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AT&T, Verizon Modify Their Early Handset Upgrade Programs
by Karl Bode 10:19AM Tuesday Jan 21 2014
As the companies continue to play catch up with T-Mobile's disruptive efforts, both AT&T and Verizon have announced slight changes to their early handset upgrade programs, which ditch subsidies in exchange for monthly financing charges. In a statement, AT&T notes that customers on a two-year contract as of January 18 can sign up for their early handset upgrade program six months into their contract, an offer made to existing customers that indicates they're eager to prevent these users from switching to T-Mobile.

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As we noted when AT&T's Next was unveiled last summer, users originally had to wait twelve months before they could join the program, at which point they could trade in their handset without having to pay off the remainder owed.

Also reacting to T-Mobile is Verizon, who has announced they too are modifying their early handset upgrade program, named Edge. According to Verizon, Edge users now can upgrade after just thirty days (down from six months), though you'll still have to pay off at least half of the device.

It's worth reminding readers that cellular executives are on record admitting they jacked up the prices of services and data to counter the impact they take from subsidizing devices. Eliminating those subsidies without lowering service rates actually means you're not only paying more for service, you're effectively paying for your handsets twice (AT&T's new Value Share plans promise savings, but primarily only for higher data allotment plans).

It's unclear just how many users want to spend life on AT&T and Verizon's very costly bleeding edge, or if either effort will do much to counter T-Mobile's aggressive price disruption.

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IPPlanMan
Holy Cable Modem Batman

join:2000-09-20
Washington, DC
kudos:1

1 edit

1 recommendation

The T-Mobile Effect

John Legere is somewhere wearing a Magenta Batman Suit and laughing his ass off...

Steve B
Premium
join:2004-08-02
Auburn, WA

Lawdy....

"It's worth reminding readers that cellular executives are on record admitting they jacked up the prices of services and data to counter the impact they take from subsidizing devices. Eliminating those subsidies without lowering service rates actually means you're not only paying more for service..."

This can't be stressed enough. Even with AT&T slicing off $15, it still isn't a full adjustment.
viperlmw
Premium
join:2005-01-25

Re: Lawdy....

But here's my question. I have Verizon's granfathered unlimited data plan. I have an Iphone 4S, and utilize ~10-12gig 3G data per month. At $30 a month, I am paying a subsidized rate, but I don't think it makes sense for me to upgrade to a subsidized phone and loose the unlimited data, does it?

ptrowski
Got Helix?
Premium
join:2005-03-14
Putnam, CT
kudos:4

Re: Lawdy....

No.
elefante72

join:2010-12-03
East Amherst, NY
No but you can buy a used or refurbed one and still stay on the GF unlimited plan and save $$$. If you use lots of GB it doesnt make sense to get off the GF plan without behavior modification.

When I did, it was mildly disturbing (went to corporate plan), but once I eliminated all the crap and spent 5 minutes tuning my phone, I rarely go over 1-2 GB and that is with tons of streaming music. Youtube and the like will kill you, along w/ cellular skype/facetime.

It's amazing what you can offload to wifi if you tune your phone.

I also flipped the parents from costly Verizon (GF) plans (over $150) to H2O w/ Nexus 4 (which are not crappy phones) for $30 a month w/ unlimited and 500MB which is more than enough for them. So from $180 (taxes) down to $60 (no taxes) and an extra $120/month in the pocket is $1400 a year savings which could buy them all the new phones in the world if they wanted....

Pathfinder
Dazed Confused
Premium
join:2000-03-26
Mount Vernon, NY
Reviews:
·Verizon FiOS

Re: Lawdy....

said by elefante72:

No but you can buy a used or refurbed one and still stay on the GF unlimited plan and save $$$. If you use lots of GB it doesnt make sense to get off the GF plan without behavior modification.

Not sure about that. My son was on the GF unlimited plan when his phone died. He switched to my old 3G phone and they made him bump the plan. Now he gets 1Gig for r$30.

Notsosure

@verizon.net

Re: Lawdy....

As far as I know Verizon doesn't offer a single line 1GB plan. Single line data packages are 2GB, 4GB if you got the double data promo they had while back and recently they had a MAX feature trying to lure those that still have the unlimited feature but not sure if thats still ongoing.
wallyguy

join:2002-03-03
Wallingford, CT

Re: Lawdy....

I got sucked into the MAX promo, my first question before I let go of my grandfathered plan was does this qualify for my employee discount and was told yes. Well 2nd bill and guess what disappeared and a very lovely email from the employee discount group explain that since this is a "promo" it does NOT qualify for any discounts. Net-net I lost my 18% discount on my $30 data plan. I should have known big red would never do anything good for me as a customer.

Tim S

@dslextreme.com

2 recommendations

Why TMobile can't merge with Sprint

More proof TMobile is having a BIG impact (Verizon reacting to TMO???), despite all who say they have too small an imprint to have any impact. It's nice to see us consumers, whether your a TMO subscriber or not, getting something back!

IPPlanMan
Holy Cable Modem Batman

join:2000-09-20
Washington, DC
kudos:1

What about AT&T unlimited data plan people?

What happens to the AT&T unlimited data people under contract?

Are they eligible for this? Is there a reason to do it?
medbuyer

join:2003-11-20
kudos:4

1 recommendation

Re: What about AT&T unlimited data plan people?

said by IPPlanMan:

What happens to the AT&T unlimited data people under contract?

Are they eligible for this? Is there a reason to do it?

I would check with a corp store and ask...may even go to 3 stores just to make sure all are saying the same thing...

you shouldn't really but knowing how AT&T does business, you might just lose that unlimited plan.

but then again, I've heard people up getting new phones, upgrades, service credits etc. after calling AT&T and asking what can they do for them since Tmobile is more than willing to get their business.

»slickdeals.net/f/6621786-at-t-wi···ade-ymmv

IPPlanMan
Holy Cable Modem Batman

join:2000-09-20
Washington, DC
kudos:1

1 edit

Re: What about AT&T unlimited data plan people?

Awesome. Told a friend and they got a recurring credit of 30 dollars for the next 3 months. Thanks man!

He told me that the rep said they're taking calls like this all day about T-Mobile. AT&T is feeling the "burn of the churn"...
sava700

join:2005-03-08
united state

laughable

Verizon for example needs to step up and lower service prices. I'd rather pay for the phone and have lower service prices than the other way around.

dbeatson
Premium
join:2001-02-22
Clover, SC

Thank you!

I had a phone that was dead back in August, AT&T agreed to replace my phone but for a new 2 year contract. After reading this article I went online and sure enough I am now eligible for an upgrade, ordered a Samsung Galaxy Note 3 yes it is $35.00 a month but switching from a 2 year contract to the Next Plan reduces my monthly service by $15.00 a month so in the end I will pay $20 more for 12 months, I am ok with that for a brand new Galaxy Note 3.
--
»www.w4lny.com

RickNY
Premium
join:2000-11-02
Farmingville, NY
Reviews:
·Optimum Online

Targeting uninformed consumers

Back in December, we were informed that we could take advantage of a "great" offer from Verizon to do an early upgrade on our iPhone 5, which was purchased in October 2012.. All we had to do was turn in our iPhone 5, and we could walk away with the iPhone 5s for just the tax on $649, plus the 1st month's installment (followed by 23 more installments). What a ripoff, considering the 5 was fetching $300-$400 used, and Verizon wasn't offering any type of credit towards the new phone with the trade-in.

Unfortunately, many consumers are unaware of the value of their cell phone on the open market.. They don't think the phone they paid $199 for would be worth over $300 a year or two later. Its a shame that Verizon targeted people that wouldn't know any better.