AT&T Next Plans vs 2-year Contract

randun

Well-known member
Jan 3, 2011
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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.
 
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.
 
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.
 
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.
 
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.
 
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.
 
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.
 
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.

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