Carrier Rumor that AT&T will end 2 year contracts at the end of May

[rui no onna]

Boy I hope you are right. I have no problem paying for my phone outright or doing my own financing. What really bugs me about the Next plan is that they have you pay for your phone and then they also make you trade it in. So it seems to me the customer pays for the phone and ATT gets to keep it. Right now with my contract plan, I certainly get that I'm paying for the phone through my monthly plan but at least when my contract is over, the phone is mine.

Next only requires trade in if you want to upgrade before you've finished paying for your phone. Once you've paid it off, it's yours to keep. With the Next 12 plan, assuming you upgrade right at the 12 month mark, you've only paid 60% of the purchase price. AT&T basically "forgives" the remaining 40% balance in exchange for your old phone.

 

[Nhwhazup]

Next only requires trade in if you want to upgrade before you've finished paying for your phone. Once you've paid it off, it's yours to keep. With the Next 12 plan, assuming you upgrade right at the 12 month mark, you've only paid 60% of the purchase price. AT&T basically "forgives" the remaining 40% balance in exchange for your old phone.

Thanks for the clarification. I guess I need to actually go to an ATT store and have a salesman review everything side by side. I'm such a skeptic that's it's hard for me to not think they always have some angle to further take advantage of the customer.

So do you only pay the exact amount of the phone and they divide it by the number of months whether you choose the 12, 18 or 24 month plan? I would rather take this part right out of the equation. Will ATT provide just a basic share plan with no phone payments? I would rather just pay for my husband's and my phones outright.

 

[Sketchr]

Thanks for the clarification. I guess I need to actually go to an ATT store and have a salesman review everything side by side. I'm such a skeptic that's it's hard for me to not think they always have some angle to further take advantage of the customer.

So do you only pay the exact amount of the phone and they divide it by the number of months whether you choose the 12, 18 or 24 month plan? I would rather take this part right out of the equation. Will ATT provide just a basic share plan with no phone payments? I would rather just pay for my husband's and my phones outright.

If you want to pay for the phone outright, I'd advise buying it from the Apple store.

The monthly unlimited calling and text charge is $15 per phone (includes a $25 month to month discount)as long as you pay for a data plan with 10GB or more.

 

[Newtons Apple]

I'm such a skeptic that's it's hard for me to not think they always have some angle to further take advantage of the customer.

I agree 100%.

To me AT&T is like Comcast and never to be trusted. I have been with AT&T for years and years and never had a problem with my cell phones accounts. BUT, I have my office landlines provided by AT&T and they are ruthless! They offer you two year contracts but in the fine print can raise their prices after one year! If you do not sign up for one of these contracts your phone bill can double.

 

[BeeGood]

This will force Apple to put up prices like $649, $749 up on the screen, which Apple probably doesn't want to highlight, because there are still a vast majority of people in the US who think their smartphones cost $199. Ouch.

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Nah. They will probably just put the lowest installment payment (30 month plan) and say "Starting at $18.84/month" or whatever.

 

[maflynn]

This is just speculation on my part, but my guess is while they will not cancel you plan or change your rate, you will not be allowed to purchase a subsidized phone.

They won't cancel anything, I chose my words carefully because I think the days of subsidized phones/contracts are coming to an end. If this rumor doesn't pan out, that only means the end of subsidized phones is deferred. ATT isn't going to cancel anything, just stop new subsidized phone sales.

 

[BeeGood]

I agree 100%.

To me AT&T is like Comcast and never to be trusted. I have been with AT&T for years and years and never had a problem with my cell phones accounts. BUT, I have my office landlines provided by AT&T and they are ruthless! They offer you two year contracts but in the fine print can raise their prices after one year! If you do not sign up for one of these contracts your phone bill can double.

We've been AT&T customers for a decade now (originally Cingular) and aside from not allowing FaceTime over 3G a while back (really ticked me off), I've never had a problem with AT&T Wireless. But I know that things can be different from one business unit to another. I'm also a U-verse customer and I'm underwhelmed to put it nicely, so I can believe that the business side might not be so stellar.

As far as AT&T wireless, my experience has been really good over the past 10 years, and NEXT just makes it better. It's too bad that they are taking away the 2 year contract for people who want that, but I think everyone saw that coming eventually.

 

[Woochifer]

Instead of "$199" now the iPhone will be advertised as "Zero down" "$27 per month." IMO, this would be more honest and transparent pricing. Good riddance to contracts and the whole BS price obfuscation game that comes along with those hidden costs.

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No thanks. I have no qualms with the subsidized model at all. Never have had any issues with it. Of course, I'm not one of those people who swaps carriers monthly to save a few bucks here and there. It's all a giant waste of time.

For those who don't care to upgrade their devices on an exact 24 month interval, contracts are also a giant waste of money.

 

[kupkakez]

Interesting. I am on my employers' plan. My company pays for my service but not the device. I wonder how Next works in a corporate environment.

It doesn't right now. I work for a TEM company who manages some very large companies cellular service and not one client uses Next or Edge as it just too much of a hassle at the moment plus they get big discounts for contracts.

Now for T-Mobile some clients do use the EIP, but it's a giant pain. Most of these clients that have T-Mobile just eat the device EIP as part of the "bill".

 

[Badrottie]

I hope they will not ditch grandfathered unlimited data plan like they did for iPad owner few years ago. This would be hard for deaf communities.

 

[kupkakez]

I hope they will not ditch grandfathered unlimited data plan like they did for iPad owner few years ago. This would be hard for deaf communities.

Why would it be hard? Most of us do not use our phones for the voice minutes but the data/text. Maybe I am missing something?

 

[QCassidy352]

As far as AT&T wireless, my experience has been really good over the past 10 years, and NEXT just makes it better. It's too bad that they are taking away the 2 year contract for people who want that, but I think everyone saw that coming eventually.

I've also had a really good experience with them since signing on in 2007 for the original iPhone. No complaints, really.

We have 4 smartphones on a 15 GB data plan, so we gave up the subsidies last year ($25 discount per line), but I guess the match actually still worked out for people on lower data plans (value of the subsidy is $450, and on a <10 GB plan, you only save $15/mo per line, meaning a $360 savings on your per month costs over 2 years). So sorry to see it go for those who still used it.

 

[Nhwhazup]

I hope they will not ditch grandfathered unlimited data plan like they did for iPad owner few years ago. This would be hard for deaf communities.

I still have an unlimited data plan for my iPad.

 

[kevink2]

The problem so much is the plan I have, counting the subsidy, is the cheapest that works well for me. "Unlimited talk/text" isn't necessary for ME with iMessage handling almost all my texting needs and the 450 minutes/rollover handling all my needed talk time.

I signed up for a new contract last September, so it isn't an issue for awhile. If no more contracts after that, I may just buy the phone outright, and try other plans like Tmobile.

Actually, I'm considering a couple of international vacations after that anyway, so TMobile sounds appealing.

 

[Badrottie]

Why would it be hard? Most of us do not use our phones for the voice minutes but the data/text. Maybe I am missing something?

Many deaf people like me use Videophone relay service that use huge bandwidth data so we need unlimited data plan. I remember one time Social Security office put me on hold via relay service videophone for about 5 to 10 minutes and I got text message saying they will throttle my data! I find hearing people can use voice for chit chat for more than 10 minutes without data.

If you don't know what relay service for deaf people I can give you an example what we all deaf people use.

Take a look

 

[kupkakez]

Many deaf people like me use Videophone relay service that use huge bandwidth data so we need unlimited data plan. I remember one time Social Security office put me on hold via relay service videophone for about 5 to 10 minutes and I got text message saying they will throttle my data! I find hearing people can use voice for chit chat for more than 10 minutes without data.

If you don't know what relay service for deaf people I can give you an example what we all deaf people use.

Take a look

Gotcha! Thanks for the explanation! In that case hopefully they keep unlimited data around.

 

[C DM]

Many deaf people like me use Videophone relay service that use huge bandwidth data so we need unlimited data plan. I remember one time Social Security office put me on hold via relay service videophone for about 5 to 10 minutes and I got text message saying they will throttle my data! I find hearing people can use voice for chit chat for more than 10 minutes without data.

If you don't know what relay service for deaf people I can give you an example what we all deaf people use.

Take a look

Don't carriers have (or supposed to have) specialized services and plans for situations like that so that things like that shouldn't be a concern?

 

[Badrottie]

Don't carriers have (or supposed to have) specialized services and plans for situations like that so that things like that shouldn't be a concern?

I don't know. I think all carriers are not thinking about deaf people anymore.

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Gotcha! Thanks for the explanation! In that case hopefully they keep unlimited data around.

Yes I hope so.

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I still have an unlimited data plan for my iPad.

I am guessing you bought a SIM card from eBay right?

 

[Sketchr]

I don't know. I think all carriers are not thinking about deaf people anymore.

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Yes I hope so.

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I am guessing you bought a SIM card from eBay right?

I've had my unlimited att iPad data plan since the very beginning-the first 10 days or so when the device was initially rolled out and before they dropped the plan . Often consider selling it....but then change my mind.

 

[goudok]

If 2 year contracts are done, i wonder what would happen to android sales. I can't imagine people dishing out 700 for a samsung device. All the people that i know who have a samsung is because they are on a 2 year contract and got the device for free.

 

[applegeek97]

Then i'll be off to T-Mobile. That is the only reason i'm still w/ ATT

 

[TWD98j]

I for one certainly hope this isn't true. I would think that the wireless companies want to attract as many customers as they can, which constitutes giving them options.

If it is true, then hopefully those of us who are grandfathered can remain as such. My 5S contract is up in September and I'm looking forward to a re-up with a 6S Plus on a new 2 year contract come release date.

If I can't do that, then I'm going to just stick with my 5S month to month I guess. I refuse to jump onto a Next program and I also refuse to switch carriers.

 

[rui no onna]

If 2 year contracts are done, i wonder what would happen to android sales. I can't imagine people dishing out 700 for a samsung device. All the people that i know who have a samsung is because they are on a 2 year contract and got the device for free.

Don't really see much of an issue when carriers and retailers can just advertise phone pricing based on monthly installment amount. I reckon there are folks who'd be willing to pay $30/month for a Samsung or other Android flagship. That said, I do think there are plenty of price conscious folks who will start looking at less expensive devices once the Android flagships stop selling for "free".

I think moving away from the subsidy model will greatly benefit those who buy inexpensive phones such as a Moto E or Moto G that are offered "free" on 2-year contract. There's really no sense paying a $450 subsidy for a device that only costs $150-200.

 

[rui no onna]

So do you only pay the exact amount of the phone and they divide it by the number of months whether you choose the 12, 18 or 24 month plan? I would rather take this part right out of the equation. Will ATT provide just a basic share plan with no phone payments? I would rather just pay for my husband's and my phones outright.

Yes, pretty much (+/- a couple of dollars for rounding off). Take note, the designation of Next 12, 18 and 24 refers to the number of months before you can do an early upgrade. The actual number of months for installment payments are 20, 24 and 30 respectively (iirc).

Assuming you upgrade right at the 12/18/24 month mark, here's the effective trade-in value you're getting:
Next 12: 40%
Next 18: 25%
Next 24: 20%

Way less than what you get selling but the draw is trade-in is hassle free. Next 12 is actually in line with what you'd get from sites such as Gazelle. Next 18 and 24, you're better off paying the remaining 20-25% balance and trading in the phone elsewhere.

 

[e93to]

I wonder how soon the carriers in Canada will adopt this.