Hidden Traps in AT&T Next plans?

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I've run all the numbers for my situation, but am naturally suspicious that they are seemingly pushing people to a cheaper plan an supposedly discontinuing 2 year contracts. Maybe it's just me.

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Well, tell me about your current plan. What are you getting and for how much? (including minutes, texting, data, all of that).

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If you lose/break/damage phone, are you SOL as far as trade in?

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Yeah. Basically, when you take the phone, you've bought it. It's yours. Consider the installments an interest-free loan from AT&T, completely independent of any insurance or other warranty. It's your choice whether you want to trade it in vs. pay it off.

I wrote a long, sarcastic-ish post in another thread regarding this. The next plan is a bad deal unless you're already stuck on one of the newer family share plans anyway and are intending to pay off rather than "rent" the phone. Because if you do the 12-month next plan, you are paying ALL of the sales tax on the phone, plus 60% of the phone's retail value, and then giving it back. That's only the best case scenario. If you do the 18-month upgrade, you are paying 75% of the phone's value and then giving it back.

You're right to be suspicious, because AT&T has done all of this shite only as a less-than-straightforward way to raise prices and discontinue the 2-year phone subsidy.

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if you lost or destroyed a phone with no insurance, you were on the hook for the replacement so it's not much different than now.

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Well, that's the point. If you lose/break your phone, you're going to want another one because you still have your AT&T service. However, with the old 2-year subsidized phone offer, you paid $199 plus tax and upgrade fee on your phone. If you lost it, you were out ~$250 and need a new phone. If something happens to your phone under the next plan, you're out $650+ and still need a new phone... In both scenarios, you'll have to buy your replacement phone outright, so the difference here is what you paid for the first one.

However, since AT&T's current scheme is to penalize the customer $25/month per phone if they do the 2-year subsidy, you're fricked either way. So this only applies to people who have held on to their older grandfathered plans and didn't fall for the trickery that arrived with Next.

I believe I said that.

Not in this thread, but maybe the other one you did

I'm on Verizon's edge plan which is essentially the same


These plans work better for groups than they do for individuals IMO

It's easy enough to work out the math with the current plans. It's best to calculate 24-month costs. Let's assume Vlad and his wife would be on the current 10GB plan.

Under the subsidized $200 phones using the current scam plan:

Plan: $100/month
Smartphone access charge (lol): $40/month per phone ($80/month total)

$180 x 24 months = $4320

Plus, let's assume normal $199 subsidized smartphones. 2 of those at $199 plus 9% tax and $40 "upgrade fee" per phone, roughly $515 for both phones.

Total 24-month cost, approximately $4835.


Buying your phone outright, whether it's through ATT Next installments or a direct purchase elsewhere:

Plan: $100/month
Smartphone access charge (lol): $15/month per phone ($30/month total)

$130 x 24 months = $3120

Plus, let's assume standard premium phone price like an iPhone 6. Two of those for $649 plus 9% tax. Approximately $1415

Total 24-month cost, approximately $4535. $300 less than the new contract scam.

Renting your phone for 12 months at a time through AT&T Next
Plan: $100/month
Smartphone access charge (lol): $15/month per phone ($30/month total)

$130 x 24 months = $3120

Plus $32.50/month for 12 months, then trade in for another phone for $32.50/month the next twelve months. 2 phones = $65/month for 24 months.

Total 24-month cost, approximately $4680. A $145 premium over 24 months to rent your phone and get yearly upgrades instead, not counting the money lost by not being able to sell your phone if you'd paid it off and kept it for 2 years.


AT&T has basically made it a poor decision to do the subsidized contract price IF you aren't grandfathered by an old plan.

Thanks

My current plan is Mobile Share Value and we just need new phones.

Running all the numbers comparing 2 year vs Next (including work discounts) shows Next is about $10 cheaper per month with all my factors, but I don't like the idea of paying $600 for a phone. If it's lost, I owe the difference I assume?

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. If something happens to your phone under the next plan, you're out $650+ and still need a new phone... In both scenarios, you'll have to buy your replacement phone outright, so the difference here is what you paid for the first one.

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That's my concern right there. I've never lost a phone, but hate the idea of owing this much to those assclowns in that scenario.

Next seems be great if you have several lines and use a lot of of data and want new phones fairly often.

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A $145 premium over 24 months to rent your phone and get yearly upgrades instead

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That premium is worth it to some people, and it's just an option


An option that you didn't have before NEXT

If you lost a phone before next, you still owed them for the rest of your contract so you were on the hook for money either way