Why the contract?

[fattire357]

It doesn't make sense to get a phone off contract since part of your $99/month goes towards subsidizng your $199 iPhone.

I just wish all companies went the way of at mobile and offer -20/month for contract- free phone plans without giving you a new phone every 2 years...

 

[0007776]

All I'm saying is that the phone should not be so tightly tied to the contract. If I have to sign a three year deal so be it. Just let me upgrade even once a year to a new phone. The phone can't be that expensive that it can't be paid off in the first year.

The phone isn't tied to the contract. If you want to upgrade every year you can, just buy a new phone at full price, it won't do anything to your current contract.

 

[jclardy]

Why do all these wireless companies have to bind people to a contract just to keep them? My thought is that if they offer great products, plans, and services then the customers would stay all on their own. But the contract is not even my biggest gripe. It's that I'm also bound to the phone I choose as well. If I want to upgrade I have to wait out the contract and the kicker is that when I do upgrade I have to sign another contract for another three years. That's a bit over the top if you ask me. Kind of forces customer loyalty instead of promoting it.

You can upgrade whenever you want, it is just going to cost you more money because you are still paying off the subsidy. You can't buy a $700 phone every year for $200 just because you pay your cell phone bill.

For the most part, in the US, it doesn't make sense to buy a phone without a contract as the plans still cost the same whether you bring your own or buy one with the subsidized price.

 

[bigpoppamac31]

Yeah but most people like me don't have that kind of money. Mind you I say that while typing on a new 2011 MBP I bought last month but I saved for it for about a year. I don't exactly have $2,000 just sitting around.

 

[Eddyisgreat]

They already do this in the UK (extra tarrif for the phone per month).

They don't do this in the US.

/thread

 

[r.j.s]

Yeah but most people like me don't have that kind of money. Mind you I say that while typing on a new 2011 MBP I bought last month but I saved for it for about a year. I don't exactly have $2,000 just sitting around.

Can't have everything you want ... not a lot of people can afford it, that's why phones are subsidized at the beginning of a contract or on a renewal.

 

[IcyStorm]

The carriers have nothing to gain for doing this in the United States. Why should they do this when you'll probably go back to them when your contract's up to do it all over again?

 

[boomhower]

What most seem to be missing is you are paying for a subsidized phone whether you are in contract or not. When you pay $200 for an iPhone and sign a contract for two years or you pay $650 for it and don't sign a contract your bill is still the same. In essence you are giving away free money but not signing. But you have the freedom to leave whenever you want without penalty. But even with a $350 ETF, $200+$350=$550 which is still $100 less than just buying the phone. It's the way the system is and that's not going to change anytime soon.

T-Mobile is the only carrier that offers a lower monthly price if you bring your own equipment. Sprint is just the opposite in that you have to sign a contract even if you bring your own phone.

 

[jjlannoo]

See that's why I don't get why anyone would buy a unlocked iPhone for full retail. I mean your going to have to pay for service anyways right?

 

[Small White Car]

Boy, I sure wish someone would buy me a new Macbook Pro every year.

But instead I have to keep them for 5 or 6 years before I buy a new one. That's what I can afford so that's what I do.

Funny, I never thought about complaining that someone else should just be buying me one every year.

 

[Judas1]

Because the carriers want you to pay the outrageous price for their services. They want you to pay for all three, voice, data, and messages, separately, although they are all data. They don't want you to realize that with the advancement in telecommunication technology, it cost next to nothing to transfer data, and they have recouped their investment in the infrastructure a long time ago. And lastly, because we're suckers for shiny new toys.

 

[bigpoppamac31]

The thing for me is that I have to wait until March to be able to upgrade (I can do it within the last six months). But by then it may be close enough to the next iPhone launch that I may as well wait for that one instead. By then it would be no point to get the "4S" when I could wait a few more months for the "5". I'd be pissed if I got the "4S" in March and then in the summer the iPhone 5 comes out.

 

[r.j.s]

There is always something better just around the corner.

 

[bigpoppamac31]

Clearly. But it wouldn't make it any less upsetting.

 

[kfergiez]

I have an idea for you. Sign your three year contract, get your discounted phone. Then you start putting away $40 each month towards a new phone. That way, you can upgrade every year! yay! You now have done your exact idea of having the phone company charge you a bit each month to pay for the phone... except in reverse!

 

[qpixo]

See that's why I don't get why anyone would buy a unlocked iPhone for full retail. I mean your going to have to pay for service anyways right?

I'm curious to know what about those people that can buy unlocked iPhone in Ebay? Does it cost less?

 

[Bryan Bowler]

Wow, I've met some dense people before, but this takes the cake!

 

[RabbitLuvr]

The thing for me is that I have to wait until March to be able to upgrade (I can do it within the last six months). But by then it may be close enough to the next iPhone launch that I may as well wait for that one instead. By then it would be no point to get the "4S" when I could wait a few more months for the "5". I'd be pissed if I got the "4S" in March and then in the summer the iPhone 5 comes out.

Yep. That's what happened to me with the 3Gs. I was eligible for my upgrade discount on March 5th this year. I could have gone with iP4, but decided that since it was close enough to the release to iP4s, I would just wait.

My 3Gs worked just fine in the mean time.

I guess I could have just sat around crying about my misfortune that I happen to be in the "s cycle," maybe I'll try that next time and see if it gets me anywhere.

 

[darster]

I truly would like to pay full price, if the phone I buy outright could be used on ALL networks. Why pay full price for a phone that is locked to Verizon or AT&T? Remember 3 years ago when the government sold all that new bandwidth on condition that the phone companies would allow you to bring your phone to the network or any other network? Remember how Verizon and AT&T said they would do that? Still waiting for that to occur. If I drive to the Verizon store and pay full price, it should be unlocked, and I would be able to use it on Sprint, AT&T, T Mobile, US Cellular and so on. The way they operate it now it's like buying a new car at full price from Ford, but only being allowed to drive it on east/west roads and not north/south. For that you would have to buy full price from Chevy.

 

[JoeG4]

If you have a fancy enough plan and seniority with the carrier, you will probably be able to get a shiny new iPhone every year if you ask. I've seen it done before, as annoying as that is.

Most prepaid/"no free phone" plans are a ripoff anyway - because there are tons of people willing to pay for them. That is - people that do not wish to sign a contract, those that have really really bad credit, those that haven't paid their last carrier's phone bill for some reason, and anonymous people that pay cash and don't want a paper trail for some reason or another.

With the iPhone, it almost always costs more to go prepaid/contractless. $649 for an iPhone.... with tax in California that damn thing would cost at least $700. Even if you go with Virgin Mobile ($35 a month, NOT EVEN POSSIBLE) you'd be paying ~$64 a month over the course of 2 years.

In reality, I think the bare minimum you can run an iPhone for is $40/month, so you're right back at the contracted price anyway.

 

[aneftp]

I think we should just get free phones when we want. Why not

AT&T Premiere customers used to get 1-5 (fully subsidized phones every month) via online up until about 3.5 years ago. So up until early 2008 I was eligible for fully subsidized pricing every month. I am not kidding. For some reason AT&T systems kept on letting me buy fully subsidized phones each month. Maybe it depended on the FAN account.

I didn't buy every month. Maybe like a phone every 5-6 months.

Sadly AT&T closed this loophole when people realized this and started abusing it. Like buying 5 fully subsidized phones every month on their family lines and immediately reselling them on eBay/Craigslist. (you guys know who you are out there).

 

[Stealthipad]

Even if you approach AT&T as a new customer with you own phone and want service, you are required to sign a two year contract. ALL of the carriers do the same thing.

Contracts are not just to get you to pay for equipment but also to keep you with the carrier. The only time you are free is when your contract is over. At this time the entice you with a big discount on your next phone.

 

[IO01]

See that's why I don't get why anyone would buy a unlocked iPhone for full retail. I mean your going to have to pay for service anyways right?

I just bought an unlocked iPhone 4s. I don't want a data plan (if I want to use the Internet, I'll just use WiFi). I also changed to a PAYG plan to see if I can get the costs down even further.

Also, I've been spending my summers in Korea the last few years. Starting next summer, I'll be able to take my phone with me and use it there.

 

[aneftp]

Even if you approach AT&T as a new customer with you own phone and want service, you are required to sign a two year contract. ALL of the carriers do the same thing.

Contracts are not just to get you to pay for equipment but also to keep you with the carrier. The only time you are free is when your contract is over. At this time the entice you with a big discount on your next phone.

No. False. You can sign on as month to month even as new customer. You need to insist on month to month. The reps will try to push you sign but you do not need to.

It's like a car dealer. They lie all the time. They will even insist you go prepaid. But you can go as a postpaid customer. You just need to find the right agent or go to a different store and find the right person.

Than you must have them note in your new account that you didn't use your subsidy. People have been burned by this when the agent or someone else makes it look like you used your subsidy and you can't get an upgrade for 11 months.

 

[briand05]

You sign the contract to get the $650+ phone for $200+, you are no obligation to sign a contract you could just pay the full price and get service with no contract. Most people in the US at least will go with the contract since with most carriers there's no discount on your plan for not signing a contract and since well the phone is useless without service you may as well get the discount for signing the contract. I mean really it's not a big deal anyway if you want to upgrade before your eligible for another discount you can just sell/trade in the other phone and pay full price for the new one. I don't really mind paying the full price IF the new phone was a big upgrade, but as a 4 owner say idk if it would be really worth it to do for the 4S.