AT&T NEXT plan a rip-off?

pcguys

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I'm sorry I can't edit the subject. I feel bad I used such a word.

[EDITED to essentially remove my ill-formed question]

I answered my question by analyzing the NEXT vs. Contract plans (with screen shots below, 2 posts down:

Mike
 
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Almeuit

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Re: ATT NEXT plan a ripp-off?

Next means you buy the phone over time.. If you turn it in before you pay it off to get a new device then yes you're correct that you have no device..

However

If you pay the device off in full on next and then decide to upgrade you keep the phone (since you paid it off) and can get another starting the whole next process over again.

Basically if you don't pay the phone off in full and want to switch you have to give it up.. Otherwise it's yours once paid.

Sent from my T-Mobile Note 3 using AC Forums.
 

pcguys

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Re: ATT NEXT plan a ripp-off?

It wasn't until I crunched the numbers that I realized that the Next 12 turned in after 12 months is a simple lease (paying only for the depreciation).

I did my analysis for a Note 3 ATT NEXT vs. 2 year contract price with ATT Value Share 10 gig plan. I did not compare it to an iphone like my original question because I wanted apples to apples (no pun intended).

It works out to be the same $40/month if I do that, or buy it myself, and sell it privately after 12 months. For some reason, I didn't see that when I asked my question.

It drops to $29/month if I keep it 20 months.

Interestingly, a contract phone where you pay an extra $25/month in increased line charges so you can buy the phone for $299 comes out to be $30/month.

So, the basic choice is $40/month for a 1 year lease or $30/month for a 20 or 24 month purchase.

The value of $288 after 12 months and $200 after 20 months is strictly a guess. If I'm very off, it will of course affect the payment.

Here's my Excel handy-work for 4 scenarios:

See attached

att-1.jpg
att-2.jpg
att-3.jpg
att-4e.jpg
 
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pcguys

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Re: ATT NEXT plan a ripp-off?

The real eye-opener is that the traditional contracted (24 month) deal = simply buying and paying it off over 20 months. Aside from being shorter, you have the flexibility to sell it sooner if you want to.
 

cohoman

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Re: ATT NEXT plan a ripp-off?

I did a similar analysis for my situation (2 smartphones and an iPad on the new 10 GB plan), and since my wife and I usually upgrade our phones at the 12-18 month mark (paying ETFs), going with the NEXT setup seemed reasonable.
 

pcguys

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Re: ATT NEXT plan a ripp-off?

I'm going to do a chart and post it here but one way to look at it is: you pay $36/month (for a note 3) for the first 12 months. If you keep it 8 more months, months 13-20 you are basically paying about $8/month (if the end-value of the phone of lets say $225/8=$28. $36-$28=8). Then the whole process begins all over again!
 

rox b1

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I know that AT and T will do nothing about this as they don't care and are too big to care. I have been with ATT / cingular since 1995. Just google the word ATT ripoff and see all that pops up.

I am eligible for an upgrade for 3 family plan phones. I chose the 2 year contract and was shown an absolutely free phone (note 4) online. Then I was told that by upgrading I would lose my $75.00 total credit per month. So in 2 years using the next plan, I would lose a total of 1800.00 or 600.00 for each FREE phone. They want everyone to be on the next plan as this is how they make money but what they say is that some people don't like contracts. (I do)

I was told by sales online that if I pay 1958.00 and buy the phones outright I would keep my credit of 75.00 per month (this is paying 150.00 more???? than with the next plan).

This system is not much different than all the money being made by car dealers with 7 year car loans.

AT and T does not learn its lesson well. They had roll over, took it away, then years later brought it back. They had unlimited data, made us buy blocks of data, and now are giving huge date packages for little money. So eventually AT and T will go back to giving a choice of contract or no contract which it does not have at the moment essentially.

Are Americans really this stupid? I think so if they fall for the next plan without doing homework..:mad:
 

pcguys

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Actually, it's the contract deals which are terrible because you pay $25 more per month for 24 months= +$600 on top of whatever you pay up front.

The next plans are better because you pay $15/month instead of $40 /month (assuming you have a 6 gig or more plan)
 

mike568

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Re: AT&T NEXT plan a rip-off?

Next plans are horrible for 1 line accounts. I have 450 minutes and unlimited data with 1500 text messages for $69.xx a month after my employers 23% off discount that covers the minutes and data usuage. I normally get the upgrade fee waived through Premier CSR. I normally use atleast 6GB of data. I have another phone setup to create a hotspot once I put in my sim card.

Sent from my SAMSUNG-SM-G900A using Tapatalk
 
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pcguys

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You are right: it only makes sense if the line cost drops from $40/line to $15/line (which last time I checked on ATT only happened with a 6 gig shared data plan)
 

thejesse

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You are correct that NEXT makes no financial sense of you are trading in your phone. It's also questionable if you use it to buy the top tier phones. However, I believe it offers real value when used to purchase more modestly priced phones. Especially if you take into account the value of interest free financing.
The real value of reducing your monthly service cost is buying your phone from somewhere other than AT&T. Buying an unlocked phone like the Moto X, Idol 3, OnePlus One, or Zenfone 2 is the way to really save money on AT&T. You can also buy very lightly used phones from sites like seappa.com, often saving a couple hundred vs. New retail.
I'm curious how you came to your one year value of a used note. $288 seems low. I find it unusual for the value of a used phone to decrease only $88 between months 12 and 24.

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