AT&T Next Plans vs 2-year Contract

[randun]

I've been going back & forth with AT&T on choosing between these 2 plans. I've always had a contract plan.

I already have a $15 discount through my data plan, which is only 3GB. I'm not an early adopter of phones so their Next plans offer no incentive to me. Their argument is that of I continue with a contract plan is that I shouldn't get any discount at all since I'm getting the phone at a much reduced price.

Has anyone else been in this situation when ready to upgrade? If so, I'd like to hear about your experience.

 

[TWC42]

You have to do the math. If under contract, you pay $40 per month per line. If you own the phone, or buy it outright, or pay for it with Next in equal monthly installments, and have a data plan less than 15 GB, you pay $25 per month per line. If the data pan is 15 GB or more, you pay $15 per month per line.
Right off the top, if you have a 15 GB plan or higher, you pay $25 per month more if under contract, for 24 months, or $600 more. In most cases, adding to the $600 is the approx $200 initial payment and the higher activation fee, which is most likely more than buying outright or through Next.
If you have a data plan less than 15 GB, you "lose" $15 per month for 24 months or $360. Add the initial cost and the higher activation fee and in some cases it is cheaper than buying outright.
IMHO, I would rather be free of a contract and even wind up paying a bit more to do so. The choice is yours.

 

[randun]

Thanks much. Dummy me could have done that. They sent me a link to their calculator buy I never had time to check it out. This is all I need to know.

The only thing with me is that I have a shared data plan with my wife of only 3GB! We've never gone over. Somehow I'm still getting a $15 monthly discount though.

 

[cohoman]

I was in a similar situation last year and did the math on my options. I usually paid a prorated early termination fee to get out of my 2 year contract so I can upgrade my phone every 18 months or so. As such, it made more sense for me to do the Next Program when I ran the numbers. I learned that either way would cost me about the same amount over 2 years.

 

[randun]

Def makes sense for you but I rarely change phones every 2 years. That could change now though given the quick turnaround on models these days.

 

[cohoman]

If you keep your phone for over 2 years, then it probably is more cost effective to buy a phone on contract at the reduced subsidized price. But, I would make sure AT&T lowers your monthly rate for that phone from $40 to $15/no after your contract is up.

 

[randun]

If you keep your phone for over 2 years, then it probably is more cost effective to buy a phone on contract at the reduced subsidized price. But, I would make sure AT&T lowers your monthly rate for that phone from $40 to $15/no after your contract is up.

I've been negotiating with them. You can bet that I'm not going to pay $40/month without discounts involved since I'm currently doing so. Thanks for your help.

 

[thejesse]

The best way to save money is by not buying phone from AT&T at all. Buy one of the many inexpensive unlocked phones that came out this year or a lightly used phone from a site like swappa.com. Then you can make use of the greatest monthly discount available on your plan and saving a lot on the price of your phone while avoid contracts and payment plans.

Posted via the Android Central App

 

[randun]

An idea to consider.