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Ark4
join:2002-06-08
Lansing, MI

Ark4

Member

AT&T Next

I don't get AT&T Next. From what I've seen, you pay 12 or 18 monthly payments to buy the phone, but then in order to upgrade, you have to give them your phone? What's the point of "buying" it with monthly payments, only to have to surrender it to upgrade? The regular 2-year contracts where you actually get to KEEP your phone seem like such a better deal still.

IPPlanMan
Holy Cable Modem Batman
join:2000-09-20
Washington, DC

2 edits

IPPlanMan

Member

No down payment (have to pay tax)
No activation fee
No upgrade fee
No financing fee

"Any time after 12 or 18 monthly installments, you may upgrade to a new AT&T Next smartphone!
As long as your current smartphone is in good and working condition, you are eligible to upgrade to a brand new one. Or, you can choose to keep your current smartphone, and after 20 monthly installments (AT&T Next 12) or 24 monthly installments (AT&T Next 18), your smartphone is paid for, and no more installments are required."

Yes you have to give the phone back. However, now that there are line charge discounts ($15 off per line for under 10 GB shared data and $25 off per line for 10 GB and over) vs a 2 year contract if you are on Next, it's a better deal than it used to be. Otherwise, that was effectively a full price phone and plan, which meant carrier double dipping.
elefante72
join:2010-12-03
East Amherst, NY

elefante72 to Ark4

Member

to Ark4
Its a lease
78036364 (banned)
join:2014-05-06
USA

78036364 (banned)

Member

said by elefante72:

Its a lease

Not really. If you pay off the phone it's yours. You only turn it in if you upgrade before you pay it off. Why should you keep a phone if you only made half the payments?

Majestik
World Traveler
Premium Member
join:2001-05-11
Tulsa, OK

Majestik

Premium Member

More like rent to own.
Majestik

Majestik to Ark4

Premium Member

to Ark4
No thanks.
I'd rather keep my grandpa unlimited data with airline discount.
Get the iPhone 6.AT&T Unlock my Iphone 5 and sell it in Brazil.

gjrhine
join:2001-12-12
Pawleys Island, SC

gjrhine to 78036364

Member

to 78036364
And you are also paying for it in your data plan so you are paying for it twice. Most people do not know part of their monthly rate is paying for the carrier's subsidy.

IPPlanMan
Holy Cable Modem Batman
join:2000-09-20
Washington, DC

IPPlanMan

Member

The line discounts of $15 or $25 off are meant to offset that... Not sure if they do completely...

gjrhine
join:2001-12-12
Pawleys Island, SC

gjrhine

Member

I do not know of any line discounts in the Edge plan that are not in the standard plans.
ptb42
join:2002-09-30
USA

ptb42 to IPPlanMan

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to IPPlanMan
said by IPPlanMan:

The line discounts of $15 or $25 off are meant to offset that... Not sure if they do completely...

The $25 discount is a good deal: That's $300/year, or $600 over a two year period. An iPhone is $650 without a contract, $200 with a contract. So, you save $150 over the two year period, and the phone is unlocked when you buy it.

"Next" was a lousy deal before the discount. Now, you simply pay the cost of the phone over 12-18 months. You still save $150. But, the phone is locked until it is paid off.

Of course, you have to pay for a 10GB/month plan to get the $25 discount, even if you don't need all that data. But, our bill for two phones is lower than it has ever been.

IPPlanMan
Holy Cable Modem Batman
join:2000-09-20
Washington, DC

1 edit

IPPlanMan

Member

Still doesn't make sense to me why carriers want to do this...

They are subsidizing the whole cost of the phone over the installment period with zero down instead of only part of it.

gigahurtz
Premium Member
join:2001-10-20
USA

gigahurtz to gjrhine

Premium Member

to gjrhine
The EDGE plans are the value plans. Those are discounted for people who aren't getting subsidy.

gjrhine
join:2001-12-12
Pawleys Island, SC

gjrhine

Member

Could you be any more wrong? lol

They are neither discounted nor does any one in any plan get subsidies. Mktg depts like to call loans "subsidies" just in case someone believes it.
ptb42
join:2002-09-30
USA

ptb42 to IPPlanMan

Member

to IPPlanMan
said by IPPlanMan:

Still doesn't make sense to me why carriers want to do this...

T-Mobile forced AT&T's and Verizon's hand by offering "no-contract" plans. They offered a fixed payment schedule that would end after 2 years, and subtracted the former subsidy payments from the service fee.

T-Mobile did this this to entice customers to switch. I think they even offered to pay ETFs. It must have been working, because AT&T and Verizon quickly responded and offered no-contract prices at a significant discount.
elefante72
join:2010-12-03
East Amherst, NY

elefante72 to 78036364

Member

to 78036364
It is a $1 lease. I run these all the time. This means that at the end of the lease period, essentially you own it, but if you turn it in before the end of the lease (when the company has made a profit) (12/18 mo), you will pay a price in less value than what you have paid into it (the money factor). In addition, now AT&T can go and resell that device and make profit on it again, or liquidate it. The good ones will remain CPO (certified pre-owned) and the rest get liquidated not too much different than you see in car sales.

As a consequence like a regular car lease, it has to be in good condition, otherwise they will assign less capital value when you turn it in, or say if you have a cracked screen and no insurance, fix it first or pay it off.

gjrhine
join:2001-12-12
Pawleys Island, SC

gjrhine to IPPlanMan

Member

to IPPlanMan
No your monthly costs increase significantly.