It depends on a lot of factors, and how you use it. They are marketing it as a way to upgrade early because they will make money on those customers who do so. But basically it's free financing for your phone split up over 20 or 24 months. If you hold it for 2 or 3 years it can be a cost saver because once your payments are up your bill will be lower than when on a standard contract.

Those who upgrade early are basically selling their phone to att for the price of whatever remaining payments they have left. So you're selling it at 60% depreciation for the 12 month upgrade or 75% depreciation for the 18 month upgrade. That doesn't sound good but I'm not sure of typical phone values at 1 year or 18 months. Or you've been leasing/renting it. However you want to look at it.

For me, I'm trading in a 3 year old phone and could have been saving money for over a year with a next type plan compared to my monthly contract.

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Posted by htownjeep

Republic of Texas

Member since Jun 2005

7612 posts

Posted on 9/12/14 at 12:19 pm to Croacka

quote:
here is a breakdown from ATT's site

Here's a calculator from AT&T if anyone wants to figure how their individual situation would be impacted:

LINK

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Posted by BilJ

Member since Sep 2003

158781 posts

Posted on 9/12/14 at 12:33 pm to Rev1897

I don't think its really a scam, if like some said you hang onto the phone past the 12-18 month period.

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Posted by TigerinATL

Member since Feb 2005

61576 posts

Posted on 9/12/14 at 12:52 pm to Rev1897

quote:
Hmmm. Is it worth it to switch carriers? this AT&T Next thing really seems like a scam.

It's not a scam, they are actually reducing their rates because TMobile and Sprint are putting downward pressure on the market. I now pay nearly half of what I paid a year ago for phone service while getting twice as much data. The scam was the previous set up where I was paying for an upgrade I wasn't using.

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Posted by Qwerty

Member since Dec 2010

2114 posts

Posted on 9/12/14 at 1:11 pm to TigerinATL

quote:
The scam was the previous set up where I was paying for an upgrade I wasn't using.

This. My being thrifty by not upgrading in over three years has actually been costing me money compared to this plan.

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Posted by LSUSUPERSTAR

Member since Jan 2005

16327 posts

Posted on 9/12/14 at 6:48 pm to Qwerty

Here is how the it would work for my case:

If we keep our phones for lengthy periods of time, it would work out better on the new plans cost wise. But phones really don't hold up over the long run and getting a new phone every two years is almost a must.

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Posted by Burlee

Memphis, TN

Member since Aug 2006

7324 posts

Posted on 9/15/14 at 1:01 pm to BilJ

quote:
I don't think its really a scam

I agree. Pricing out a plan for my daughter and the next monthly payment is only $7 more than the contract monthly payment after the various discounts you get on your monthly payment for going with the Next program. At the same time, you don't have to pay for the phone ($100 - 200) or the activation fee ($40) or another $100 - $200 for the upgrade after your phone is outdated after 2 years. So, two years on the next program, you've paid $168 more ($7X24 months) - and you get a free new phone every 18 months. Seems reasonable to me or am I completely missing something here?

This post was edited on 9/15/14 at 1:14 pm

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