Subsidizing your N5

[redeyss]

Don't forget that there is no tax and fees on Gophone and straight talk service cards bought on eBay vs about 15% on AT&T. And...I always get a discount for my Gophone service cards, sometimes very big, ie $59 for a $100 card of which I bought four. That put my monthly down near $40 for the $60 plan.

Sent from my Nexus 7 using AC Forums mobile app

 

[JRDroid]

Or Customer B: switches from ATT to Metro PCS that uses T-Mobile network and customer buying a $300 nexus:
Customer pays full price ($300) for the phone but signs no contract. They then pay $40 a month for service for unlimited services with no additional taxes.
Total cost (for a phone and 2 years of service): $1260

Note with Metro PCS with two phones I get a $5 discount on each $40 monthly bill that includes taxes so I am really only paying $35 a month per phone. So in my case I pay $35 a month for unlimited services with no additional taxes (note 1st 200mbs are at 4gLTE speed then after 200mb moden it drops to unlimited 3G speed. You have more 4GLTE bandwidth options at $50 and up to $55.
My Total cost (for a phone and 2 years of service): $1140

Metro PCS is not available for purchase nation wide even though you can use their service nation wide (they do not sell service in Oregon for example). Also, for many people T-Mobile's network is a non starter. T-Mobile is great in big cities, but if you live in or frequently travel to a mid-size to small city, T-Mobile can be down right terrible. I am on AT&T for this reason. I frequently (3-4 days a week) am in areas where T-Mobile has poor or no service. Even though they are great where I live, they simply aren't a usable option. They also do not have service at all where my brother in law goes to school and my wife and I save a ton by being on a family plan with her family. Any recomendation for T-Mobile (or another carrier that uses their network) should include a warning to check your home/work/school/anywhere you frequently are to see if they have good coverage there. They are simply not a carrier you can make a blanket recommendation for.

TL/DR: Don't recommend people T-Mobile based service without telling them to check coverage in all thier frequent haunts.

The OP's plan is a valid plan (I do things like this regularly). The Straight Talk and AT&T prepaid plans are great too. Don't forget to check out Aio Wireless. You can get AT&T service with unlimited talk, text, and data for $55 a month. The first 2 GB of data are high speed then you get throttled though. It really depends on how often you need more than 2 GB of data or if you could maybe use WiFi more often to avoid using more than 2 GB of data. They also have the add a gig of highspeed data for the months you need it for $10 a month which still brings it in under the $70 for the standard AT&T or AT&T GoPhone plans. Or for the same $70 a month you get unlimited talk and text with 7 GB of high speed data. $15 a month over 2 years is $360, which is about what you would get out of your plan and makes it way easier to change carriers since you don't run the risk of not having the money for the ETF when you are ready to switch.

 

[SpidermanXP7]

I have done this on ATT, I was eligible for subsidized phone so I bought a iphone5 and extended my contract 2ys. I sold the unopened iPhone5 on ebay for $630. Cost me $150 for the phone, $36 to activate it and $80 in ebay fees so made over $370. I do believe who ever you sell the phone can not unlock it for the two year period so they have to use it on ATT at least that is what ATT told me.

 

[JonK]

I have done this on ATT, I was eligible for subsidized phone so I bought a iphone5 and extended my contract 2ys. I sold the unopened iPhone5 on ebay for $630. Cost me $150 for the phone, $36 to activate it and $80 in ebay fees so made over $370. I do believe who ever you sell the phone can not unlock it for the two year period so they have to use it on ATT at least that is what ATT told me.

Thanks for the input. Yes, it seems ATT will refuse to provide an unlock code until your contract is up but there seem to be services that will charge a fee and get your unlock code from apple.

 

[CoolBeit]

I have thought if doing this before. I don't think ATT really cares. Think about it like this:

ETF: $325
subsidized iPhone 5s $199.99
AT&T monthly service: Approx. $80/mo

If you bought the iphone 5s and kept it though the contract, AT&T would get $199.99 + $80*24 = 2119.99

When you buy the iphone, sell it to someone else (who is locked to AT&T), and pay your ETF, AT&T would get:
$199.99 + $325 + $80*24 = $2444.99.

Technically, AT&T MAY be losing a sale on an iPhone 5s to a particular customer (but probably not). And I doubt they care since your ETF was more than the subsidized cost of the iphone 5s anyway. So, let's just say you ARE causing AT&T to lose out on an iPhone 5s sale. They are still going to make:
$199.99 + $325 + $80*24 - $199.99 = $2245

Which is $125 more than they would have made had you just let your contract end (and the other customer went in and bought a subsidized 5s from the ATT store).

Your net profit is going to be something like:
$750-($199+$325) = $226, and that's neglecting tax and whatever fees AT&T makes you pay when you re-up (and possibly ebay fees depending on how you sell your 5s). So you have to decide if it's worth it. You're probably only going to net around $150ish. I might pay that much just so I don't have to walk into an AT&T store in the first place

In the end, both you and AT&T come out ahead right around $125. So, it's sort of a win-win. Except that you're helping AT&T make a profit and you're also taking all the risk....

 

[CoolBeit]

Thanks for the input. Yes, it seems ATT will refuse to provide an unlock code until your contract is up but there seem to be services that will charge a fee and get your unlock code from apple.

But now you're getting into shadier territory

 

[JonK]

I have thought if doing this before. I don't think ATT really cares. Think about it like this:

ETF: $325
subsidized iPhone 5s $199.99
AT&T monthly service: Approx. $80/mo

If you bought the iphone 5s and kept it though the contract, AT&T would get $199.99 + $80*24 = 2119.99

When you buy the iphone, sell it to someone else (who is locked to AT&T), and pay your ETF, AT&T would get:
$199.99 + $325 + $80*24 = $2444.99.

Technically, AT&T MAY be losing a sale on an iPhone 5s to a particular customer (but probably not). And I doubt they care since your ETF was more than the subsidized cost of the iphone 5s anyway. So, let's just say you ARE causing AT&T to lose out on an iPhone 5s sale. They are still going to make:
$199.99 + $325 + $80*24 - $199.99 = $2245

Which is $125 more than they would have made had you just let your contract end (and the other customer went in and bought a subsidized 5s from the ATT store).

Your net profit is going to be something like:
$750-($199+$325) = $226, and that's neglecting tax and whatever fees AT&T makes you pay when you re-up (and possibly ebay fees depending on how you sell your 5s). So you have to decide if it's worth it. You're probably only going to net around $150ish. I might pay that much just so I don't have to walk into an AT&T store in the first place

In the end, both you and AT&T come out ahead right around $125. So, it's sort of a win-win. Except that you're helping AT&T make a profit and you're also taking all the risk....

Well you are assuming I will pay the EFT.. I am going to continue with ATT service for the two years. My profit is more like $450 (retail price of phone which I am likely to sell it for - subsidized cost I paid) minus selling fees ect. If you pay the ETF the best you do is break even after taxes/activation fees/ebay selling fees ect. It is only worth it if you intend to stay on contract.

 

[JonK]

But now you're getting into shadier territory

Well, that is the buyer's problem to worry about . Just be an honest seller and say the phone is locked to ATT. The buyer can do with it what they will..

 

[CoolBeit]

Well you are assuming I will pay the EFT.. I am going to continue with ATT service for the two years. My profit is more like $450 (retail price of phone which I am likely to sell it for - subsidized cost I paid) minus selling fees ect. If you pay the ETF the best you do is break even after taxes/activation fees/ebay selling fees ect. It is only worth it if you intend to stay on contract.

Ah, I see. I missed that part. Yeah, you really can't go wrong.

 

[Gekko]

by paying AT&T $80/month for 2 years on contract you are subsidizing the iPhone upgrade by at least $20/month.

$20 x 24 months = $480
+ $199.99 =
$679.99 Total Paid over 24 Months for iPhone

are you really going to sell the iPhone for more than $680 less selling costs? enough to make it worth the hassle and risks?

 

[CoolBeit]

by paying AT&T $80/month for 2 years on contract you are subsidizing the iPhone upgrade by at least $20/month.

$20 x 24 months = $480
+ $199.99 =
$679.99 Total Paid over 24 Months for iPhone

are you really going to sell the iPhone for more than $680 less selling costs? enough to make it worth the hassle and risks?

I think in his case he has already decided he's sticking with att no matter which phone he has. In that case, he might as well upgrade and sell. If he buys a nexus 4, he's not taking advantage of the subsidy he's already paying for.

Sent from my Nexus 4 using Tapatalk

 

[JonK]

I think in his case he has already decided he's sticking with att no matter which phone he has. In that case, he might as well upgrade and sell. If he buys a nexus 4, he's not taking advantage of the subsidy he's already paying for.

Sent from my Nexus 4 using Tapatalk

Exactly. Gekko, I will paying ATT $70/mo (400 minutes + 3GB; I dont pay for text, remember not $80. By saying that I am subsidizing the iphone by $20, that assumes I could be getting the same service for $20 cheaper somewhere else. Name another plan that meets the following criteria:

-Wide spread LTE coverage (eliminates Tmo and sprint and any MVNO on those networks)
-Will support nexus 5 (eliminates VZW)
-Allows roaming and will never throttle my data speed (eliminates any MVNO)

The two options I am left with are ATT post paid or ATT gophone. Both will cost $70/month with 3GB of data. If I am going to pay $70/mo anyway I might as well sign a contract and collect my signing bonus.

And as an update, I bought the iThing at $300 and sold it for $765. I had to go ahead and sign up before the individual plans were gone. I left the iphone sealed and walked into an ATT store to get a microsim for free. The sim is waiting on my desk for a nexus 5 to be put in.

 

[dan1431]

I have been with at&t since the days of McCaw Cellular (circa 1987) and been month to month since 2000 and never looked back.

Last year I picked up the Nexus 4 and had been enjoying it for a few months when I had to call in about another line on the account which was having issues.

The agent noticed I was able to upgrade and offered me a new phone at the subsidized cost. I declined explaining that I had just purchased the Nexus 4 outright and had no interest in getting another new phone. The agent countered that I could get a free phone and just sell it, which while true is more effort than I care to put in.

She then offered something that appealed even more, a bill credit. Eventually after some bargaining back and forth we settled on $240 and I signed for two years.

So a bill credit might be an option.

Dan

Posted via Android Central App

 

[JonK]

I have been with at&t since the days of McCaw Cellular (circa 1987) and been month to month since 2000 and never looked back.

Last year I picked up the Nexus 4 and had been enjoying it for a few months when I had to call in about another line on the account which was having issues.

The agent noticed I was able to upgrade and offered me a new phone at the subsidized cost. I declined explaining that I had just purchased the Nexus 4 outright and had no interest in getting another new phone. The agent countered that I could get a free phone and just sell it, which while true is more effort than I care to put in.

She then offered something that appealed even more, a bill credit. Eventually after some bargaining back and forth we settled on $240 and I signed for two years.

So a bill credit might be an option.

Dan

Posted via Android Central App

Wow that is very cool. Thanks for the comments. That right there is good customer service. That is effectively what I am trying to get. That is nice that they saved you the hassle of going through ebay and what not.

 

[Gekko]

I have been with at&t since the days of McCaw Cellular (circa 1987) and been month to month since 2000 and never looked back.

Last year I picked up the Nexus 4 and had been enjoying it for a few months when I had to call in about another line on the account which was having issues.

The agent noticed I was able to upgrade and offered me a new phone at the subsidized cost. I declined explaining that I had just purchased the Nexus 4 outright and had no interest in getting another new phone. The agent countered that I could get a free phone and just sell it, which while true is more effort than I care to put in.

She then offered something that appealed even more, a bill credit. Eventually after some bargaining back and forth we settled on $240 and I signed for two years.

So a bill credit might be an option.

Dan

Posted via Android Central App

$240? and there's my magical $20/month x 24 months i came up with in my previous post. $240 was a fair deal for all involved IMO based on my calculations.

 

[pseudoware]

$240? and there's my magical $20/month x 24 months i came up with in my previous post. $240 was a fair deal for all involved IMO based on my calculations.

Isn't $240 $10/month in his case?

Sent from my Nexus 7 using Tapatalk 4

 

[Gekko]

Isn't $240 $10/month in his case?

Sent from my Nexus 7 using Tapatalk 4

I stand corrected!

 

[ultravisitor]

The two options I am left with are ATT post paid or ATT gophone. Both will cost $70/month with 3GB of data. If I am going to pay $70/mo anyway I might as well sign a contract and collect my signing bonus.

But again, remember that you're not just paying $70/month with AT&T postpaid. You will be paying taxes that you wouldn't otherwise be paying with AT&T GoPhone. It's more something like ~$85/month with AT&T versus $70/month with GoPhone. So if you're really looking to save every bit you can...

 

[JonK]

But again, remember that you're not just paying $70/month with AT&T postpaid. You will be paying taxes that you wouldn't otherwise be paying with AT&T GoPhone. It's more something like ~$85/month with AT&T versus $70/month with GoPhone. So if you're really looking to save every bit you can...

Ah, I did not take that into account. This made me go back and take a good look at gophone. Unfortunately I was wrong, there is no roaming with gophone. This may not be a factor for most but I have to consider this because I travel a lot.

ATT post paid (if you started service before they zapped the individual plans):
32GB iphone 5s: $299
Activation: $36
Sale of iphone: +$760
Ebay selling fees: $70
24 months of service (24*85): $2040
Total: $1685 (+cost of nexus 5)
Advantage: Better coverage with roaming

ATT GoPhone:
Activation: $?
24 months of service (24*70): $1680
Total: $1680 (+cost of nexus 5)
Advantage: No hassle with ebay, unlimited text and minutes (not an advantage for me but might be for some)

Still happy with my choice. Lots of great options here that might work better for some though depending on your needs. Thanks for all the input!

 

[dan1431]

Since I pay approximately $90 a month including a discount through my employer for unlimited voice / messaging / DATA that $240 bill credit is effectively another $10 a month discount bringing me in line with what I would pay T-Mobile for the same amount of services all be it with a smaller coverage area.

As I saw it, it was a win win for me.

Dan

Posted via Android Central App