wow, i wish sprint had decent service around where i live....
so would anyone here pay 650 or 750 for an 16/32 GB iPhone 5 when it comes out in exchange for not having to pay 120 bucks a month on verizon sprint or att?
Why would anyone do that? Because some people can actually do
basic arithmetic (as in elementary school).
Here we go
again.
AT&T and Verizon: $199 subsidized iPhone 4S, $36 activation fee, $120 per month ($70 unlimited talk, $20 unlimited text, $30 cellular data 3GB with AT&T at HSPA+ speed, 2GB with Verizon at EV-DO speed). Total cost of ownership over two years: $3115
Virgin Mobile: $649 retail iPhone 4S, $50 per month (unlimited talk/text/cellular data 2.5GB at EV-DO speed, throttled after 2.5GB). Total cost of ownership over two years: $1849
Cricket Wireless: $499 partially subsidized iPhone 4S, $55 per month (unlimited talk/text, cellular data 2.3GB soft cap at EV-DO speed). Total cost of ownership over two years: $1819
Straight Talk: $649 retail iPhone 4S, $15 SIM (one-time charge), $45 per month (unlimited talk/text, cellular data 2GB soft cap at HSPA+ speed). Total cost of ownership over two years: $1744
Monthly cost of ownership over two-year period:
AT&T/Verizon: $129.79
Virgin Mobile: $77.04
Cricket Wireless: $75.79
Straight Talk: $72.67
Straight Talk service is bare bones, but they are using AT&T's cellular towers. They don't tell you who you called, who sent you texts, how much data you've used, and you can't block numbers. But if you want HSPA+ speeds, they are a cheap dumb pipe.
And to the guys who say, "most people get corporate discounts of 10-25% from the big carriers", well, you still can't do math, can you? Even if you slash 25% off AT&T/Verizon's unlimited rate, that's still $97.34 per month.
If you opt for Straight Talk over a comparable plan from AT&T or Verizon, your break-even point is month six. If you were on AT&T or Verizon and wanted to walk away from the carrier at that point, you'd have to shell out an additional $260 or so in early termination costs.
People who can't do math are throwing hundreds of dollars away each year to the big carriers. AT&T stock dividend yields 8%. Thanks for putting money into my pocket, guys! You are partially paying for my Straight Talk cellular service!
Worse, if you have a postpaid plan, you are almost certainly paying a bunch of taxes that are added to the rates quoted by the carrier. The prepaid Straight Talk plan has a few mandated FCC charges, but no local sales tax. So someone using a postpaid AT&T/Verizon plan as quoted above is likely paying an additional $8-10 more in taxes than their next door neighbor on Straight Talk.
I can't do pricing analyses for every household's situation, but clearly, if you care about your money, you might spend a few minutes doing
your own analysis to see if you can save hundreds a year.
I will point out that in most countries, people buy handsets at full retail prices and pay much less for monthly service (which is not locked to a long-term contract). Only the United States and a handful of other countries have popular subsidized/long-term contract cellular sales model. The rest of the world is smarter than that.