AT&T: My NEXT Program Cost Analysis

[cohoman]

I decided to do a cost analysis comparing the NEXT program and the new 10 GB Family Shared Plan versus my current 2-year contract agreement with 6 GB Shared Plan. So with my current 6 GB plan I'm paying $170/month for two smartphones and one iPad Tablet. With the new 10 GB Family Shared Plan, I would be paying $140/month (this is for phones that are off-contract).

With the NEXT program you pay full retail price for the phone (with monthly payments spread out over 20 or 26 months), and you can upgrade your phone at the 12 or 18 month mark with no extra cost. You need to trade in your previous phone, and you continue to pay a monthly payment for your new phone. Of course, you can keep the phone if you fully pay it off.

Now, I compared the overall cost between using a NEXT phone + new 10 GB Family Shared Plan versus a 2-year contract + 6 GB Shared Plan, taking into consideration possible early upgrade for the 2-yr contract phones by paying Early Termination Fees. With the comparison, it appears that I would be saving money if I upgraded my smartphones at the 12-18 month mark using the NEXT program. If I waited until the 2-year contract expired, then it is a wash and I wouldn't be saving any money.

Since my wife and I routinely upgrade our smartphones every 12-18 months (and pay the ETF), it seems to make sense for us to use the NEXT program the next time we upgrade our phones. I can't remember the last time we actually waited for the full 2-yr contract to expire, so it really isn't important to me that we own our smartphones. Paying a monthly fee for our phones seems the most economical in our situation.

 

[sulla1965]

Re: My NEXT Program Cost Analysis

In a nutshell, Jump, edge, next etc, etc, are only worth it if you like getting a new phone every 6-12 months. Otherwise its best to go with the 2 year deals. Remember these options aren't intended to save you money, just allows customers to upgrade more often without paying full price for the phone.

 

[erwaso]

Re: My NEXT Program Cost Analysis

What i figured is if you factor in upgrade fees and upfront cost up front, it could cost the same OR even less using the NEXT program plus you can upgrade early, 18mo vs 24mo. for example for 3 smartphones staying on the 2yr contract and 6gb plan:

$36 upgrade fee x 3 = $108
new $100 subsidy iphone 5c x 3 = $300
= $408
divided into 24 months adds $17/mo.
Add that to the rate of $200/mo (6gb plan and 3 SM) and you get $217/mo

With NEXT for the same iPhones:
$145 10gb plus 3 lines
$63 for 3 iphone 5c (NEXT 18)
=$208/mo

Say you want 3 GS4s:
$145
$73.86 (NEXT 18)
= $218/mo

but if you lose the phone you're screwed since you have to pay back what you owe.

 

[cohoman]

Re: My NEXT Program Cost Analysis

What i figured is if you factor in upgrade fees and upfront cost up front, it could cost the same OR even less using the NEXT program plus you can upgrade early, 18mo vs 24mo. for example for 3 smartphones staying on the 2yr contract and 6gb plan:

$36 upgrade fee x 3 = $108
new $100 subsidy iphone 5c x 3 = $300
= $408
divided into 24 months adds $17/mo.
Add that to the rate of $200/mo (6gb plan and 3 SM) and you get $217/mo

With NEXT for the same iPhones:
$145 10gb plus 3 lines
$63 for 3 iphone 5c (NEXT 18)
=$208/mo

Say you want 3 GS4s:
$145
$73.86 (NEXT 18)
= $218/mo

but if you lose the phone you're screwed since you have to pay back what you owe.

What you did is similar to what I did with my analysis, but I didn't include activation fees, phone trade in cost, etc. In the end, I determined that if you upgrade early the NEXT plan will save you money, but if you keep your subsidized phones for the full 2-yr term you it seems to be about the same.

 

[redrover69]

Re: My NEXT Program Cost Analysis

But does it pay to stay on your current plan? or when the time comes lay out the $ monthly for the next plan? If you have 5 lines it becomes COSTLY.

 

[erwaso]

Re: My NEXT Program Cost Analysis

But does it pay to stay on your current plan? or when the time comes lay out the $ monthly for the next plan? If you have 5 lines it becomes COSTLY.

You're gonna have to sit and do the math for your plan specifically. For me the difference is $5-10 per month and worth it to get new phones every 18 months instead of 24

 

[redrover69]

Re: My NEXT Program Cost Analysis

Well the phone cost the same if you buy it out right.. ATT Next is 0% financing.

no prepayment penalty. So once you pay for the phone 100% its yours to keep.

 

[erwaso]

Re: My NEXT Program Cost Analysis

Well the phone cost the same if you buy it out right.. ATT Next is 0% financing.

no prepayment penalty. So once you pay for the phone 100% its yours to keep.

Yup, but ive found Swappa to be cheaper if youre going to buy outright

you also might want to check on that no prepayment penalty, i was told by CS that you cant pay over time using NEXT and then 6 months into it pay off the phone completely. Any large payments go towards your monthly bill as a whole, not just the phone you got through NEXT.

 

[redrover69]

Re: My NEXT Program Cost Analysis

I got a phone of next. You can pre pay no penalty. If you make a large payment best to go into the store and do it that way.

Posted via Android Central App

 

[erwaso]

Re: My NEXT Program Cost Analysis

I got a phone of next. You can pre pay no penalty. If you make a large payment best to go into the store and do it that way.

Posted via Android Central App

Really? I was told I couldn't even put money down to lower the NEXT payment nor shorten the 20mo or 26mo payment options.

 

[cgardnervt]

Re: My NEXT Program Cost Analysis

Really? I was told I couldn't even put money down to lower the NEXT payment nor shorten the 20mo or 26mo payment options.

Yes you can. It was changed. It's also been confirmed by my local Corp store.

Sent From My Nexus 7

 

[erwaso]

Re: My NEXT Program Cost Analysis

Yes you can. It was changed. It's also been confirmed by my local Corp store.

Sent From My Nexus 7

Good to know. Sad to know that some reps are still clueless or skip out on training lol

 

[redrover69]

Re: My NEXT Program Cost Analysis

OK so heres what I came up with:

I have 5 phones I have mobile share 10gb.

My bill before tax is: $270 per month.
120 for the plan and $30/phone.

IF I go to next my lines are all in. I have 4 in contract 1 not in contract. ATT will change them all to NEXT so my bill will be

100 for 10gb and $15/phone. $175/month

So Current plan with buying lets say 5 iphone5s at 200 would cost me over 24 months: $7480

If I go with next and dont ever get another phone my cost is $4200...HUGE savings right???

Now the kicker...IF I want new phones: (assuming I want 5 iphone 5s)
Keeping the current plan would CHANGE from $30/month per phone to $40/month...so over 24 months $7680 + $1000 (for 5 phones)=$8680

Going to next:
I would get 5 phones $32.50/month over 20 months=$3250
$100 per month service over 24 months=$2400
$15 per month per phone for use of service over 24 months=$1800
Totalling $7450 over 24 months

SO all of this is gross of taxes. So on top of that I would save on taxes as well. It looks like over a 24 month period with 5 lines I would save $30.00 over what I am paying now.
If I KEEP 2year contracted phones Im paying $1230 more.

Someone correct me if Im wrong...but if I never get a new phone Im saving roughly $95.00 per month gross of tax...until I need new phones...

HMMMM

 

[erwaso]

Re: My NEXT Program Cost Analysis

You can switch to the mobile share value plan and turn your 30/mo phones into 15/mo now since you are already on the 10gb plan.

Instant savings now without moving to NEXT.

 

[redrover69]

So what happens when my contracts are up???

Posted via Android Central App

 

[erwaso]

So what happens when my contracts are up???

Posted via Android Central App

Nothing. Price stays at $100 for 10gb and $15 per smartphone. Or you can use the 2yr upgrade subsidized price for phones but your monthly goes to $40/mo for that phone. Otherwise you are no longer on contract

 

[redrover69]

Ok

I went for the switch...figured Ill save 95 a month until we need phones. Then the bill will gradually rise until all 5 lines are with new phones. Thanks to everyone

 

[erwaso]

Congrats! Always nice saving money

 

[redrover69]

LOL well I was seeing a short term savings I wanted to see what the school of thought was over the long run...turns out its about a wash...so may as well save as much as possible now.