T-Mobile Announces 'Jump' Phone Upgrade Program

[BruiserB]

To me, it actually looks like a pretty good deal, if I have understood everything correctly. Assume you want a new iPhone each year. You pay $146 up front, and then $10 per month. So that's $266 per year, which includes insurance. That's $22 per month indefinitely to always have the latest iPhone model.

If you instead buy the iPhone outright for $649, you may be able to sell it for $200 less or so a year later. That's about $16 per month or so. But you may loose more that $200 if the phone is not in good condition. And you're also not covered by any insurance. So the "Jump" deal sounds like a pretty fair deal to me.

No, it's $146 up front, $21 per month payment, then $10 per month to be in the plan, then each upgrade you pay $146 again. So if u upgrade every 6 months, you'll shell out $146 + $126 + $60 = $352 to upgrade. Roughly $59 a month to perpetually have the newest phone. Or if yearly, it's 146 + 252 + 120 = 518 / 12 = $43 a month.

So if you just buy outright, then sell your old phone for $250 less than you paid for the new one, its only costing you something like $21 a month.....half the cost if you handle it yourself. And a 1 year old iPhone unlocked will probably sell for more than a $250 loss....I was just being conservative.

 

[Doc69]

No, it's $146 up front, $21 per month payment, then $10 per month to be in the plan, then each upgrade you pay $146 again. So if u upgrade every 6 months, you'll shell out $146 + $126 + $60 = $352 to upgrade. Roughly $59 a month to perpetually have the newest phone. Or if yearly, it's 146 + 252 + 120 = 518 / 12 = $43 a month.

If this is how the Jump "deal" will work, then it doesn't make any sense. Who would pay over $500 per year to upgrade once a year, when you can just buy a new one for $649 and sell it with a much smaller loss?

If you are right, it's such a bad deal that I could not even conceive that it may work this way. I hope you're wrong though.

 

[spinedoc77]

If this is how the Jump "deal" will work, then it doesn't make any sense. Who would pay over $500 per year to upgrade once a year, when you can just buy a new one for $649 and sell it with a much smaller loss?

If you are right, it's such a bad deal that I could not even conceive that it may work this way. I hope you're wrong though.

Yeah, I was initially impressed with it, but after doing the math it doesn't seem like a good deal anymore.

 

[mikefla]

Sounds great, now if Tmobile would jump and work on their network issues that would be even better. Edge service really sucks! It should be banned for any US carrier, this is not a third World country. Wait a minute, a lot of other countries out there have even better networks than we do here in the US. It's a shame.


-Mike

 

[Oridus]

Yeah, I was initially impressed with it, but after doing the math it doesn't seem like a good deal anymore.

That's how they're trying to hook in customers. They're just using fancy wording and terminology that will seem like a good deal on the cover, and hope that people won't actually price it out.

If you think about it, the company still has the same costs as a contracted service, even if they say they don't have a contract. If you buy a phone from them with no contract for $100-200... you have to pay $20/mo on top of your plan to pay for the phone. If you cancel the plan before the 24 months of $20 payments is completed, you pay the $20/mo in one lump sum for the remainder of the months. So that's $480 reduced by $20 every month completed. It's STILL an ETF. They're just pulling the wool over people's eyes and it's KIND of working.

 

[rotor]

iPhone $649 + insurance $96 ($8x12) + $840 ($70x12) = 1585
Subsidized $146 + 1212 (($70+$21EIP+$10jump)x12 = 1358
iPhone $649 + $840 (70x12) = 1489

$1585 - $1358 = $ 227 unlocked iPhone more expensive if you don't sell iphone.
$1358 - $1135 (sold for $450) = $ 223 Jump more expensive by selling iphone.
$1489 - $1358 = $131 unlocked iphone w/o insurance more expensive than jump if you can't sell iphone.

Jump sounds pretty good if for some reason you can't sell your iphone. Or you can always insurance your iphone with a 3rd party vendor.

 

[MacMilligan]

It's more than $60 if you factor in the loss you will incur trading in the phone.

Just try to sell a 2 year old Android phone, you practically have to give it away to someone.

 

[617aircav]

Just try to sell a 2 year old Android phone, you practically have to give it away to someone.

Makes sense for android phones I guess.

 

[Tech198]

cool..

everybody 'Jump'

Not waiting for an upgrade program sounds good..... Users won't be 'put off' by the fact they wish to upgrade to a better phone, but need to wait.

This is basically saying "There will always be an upgrade program".

Their slogan sounds good too.

 

[mattopotamus]

I can't believe att also moved the upgrade to 24 months, it seems like plans are only getting worse and worse rather than better, it is a complete joke.

It is still the same for iphones, you can upgrade at 12 months for a upgrade fee of $250 and the $199 subsidized price. I just did a test on the apple website to confirm. Basically you can upgrade iphones every year and only lose ~$50

----------

To me, it actually looks like a pretty good deal, if I have understood everything correctly. Assume you want a new iPhone each year. You pay $146 up front, and then $10 per month. So that's $266 per year, which includes insurance. That's $22 per month indefinitely to always have the latest iPhone model.

If you instead buy the iPhone outright for $649, you may be able to sell it for $200 less or so a year later. That's about $16 per month or so. But you may loose more that $200 if the phone is not in good condition. And you're also not covered by any insurance. So the "Jump" deal sounds like a pretty fair deal to me.

I have att and every year I can upgrade for $449 to the newest iphone. I sell the previous generation for very close to that same price. It ends up costing me virtually nothing to have the newest iphone each year. I do not mind being in a contract b.c I have a great discount with att.

This only makes sense for people who do not know how to use craigslist or ebay. You can buy an unlocked phone and if 6 months later you decide to sell it, you will not lose much at all. I would say $150 at most, which is still cheaper than the $10 a month plus the subsidized price.

 

[MrXiro]

No, it's $146 up front, $21 per month payment, then $10 per month to be in the plan, then each upgrade you pay $146 again. So if u upgrade every 6 months, you'll shell out $146 + $126 + $60 = $352 to upgrade. Roughly $59 a month to perpetually have the newest phone. Or if yearly, it's 146 + 252 + 120 = 518 / 12 = $43 a month.

So if you just buy outright, then sell your old phone for $250 less than you paid for the new one, its only costing you something like $21 a month.....half the cost if you handle it yourself. And a 1 year old iPhone unlocked will probably sell for more than a $250 loss....I was just being conservative.

Thanks for doing the math! This is clearly a deal for people who don't sell their own devices. If they did sell their own, it is via Gazelle that pays you pennies on the dollar for things you could have sold on ebay for more money. But for the less informed this actually works as they will "not lose" as much money with frequent upgrades than selling to cheap trade in sites. Of course those less inclined to sell on ebay are also the same people less inclined to upgrade phones frequently.

----------

It is still the same for iphones, you can upgrade at 12 months for a upgrade fee of $250 and the $199 subsidized price. I just did a test on the apple website to confirm. Basically you can upgrade iphones every year and only lose ~$50

----------



I have att and every year I can upgrade for $449 to the newest iphone. I sell the previous generation for very close to that same price. It ends up costing me virtually nothing to have the newest iphone each year. I do not mind being in a contract b.c I have a great discount with att.

This only makes sense for people who do not know how to use craigslist or ebay. You can buy an unlocked phone and if 6 months later you decide to sell it, you will not lose much at all. I would say $150 at most, which is still cheaper than the $10 a month plus the subsidized price.

How good is your At&t deal that it tops $50 a month for essentially unlimited everything but with throttled data? I guess you could have the full unlimited Data plan but you're still dropping 100 bucks a month on that and with a 20% discount $80 + tax.

I am on a family plan with 5 lines... currently paying $196 a month after a 20% discount. A 5 line T-Mo plan will be $110 before tax and I'm assuming $120-ish after if we BYO our phones. That's nearly $70 a month!

 

[spinedoc77]

That's how they're trying to hook in customers. They're just using fancy wording and terminology that will seem like a good deal on the cover, and hope that people won't actually price it out.

If you think about it, the company still has the same costs as a contracted service, even if they say they don't have a contract. If you buy a phone from them with no contract for $100-200... you have to pay $20/mo on top of your plan to pay for the phone. If you cancel the plan before the 24 months of $20 payments is completed, you pay the $20/mo in one lump sum for the remainder of the months. So that's $480 reduced by $20 every month completed. It's STILL an ETF. They're just pulling the wool over people's eyes and it's KIND of working.

It still has some value though. You would be surprised at just how many people are inept at selling things, they are afraid of craigslist and ebay, and really with good reason in many cases. Plus you have to meet some stranger, they may lowball you, etc etc, or you may just have a dud of a phone that no one will give you any money for, ie: the facebook phone for example. It really is nice in many ways to just hand in your phone every 6 months and get a new one if you so choose.

 

[Wicked1]

Not sure if AT&T does this, but with Verizon, while you do sign a 2 year contract, you are able to upgrade within 6 months of your contract expiring. So really you are only locked in for 18 months. I don't see the need to continuously update your device unless you just have to have the best thing that's out. Which is fine, just would rather save that money to spend on something else.

My personal preference. To each their own of course!

Not anymore, both VZ and AT&T make you wait 24 months before you can upgrade, I do not think even AT&T is offering the reduced cost early upgrades anymore.

 

[anizzle]

Well Duh

Tying together some pieces, sorry if someone already said this!

Verizon is speculated to have a $12 -$14 billion shortfall in sales on its Apple contract. Is it not obvious to Verizon that by limiting upgrades, they are also limiting their ability to see new devices? The iPhone crowd (including me) loves new hardware, so why limit the opportunity to tie people into new contracts, and get updated devices?

 

[predation]

yeah this (imho) wouldn't really work for apple users because the resale value of the phones are pretty high.. that is unless this new model really jacks the re-sell market.


tmobile's new simple choice plan kinda jacked the market.

i can find iphone 5's all day long under $500

 

[ritmomundo]

Stefon!

 

[Doc69]

I have att and every year I can upgrade for $449 to the newest iphone. I sell the previous generation for very close to that same price. It ends up costing me virtually nothing to have the newest iphone each year. I do not mind being in a contract b.c I have a great discount with att.

Great point. If you change your phone every year or every other year, then both Verizon and AT&T are pretty good deals. Since the cost of a new phone is baked into the monthly fee, you only overpay if you don't take advantage of the upgrade at the end of your contract.

At the opposite end, the real advantage of T-Mobile is for people who already have a phone and don't want to upgrade frequently. Then they don't have to pay for a phone they didn't get.

 

[atteligibility]

When buying the new iPhone every year, assuming you are already using one:

* If buying full price, then resell on craigslist
Buy new: $650
Resell old on craigslist: $300 (usually higher than that, being conservative)
Total per year: $350

* Jump
Subsidized price: $150
Installments: $240
Jump: $120
Resell: nothing
Total per year: $510

Conclusion: Ripoff

 

[mattopotamus]

Thanks for doing the math! This is clearly a deal for people who don't sell their own devices. If they did sell their own, it is via Gazelle that pays you pennies on the dollar for things you could have sold on ebay for more money. But for the less informed this actually works as they will "not lose" as much money with frequent upgrades than selling to cheap trade in sites. Of course those less inclined to sell on ebay are also the same people less inclined to upgrade phones frequently.

----------



How good is your At&t deal that it tops $50 a month for essentially unlimited everything but with throttled data? I guess you could have the full unlimited Data plan but you're still dropping 100 bucks a month on that and with a 20% discount $80 + tax.

I am on a family plan with 5 lines... currently paying $196 a month after a 20% discount. A 5 line T-Mo plan will be $110 before tax and I'm assuming $120-ish after if we BYO our phones. That's nearly $70 a month!

1000 minutes with rollover and unlimited mobile to mobile, unlimited text, unlimited data. 30% discount and with tax am under $80

 

[PracticalMac]

When buying the new iPhone every year, assuming you are already using one:

* If buying full price, then resell on craigslist
Buy new: $650
Resell old on craigslist: $300 (usually higher than that, being conservative)
Total per year: $350

* Jump
Subsidized price: $150
Installments: $240
Jump: $120
Resell: nothing
Total per year: $510

Conclusion: Ripoff

I heard on radio the $10 extra is for INSURANCE, in case you brake it.
$10 (rather 9.99) for insurance is industry standard cost.

So if you damage it is some way, T-mo will still accept, and you get a nice new one.

Not that bad of a deal.

 

[freediverdude]

I think there's a deductible though if it's damaged, up to $170? I need to look further into that scenario.

 

[mj1108]

I heard on radio the $10 extra is for INSURANCE, in case you brake it.
$10 (rather 9.99) for insurance is industry standard cost.

So if you damage it is some way, T-mo will still accept, and you get a nice new one.

Not that bad of a deal.

Insurance already on a phone through T-Mobile is about $8....so to join Jump you only pay $2 more a month.

I'm an Android phone user (as much as I like Apple, I just don't like the iPhone)....so this program is going to be GREAT for me.

 

[maxosx]

I'm going back to a land line, dial up internet, and a pager and not deal with any of this.

Thanks for the thought.

I'm going back to a Feature Phone and a Moleskine

 

[atteligibility]

I heard on radio the $10 extra is for INSURANCE, in case you brake it.
$10 (rather 9.99) for insurance is industry standard cost.

So if you damage it is some way, T-mo will still accept, and you get a nice new one.

Not that bad of a deal.

You can call the $10 insurance, fee, whatever_you_want, it's still $10 out of your pocket to participate, it's not optional.

They call it insurance to confuse people, but at the end of the day, if your phone is not in great condition, you end up paying a (potentially high) deductible on top of that; so it's a very crappy insurance, worth virtually nothing.

----------

Insurance already on a phone through T-Mobile is about $8....so to join Jump you only pay $2 more a month.

I'm an Android phone user (as much as I like Apple, I just don't like the iPhone)....so this program is going to be GREAT for me.

Well, people day that but:
1) Do you currently have that kind of insurance? You might see the portion of Jump as being $2, but it still forces you to pay that $8 you may not have wanted
2) Not all insurance are equals. When you look at the deductibles for that one, it's quite an expensive insurance. If you break your phone, you will need to buy a new one, and buy the deductible, then keep paying your $20 installments and $10 jump, that is crazy...

Most importantly 3) you are not seeing the main point. Jump makes you EXCHANGE your phone. When you get the new one (up to 2 times a year), you get rid of the old one. THAT IS EXACTLY LIKE AN INSURANCE. You can just see Jump as an insurance with terms that let you exchange up to 2 times a year.
So it's not $8 insurance+$2 Jump, it is just a $10 insurance called 'Jump'.

Interesting though, give it a cool name and people get excited about insurances... haha

----------

Insurance already on a phone through T-Mobile is about $8....so to join Jump you only pay $2 more a month.

I'm an Android phone user (as much as I like Apple, I just don't like the iPhone)....so this program is going to be GREAT for me.

Also, just take the math from my previous post, add $8/month for the scenario in which you buy full price and insure it, it is still cheaper to do it that way than going through their process.

 

[MacAddict1978]

Better than you think

This is actually not bad... Warranty is $7/month with $150 deductible and you get a refurb as a replacement.

You don't have to pay off the old phone, so it's a wash. So for $3 a month more than the bogus warranty, you get a brand new handset that's not just new, but new tech. Even with the down payment, you're kind of better off than you are with the warranty.

Unless you get a phone at Best Buy, because their warranty is much better, but this isn't bad. I just would not carry the warranty anymore and hope for the best.