Why does AT&T want to make me pay more for upgrading?

[TvTechGuru]

So I'm currently with AT&T. I have had the Nexus 4 since February 2013. So of course I bought it straight from Google and popped in my existing SIM card with AT&T. It's been a great phone but now over 2 years later I'm ready to upgrade. So I go onto the AT&T website and start looking at phones. First I must mention a few months ago I switched to their Mobile Share Value 2GB plan to save money. I had an old plan that was expensive. It dropped my bill from $98 to $67 a month after my employee discount.

Now, their website says if I upgrade my phone and sign a new 2 year contract I will lose some sort of "Mobile Share Value Discount". I had no idea I was getting any special discount to begin with. They didn't say anything about that. The only discount I have is through my employer, and that's only 14%. So their website said I would have to pay $15 more on my plan. Huh? Why?! I would be locking in with them for 2 more years, paying them for a phone up front, not their stupid Next program, and they want to punish me? I don't get it.

Needless to say I'll probably switch to Verizon since I can get their single line plan 2GB for $75. It's still cheaper and I can still use my employer discount on Verizon. If anyone can shed some light on why AT&T punishes those who bought a phone from Google I would love to know.

 

[Gekko]

So I'm currently with AT&T. I have had the Nexus 4 since February 2013. So of course I bought it straight from Google and popped in my existing SIM card with AT&T. It's been a great phone but now over 2 years later I'm ready to upgrade. So I go onto the AT&T website and start looking at phones. First I must mention a few months ago I switched to their Mobile Share Value 2GB plan to save money. I had an old plan that was expensive. It dropped my bill from $98 to $67 a month after my employee discount.

Now, their website says if I upgrade my phone and sign a new 2 year contract I will lose some sort of "Mobile Share Value Discount". I had no idea I was getting any special discount to begin with. They didn't say anything about that. The only discount I have is through my employer, and that's only 14%. So their website said I would have to pay $15 more on my plan. Huh? Why?! I would be locking in with them for 2 more years, paying them for a phone up front, not their stupid Next program, and they want to punish me? I don't get it.

Needless to say I'll probably switch to Verizon since I can get their single line plan 2GB for $75. It's still cheaper and I can still use my employer discount on Verizon. If anyone can shed some light on why AT&T punishes those who bought a phone from Google I would love to know.

consider AT&T GoPhone + Nexus 6 Direct from Google Play Store. best value and freedom bar none IMO.

good luck.

 

[IAmSixNine]

Im not with ATT but that plan may have been a plan that they no longer offer and it was merely a plan used to keep you around for 2 years.
Or it could have been promotional that lasted say a year and now its no longer in their system.
ATT is also a business out to make money for its shareholders. LOL so naturally they want more.

As another poster mentioned GoPhone, or you could go Cricket.

 

[cwise222]

If you bring your own device or go with AT&T Next, which is paying full price for the phone stretched across 20, 24 or 30 monthly payments, then you get a discount on your monthly plan since AT&T isn't subsiding the phone.

If you want a 2 year contract in exchange for a discounted phone then you will pay a higher rate each month so that AT&T can recoup the cost of the phone. If you want a $600 to $800 phone for $100 or $200 then AT&T will make up that loss somewhere; specifically by making you paying more per month. Since you got your current phone from Google and AT&T didn't have to discount the price of the phone by 75% or more you pay less each month as they didn't loose any money on the phone. They aren't punishing you or anyone by doing that; if you want that expensive phone for cheap then AT&T is going to try and cushion the $600 loss they are taking on that phone by charging more per month. It has always been like this but with the boom in people being open to paying full price on phones the carriers are now giving people discounts if they don't have to take that big loss on phones.

All carriers do this now. If you want a contract you will pay more per month for your plan then if you pay full price or bring you own device. Even Verizon does this, to the tune of $15 for the 2GB plan if you do Edge, though Verizon seems to move BYOD people to some sort of prepaid plan for $45 or $65 a month. Carriers also typically waive activation fees on non 2 year contract plans.

 

[TvTechGuru]

If you bring your own device or go with AT&T Next, which is paying full price for the phone stretched across 20, 24 or 30 monthly payments, then you get a discount on your monthly plan since AT&T isn't subsiding the phone.

If you want a 2 year contract in exchange for a discounted phone then you will pay a higher rate each month so that AT&T can recoup the cost of the phone. If you want a $600 to $800 phone for $100 or $200 then AT&T will make up that loss somewhere; specifically by making you paying more per month. Since you got your current phone from Google and AT&T didn't have to discount the price of the phone by 75% or more you pay less each month as they didn't loose any money on the phone. They aren't punishing you or anyone by doing that; if you want that expensive phone for cheap then AT&T is going to try and cushion the $600 loss they are taking on that phone by charging more per month. It has always been like this but with the boom in people being open to paying full price on phones the carriers are now giving people discounts if they don't have to take that big loss on phones.

All carriers do this now. If you want a contract you will pay more per month for your plan then if you pay full price or bring you own device. Even Verizon does this, to the tune of $15 for the 2GB plan if you do Edge, though Verizon seems to move BYOD people to some sort of prepaid plan for $45 or $65 a month. Carriers also typically waive activation fees on non 2 year contract plans.

I guess I understand what you're saying they do and how they do it.... But I believe it's bad business strategy and doesn't retain loyal customers like me. I've been with them for nearly 6 years and I don't see how they'd lose out if I renewed for 2 years. I'm still not sure if I'll leave AT&T or not. I just found out I wouldn't be able to get my employer discount over on Verizon on their single line plan. And after rough math, I might be paying the same on Verizon without a discount versus staying here on AT&T and losing the Mobile Share Value discount. So I'm not sure.

I appreciate everyone's input.

 

[TvTechGuru]

consider AT&T GoPhone + Nexus 6 Direct from Google Play Store. best value and freedom bar none IMO.

good luck.

I'm not interested in the Nexus 6. I really love the Nexus line, but I don't like how they made the phone's bigger after the Nexus 4. 4.7, 5.0, 6.0. Just too big of screens.

 

[cwise222]

I guess I understand what you're saying they do and how they do it.... But I believe it's bad business strategy and doesn't retain loyal customers like me. I've been with them for nearly 6 years and I don't see how they'd lose out if I renewed for 2 years. I'm still not sure if I'll leave AT&T or not. I just found out I wouldn't be able to get my employer discount over on Verizon on their single line plan. And after rough math, I might be paying the same on Verizon without a discount versus staying here on AT&T and losing the Mobile Share Value discount. So I'm not sure.

I appreciate everyone's input.

Basically they are loosing out or only really pulling even because if they loose say $600 when they let a customer pay $200 for an $800 phone then the cheaper rate plan does not make up for that $600 loss and they are loosing money on that subscriber. Its rather unfortunate; flagship phones are pushing the $1000 mark and more and more customer are loading onto already, in some places, strained LTE networks and demand better speed and stronger connection so carriers have to spend the money to maintain it and that just gets filtered down to the subscribers. It's a cruddy cycle really.

If you want to stick to the pay outright method like you did with the the Nexus 4 and it is holding on OK for you I'd suggest waiting and see what the next Nexus turns out to be, it certainly can't get any bigger and may drop back down to that 'normal' 5 inch mark, or see what Moto has in store with it's next Moto X. They have a near Nexus experience and tend to gravitate toward the smaller screen size and tend to not be sky high price wise.

 

[TvTechGuru]

Basically they are loosing out or only really pulling even because if they loose say $600 when they let a customer pay $200 for an $800 phone then the cheaper rate plan does not make up for that $600 loss and they are loosing money on that subscriber. Its rather unfortunate; flagship phones are pushing the $1000 mark and more and more customer are loading onto already, in some places, strained LTE networks and demand better speed and stronger connection so carriers have to spend the money to maintain it and that just gets filtered down to the subscribers. It's a cruddy cycle really.

If you want to stick to the pay outright method like you did with the the Nexus 4 and it is holding on OK for you I'd suggest waiting and see what the next Nexus turns out to be, it certainly can't get any bigger and may drop back down to that 'normal' 5 inch mark, or see what Moto has in store with it's next Moto X. They have a near Nexus experience and tend to gravitate toward the smaller screen size and tend to not be sky high price wise.

Thanks, I'll think it over.

 

[Almeuit]

Needless to say I'll probably switch to Verizon since I can get their single line plan 2GB for $75. It's still cheaper and I can still use my employer discount on Verizon. If anyone can shed some light on why AT&T punishes those who bought a phone from Google I would love to know.

You won't be able to use an employee discount on a single line plan.. Unless your company has some kind of deal with them. They state on that page that it excludes employee discounts (see below).

 

[TvTechGuru]

You won't be able to use an employee discount on a single line plan.. Unless your company has some kind of deal with them. They state on that page that it excludes employee discounts (see below).

Ahh true. However I still think it will be cheaper to switch to Verizon than stay with AT&T and lose the $15 discount.

 

[Gekko]

I'm not interested in the Nexus 6. I really love the Nexus line, but I don't like how they made the phone's bigger after the Nexus 4. 4.7, 5.0, 6.0. Just too big of screens.

so BYOD (language edited by mod) you want -

New GoPhone Plans with Unlimited Text to Mexico, Canada, and over 100 Other Countries

 

[TvTechGuru]

so BYOD (language edited by mod) you want -

New GoPhone Plans with Unlimited Text to Mexico, Canada, and over 100 Other Countries

I don't feel like paying full price for an unlocked phone.

Posted via Android Central App

 

[Gekko]

I don't feel like paying full price for an unlocked phone.

Posted via Android Central App

you'll pay one way or the other.

 

[Rukbat]

The bottom line here is that if you change your plan (and upgrading your phone is a plan change), you get your choice of the current plans at the time you make the change. It's always been that way. You can keep a 2010 plan until 2040 if you don't change anything, but as soon as you make a change, you have to go with what they offer now. (It's why people on unlimited data plans [unlimited at full speed], which no longer exist, go through all sorts of machinations to keep their plan.)

 

[mdk32014]

If you switch check out t-mobile. $75.00 for one phone is crazy. Verizon has a $50.00 1 gigabyte loyalty plan or two gigabytes $60 loyalty plan. Check those out as well and see if you can get that pricing. if not try cricket they are also Atnt.

Posted via the Android Central App

 

[Almeuit]

If you switch check out t-mobile. $75.00 for one phone is crazy. Verizon has a $50.00 1 gigabyte loyalty plan or two gigabytes $60 loyalty plan. Check those out as well and see if you can get that pricing. if not try cricket they are also Atnt.

Posted via the Android Central App

Loyalty plans is not really for new customers -- it is for existing ones.

 

[mdk32014]

I got it for someone. They had to call.

 

[WBSnow]

If you bring your own device or go with AT&T Next, which is paying full price for the phone stretched across 20, 24 or 30 monthly payments, then you get a discount on your monthly plan since AT&T isn't subsiding the phone.

If you want a 2 year contract in exchange for a discounted phone then you will pay a higher rate each month so that AT&T can recoup the cost of the phone. If you want a $600 to $800 phone for $100 or $200 then AT&T will make up that loss somewhere; specifically by making you paying more per month. Since you got your current phone from Google and AT&T didn't have to discount the price of the phone by 75% or more you pay less each month as they didn't loose any money on the phone. They aren't punishing you or anyone by doing that; if you want that expensive phone for cheap then AT&T is going to try and cushion the $600 loss they are taking on that phone by charging more per month. It has always been like this but with the boom in people being open to paying full price on phones the carriers are now giving people discounts if they don't have to take that big loss on phones.

All carriers do this now. If you want a contract you will pay more per month for your plan then if you pay full price or bring you own device. Even Verizon does this, to the tune of $15 for the 2GB plan if you do Edge, though Verizon seems to move BYOD people to some sort of prepaid plan for $45 or $65 a month. Carriers also typically waive activation fees on non 2 year contract plans.

Here's what I learned when I upgraded with my "promotional" plan, 30-gigabytes of data for the price of 15-gigabytes with AT&T:

If I had done the 2-year promotional upgrade to pay off the phone, I was going to loose my "promotional" plan, 30-gigabytes of data for the price of 15-gigabytes.

By me choosing the NEXT Program, I was able to keep my "promotional" plan, 30-gigabytes of data for the price of 15-gigabytes.

Also, I get a 22% discount through my employer.

Posted via the Android Central App