate using their old phone
Step 3) Buy a new iPhone - as you are an existing iPhone user, you qualify to "reset" your contract and pay the same price as everyone else.
Step 4) Give your friend their old iPhone back (it still makes a great iPod or backup).
Step 5) Buy your friend lunch.
Step 6) Contact your congressperson to complain about the fairness of these cell phone contracts.

this is exactly what I recommended few days ago in a different thread...

well put OP !!!

I will be using my wife's iPhone to purchase the new one... then I will upgrade her phone as well..

 

[WannaApple?]

Unfortunately I know no one with a current iphone. Even if I did, it would be my luck that AT&T would catch on and say well since you only activated a day or 2 before the new one comes out, we arent going to offer you the upgrade! Still waiting on an official response from AT&T. I sent them an email, but have yet to hear back.

 

[iphone529]

This is all speculative. AT&T has not said that they will be charging more for anyone that is not "upgrade eligible".

 

[reub]

this is exactly what I recommended few days ago in a different thread...

well put OP !!!

Thanks. Sorry I didn't see your post.

Unfortunately I know no one with a current iphone. Even if I did, it would be my luck that AT&T would catch on and say well since you only activated a day or 2 before the new one comes out, we arent going to offer you the upgrade! Still waiting on an official response from AT&T. I sent them an email, but have yet to hear back.

It's possible that they start hearing that people plan to do this and decide to change their conditions to prevent it. It's also possible that they cave to a lot of unhappy customers. Let's keep our fingers crossed that fear beats out greed.

This is all speculative. AT&T has not said that they will be charging more for anyone that is not "upgrade eligible".

You're right, it is speculative. But... There is a widely circulating leaked memo to AT&T managers (see link below) stating: "AT&T has not determined the price of the 3G device for non-qualified upgrades."

This is what is upsetting a lot of us. I'd guess that if they do this, the price will be no more than the early termination fee of $175. If it's more, there's no reason not to break your contract and buy an iPhone at the standard cost. That would put the price points at $374 and $474.

http://www.boygeniusreport.com/2008/06/09/iphone-3g-the-details-you-never-wanted-to-know/

 

[FarSeide]

Thanks. Sorry I didn't see your post.

no apology needed. Glad someone made it into a new thread..

 

[MBHockey]

Wow AT&T is garbage for doing that. If anyone in the NYC suburb area needs someone to do this for them when the iPhone 3G is released, PM me.

I can't wait for the day that Jobs is up on stage and happily proclaims that we're no longer tied to an exclusive carrier.

 

[saDeRmac]

It's possible that they start hearing that people plan to do this and decide to change their conditions to prevent it. It's also possible that they cave to a lot of unhappy customers. Let's keep our fingers crossed that fear beats out greed. [1]



You're right, it is speculative. But... There is a widely circulating leaked memo to AT&T managers (see link below) stating: "AT&T has not determined the price of the 3G device for non-qualified upgrades."[2]

This is what is upsetting a lot of us. I'd guess that if they do this, the price will be no more than the early termination fee of $175. If it's more, there's no reason not to break your contract and buy an iPhone at the standard cost. That would put the price points at $374 and $474.[3]

http://www.boygeniusreport.com/2008/06/09/iphone-3g-the-details-you-never-wanted-to-know/

[1]Currently that is all up in the air.
[2]Due to the iPhone 3G being a subsidized phone like the rest of AT&T's phones: there will probably be flag on the account... and from how I'm reading the document... I think they have thought if that situation already. The reason why the 2G iPhone allows you to upgrade period (to any other phone or another iPhone) during the 2yr agreement is because of the 2G's non-subsidization.
[3]The ETF is only if you are canceling the line out right which in being so cancels that number and does not allow you to resign for I think 3 mths...

 

[housemusic101]

I was with AT&T with first iphone. Iphone sucked in my apartment so I went there to switch phone to see if something else got better reception. They said I would have to start new two year since I wasn't eligible for upgrade. I bought new phone at full retail then returned next day. Since I had to start new 2 year I had that 30 day window to cancel with no ETF. Salesman at AT&T pissed me off so I canceled with no ETF because they had to give me new 2 year.

So that could be a way to cancel with no ETF. Renew with new phone then quit. Buy new iphone, start new 2 year, quit, become new customer next day at cheaper price. Might get a new number though.

 

[ALittleDrive]

Stevie Jobs will look like a liar if AT&T decides to charge even more for the phone! A distinct proclamation of two rates for the iphone, without speaking of any stipulations will be horrible. AT&T's representatives responses to my 3G questions today were horrifying, troubling, and painful.

 

[saDeRmac]

Wow AT&T is garbage for doing that. If anyone in the NYC suburb area needs someone to do this for them when the iPhone 3G is released, PM me.

I can't wait for the day that Jobs is up on stage and happily proclaims that we're no longer tied to an exclusive carrier.

I'm not saying that AT&T isn't misguided and that having a multi-carrier iPhone wouldn't be beneficial, but #1: Apple wants the phone to be GSM, #2 AT&T is the largest GSM network with an active high speed 3G service (T-Mobile's just launched and quite frankly sucks). #3 Apple and AT&T decided that it was the best way to combat non activations and overseas selling. Its still an issue because of the fact that 70 countries isn't all of them and in the first few mths 22 of those 70 will be the ones selling them. The reason for the upgrade restriction all comes back to the subsidizing. Even though iPhone was the only phone that only had a non-subsidized price that still doesn't change the fact that it is now being subsidized and AT&T needs to recoup that money. Its all bizness... not saying I agree... I just work for the damn company lol

 

[liquidlink]

Another option for you to do

1. Start a new line of service with a iPhone 3G
2. Get smallest plan for 1 month
3. Cancel service after 40 days
4. Pay $175 ETF
5. Use your new iPhone 3G on your regular account

Cost - $199 for new iPhone + $175 ETF = $374.00 - Cheaper then trying to get one unlocked

 

[saDeRmac]

Stevie Jobs will look like a liar if AT&T decides to charge even more for the phone! A distinct proclamation of two rates for the iphone, without speaking of any stipulations will be horrible. AT&T's representatives responses to my 3G questions today were horrifying, troubling, and painful.

What are your questions... I will try to answer them to the best of my knowledge and even update them if you want... I work for AT&T and I don't want anyone misunderstanding our intentions (even though personally i might not agree with them myself). Personally I'm hoping that they fix the "Upgrade Eligible" stipulation.

 

[cjandnw]

What are your questions... I will try to answer them to the best of my knowledge and even update them if you want... I work for AT&T and I don't want anyone misunderstanding our intentions (even though personally i might not agree with them myself). Personally I'm hoping that they fix the "Upgrade Eligible" stipulation.

I had an iPhone since day 1. I signed a 2 year contract through itunes. I sold my iPhone last week and have been using a spare razr v3xx 3g since. I plan to but a iPhone3g July 11th.
Can I just upgrade with the subsidized price?
Does AT&T know i am now using a RAZR?
Does it matter if i am still paying the origional iPhone contract?

 

[seenett]

[2]Due to the iPhone 3G being a subsidized phone like the rest of AT&T's phones: there will probably be flag on the account... and from how I'm reading the document... I think they have thought if that situation already. The reason why the 2G iPhone allows you to upgrade period (to any other phone or another iPhone) during the 2yr agreement is because of the 2G's non-subsidization.

I wonder how many 2G iPhone users were existing AT&T customers who were not eligible for a traditional upgrade when they got an iPhone? They bought their 2G iPhones un-subsidized AND it effective made them instantly eligible for a 3G iPhone.

Example: Joe and Bob both started new 2 year contracts with AT&T in February 2008 - say they both got subsidized RAZRs. The standard contract makes them eligible for an equipment upgrade (new subsidized phone) in Aug 2009 (18 months later). Joe buys an iPhone in March 2008, which extends his contract one month. Bob keeps his existing phone and plan. In July 2008, Joe and Steve want new 3G iPhones. Joe is eligible, but Bob isn't - Bob has to wait until Aug 2009.

If AT&T doesn't fix this, then the OP's point is perfectly valid and worth exploring.

 

[saDeRmac]

I had an iPhone since day 1. I signed a 2 year contract through itunes. I sold my iPhone last week and have been using a spare razr v3xx 3g since. I plan to but a iPhone3g July 11th.
[1]Can I just upgrade with the subsidized price?
[2]Does AT&T know i am now using a RAZR?
[3]Does it matter if i am still paying the origional iPhone contract?

Please don't hold me to my word on any of the following because it is subject to change and some of it is speculation.
[1]Yes. In our systems if you are still on an iPhone plan that is sufficient enough evidence for a manager to override any problems that may occur.
[2]Yes. As soon as you put your SIM card into the RAZR it changed in our system as having that phone. Although you are using that phone the plan hasn't changed you still have the iPhone data plan attached to your account.
[3]No, it does not matter that you are still on the old iPhone contract b/c essentially it is your phone and you only signed an agreement to keep the plan not the phone. The reason why someone would not be able to upgrade is because they received the subsidized price for a phone and it has not been 18 mths. The 2G iPhone was in no way subsidized. The iPhone 3G is.
I hope that answered your questions.

 

[kdarling]

This is tentative, but reports coming from AT&T (See their forums) are that existing customers who don't have iPhones and aren't eligible for device upgrades, will not be able to purchase the new iPhone for the advertised price.

This is the way it has always worked when customers of any carrier wish to upgrade.

If you haven't had a phone long enough to pay off its subsidy, then of course you don't get a new one with a new subsidy.

What am I missing here?

 

[saDeRmac]

I wonder how many 2G iPhone users were existing AT&T customers who were not eligible for a traditional upgrade when they got an iPhone? They bought their 2G iPhones un-subsidized AND it effective made them instantly eligible for a 3G iPhone.

Example: Joe and Bob both start new 2 year contracts with AT&T in February 2008. The standard contract makes them eligible for an equipment upgrade (new subsidized phone) in Aug 2009 (18 months later). Joe buys an iPhone in March 2008, which extends his contract one month. Bob keeps his existing phone and plan. In July 2008, Joe and Steve want new 3G iPhones. Joe is eligible, but Bob isn't - Bob has to wait until Aug 2009.

If AT&T doesn't fix this, then the OP's point is perfectly valid and worth exploring.

YUP that's why I don't agree with the current situation... I think that its going to be a bitch to wean it out of my manager tomorrow, but I think I might be able to get some more info regarding the situation. But then again he knows as much as I do on the positive info side. He has been with the company longer than I have so he might have a better guess of what AT&T is going to do.

 

[seenett]

What am I missing here?

You are missing my post above (#16)

 

[cjandnw]

Please don't hold me to my word on any of the following because it is subject to change and some of it is speculation.
[1]Yes. In our systems if you are still on an iPhone plan that is sufficient enough evidence for a manager to override any problems that may occur.
[2]Yes. As soon as you put your SIM card into the RAZR it changed in our system as having that phone. Although you are using that phone the plan hasn't changed you still have the iPhone data plan attached to your account.
[3]No, it does not matter that you are still on the old iPhone contract b/c essentially it is your phone and you only signed an agreement to keep the plan not the phone. The reason why someone would not be able to upgrade is because they received the subsidized price for a phone and it has not been 18 mths. The 2G iPhone was in no way subsidized. The iPhone 3G is.
I hope that answered your questions.

You answered it. Thank you.
That s the way I felt / hoped it would work. That the plan overode the phone in the system. AT&T is still getting the full money and I'm actually using MUCH less data with this silly RAZR!
Thanks

 

[RasaFrasa]

I wonder how many 2G iPhone users were existing AT&T customers who were not eligible for a traditional upgrade when they got an iPhone? They bought their 2G iPhones un-subsidized AND it effective made them instantly eligible for a 3G iPhone.

If AT&T doesn't fix this, then the OP's point is perfectly valid and worth exploring.

I am actually one of those in this situation. I bought an 8525 in May 2007 and an iPhone in July 2008. According to the AT&T upgrade chart, I'm not eligible for a new phone until January 2009. So where does that place me in the grand scheme of things?

 

[saDeRmac]

You answered it. Thank you.
That s the way I felt / hoped it would work. That the plan overode the phone in the system. AT&T is still getting the full money and I'm actually using MUCH less data with this silly RAZR!
Thanks

No prob, any more questions either post here or PM me.

I am actually one of those in this situation. I bought an 8525 in May 2007 and an iPhone in July 2008. According to the AT&T upgrade chart, I'm not eligible for a new phone until January 2009. So where does that place me in the grand scheme of things?

Honestly, I can't say... I'm hoping that we will be able to help people like you out. One of my family members was just asking about that a little while ago. The memo is really vague right now I'm surprised if most of the things that are said now will stay the same...

 

[jediistar]

I have an eligible line to upgrade on my account, I have hopes that I will be able to use that eligible upgrade and convert it to my current line of service.

 

[benmrii]

You're right, it is speculative. But... There is a widely circulating leaked memo to AT&T managers (see link below) stating: "AT&T has not determined the price of the 3G device for non-qualified upgrades."

This is what is upsetting a lot of us. I'd guess that if they do this, the price will be no more than the early termination fee of $175. If it's more, there's no reason not to break your contract and buy an iPhone at the standard cost. That would put the price points at $374 and $474.

http://www.boygeniusreport.com/2008/06/09/iphone-3g-the-details-you-never-wanted-to-know/

Wait... people actually believe that email to genuine? HAH!

A supposed corporate email to managers uses terms like "ill-na-na" and "bang $500 on your credit card" and you think it's real? Dude...