My idea of keeping the 2-year agreement vs. going to Next

[slobkabob]

I made a trip to the ATT store yesterday to check out the Note 5 and ask some questions. It looks like getting the standard 2-year agreement renewed for a new phone involves a new catch. There is a $25 discount that we've (me and wife) been getting on each of our voice portion of the bill that we would end up losing if we use the standard 2-year agreement. Here's a breakdown of our current bill:

$100 Shared Data (15GB)
$40 Voice (Line 1)
-$25 Voice discount (Line 1)
$40 Voice (Line 2)
-$25 Voice discount (Line 2)
$4 World connect
$134 Total

If I choose to do a 2-year agreement, I can get the Note 5 for $249, BUT I lose my $25 Voice discount. This puts the cost of the phone for a 2-year agreement over the cost of the phone using the Next program. I can see how they're trying to push Next this way.

Anyways, I went home and did some math (yay maths!). It looks like we are only using an average of 4.50 GB per month so we decided to cut our data plan to $50 for 5GB. The small catch is that the Voice portion jumps to $50 for each of us (it was $40 with the 100GB plan). As a result, I end up saving $30/month from the data downgrade. Additionally, we don't need the $4/month World Connect any longer so that can go. This is what a new bill breakdown would look like:

$50 Shared Data (5GB)
$50 Voice (Line 1)
-$0 Voice Discount (no discount because of new 2-year agreement)
$40 Voice (Line 2)
-$25 Voice Discount (Line 2)
$115 Total

Does my reasoning sound right? We're in a unique position to downgrade our data as we don't need it. I can use the savings from that to offset the loss of my $25/month discount. In the end, I end up paying a little less AND keeping the 2-year agreement.

Thoughts? Suggestions?

 

[slobkabob]

Some additional info. It looks like the Voice portion (which I just learned is called the Access Fee, from the ATT rep via online chat) is still going to cost $40/month whether you are on the 100GB plan or the 50GB plan. So here's a revised breakdown if I go with a new 2-year agreement:

$50 Shared data
$40 Access Fee (Line 1)
-$0 Access Fee discount (no discount if I do a new 2-year agreement)
$40 Access Fee (Line 2)
-$25 Access Fee discount (Line 2)
$105 Total

Doesn't look like a bad deal, considering I get a huge discount on the Note 5 for a 2-year agreement, unless someone can point out a critical flaw.

 

[thejesse]

Some additional info. It looks like the Voice portion (which I just learned is called the Access Fee, from the ATT rep via online chat) is still going to cost $40/month whether you are on the 100GB plan or the 50GB plan. So here's a revised breakdown if I go with a new 2-year agreement:

$50 Shared data
$40 Access Fee (Line 1)
-$0 Access Fee discount (no discount if I do a new 2-year agreement)
$40 Access Fee (Line 2)
-$25 Access Fee discount (Line 2)
$115 Total

Doesn't look like a bad deal, considering I get a huge discount on the Note 5 for a 2-year agreement, unless someone can point out a critical flaw.

When you drop to the 5GB plan, I'm pretty sure you access fee discount drops to $15 per line instead of $25.

Posted via the Android Central App

 

[diesteldorf]

I currently have Sprint and Verizon, but have some knowledge on AT&T and most of my family uses them.

I did go to their website for reference to backup what I am saying.

Family Plans - Mobile Share Data Plans - AT&T

The baseline for a smartphone is $40 if it is on a contract.

If it is on Next or the device is out of contract, the price becomes:

$25 per line if the smartphone is on a data plan of 5 GB or Less
$15 per line if the smartphone is on a data plan of 10 GB or More

Here is your bill as best as I can calculate:

Data Plan = $50
Line 1=$40 with NO discount if you sign a 2 year agreement
Line 2=$40 with a $15 discount for being on 5 GB data plan and out of contract

Total =$115

If Line 1 goes with a Next agreement, the bill would drop by $15 to $100 total

Here is the million dollar question: A $15 discount x 24 months = $360


Is the discounted price on your new phone greater than $360 compared to the regular price, when you also add the upgrade fee??

If it's less than $360, finance it through Next and keep the $15 discount on Line 1. Good Luck

 

[diesteldorf]

When you drop to the 5GB plan, I'm pretty sure you access fee discount drops to $15 per line instead of $25.

Posted via the Android Central App

You're right about the discount dropping from $25 to $15. However, I think his total is still correct at $115, even though his figures actually add up to $105

 

[slobkabob]

When you drop to the 5GB plan, I'm pretty sure you access fee discount drops to $15 per line instead of $25.

Posted via the Android Central App

Yes, of course! This is why the Access Fee under the 5GB plan was $25 (with a $15 discount instead of a $25 discount at the 100GB plan). New calculation:

$50 Shared data
$40 Access Fee (Line 1)
-$0 Access Fee discount (no discount if I do a new 2-year agreement)
$40 Access Fee (Line 2)
-$15 Access Fee discount (Line 2)
$115 Total

It comes out to being $10 more. Still though, $115/month is not bad considering it's less than what I pay now and I retain a new 2-year agreement.

 

[slobkabob]

You're right about the discount dropping from $25 to $15. However, I think his ttal is still correct at $115, even though his figures actually add up to $105

Good catch, I had just changed it. I am bad at math.

 

[Chuck Finley69]

The flaw in the plan is the data usage. Each new model of phone uses more data by default. Each app with each upgrade uses more physical memory and then more data to run the app. My family plan usage has almost doubled from last year and that doubled from previous year. Think 5GB ->10GB->15GB. Our use behavior is still the same, the devices just consume more data.

Posted via Android Central App

 

[Chuck Finley69]

I have found the real area for saving money is buying phones that are factory unlocked online either through manufacturer or with Amazon retailers. You have to do some research to make sure you buy phone with LTE data bands compatible with your carrier. This is really only possible right now with AT&T or T-Mobile since they have SIM cards. Verizon and Sprint are still CDMA based. I pay extra for better coverage with AT&T but I couldn't get decent coverage with T-Mobile and I live in reasonable sized metro area in Florida(Tampa). I'd figure Next plan with 10GB and buy your device outright direct as first choice and through Next plan as second choice.

Posted via Android Central App

 

[thejesse]

I have found the real area for saving money is buying phones that are factory unlocked online either through manufacturer or with Amazon retailers. You have to do some research to make sure you buy phone with LTE data bands compatible with your carrier. This is really only possible right now with AT&T or T-Mobile since they have SIM cards. Verizon and Sprint are still CDMA based. I pay extra for better coverage with AT&T but I couldn't get decent coverage with T-Mobile and I live in reasonable sized metro area in Florida(Tampa). I'd figure Next plan with 10GB and buy your device outright direct as first choice and through Next plan as second choice.

Posted via Android Central App

This. The real savings is going by buying a less expensive phones. There are some really good unlocked examples. And some, like the new Motorola Moto X Pure Edition and the Nexus 6, will work on Sprint and Verizon.

Posted via the Android Central App

 

[anon(1017475)]

This is exactly what our family did as well. The math really doesn't work for the Next plans unless you're really burning through data. The wife and I go thru 3-5 GB per month. Plus AT&T usually does a "last year's flagship for free online only with a 2 year commitment" deal. That's how I got my GS5.

Posted via the Android Central App