co.ag.2005
Well-known member
- Aug 28, 2010
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The problem for many people is that there are still major carriers out there that are unwilling to lower your monthly rates even if you're not buying subsidized. For those people who aren't getting any savings, it actually benefits them more to buy on contract subsidized and save a couple hundred dollars. The choice for them comes down to
1. Buy outright for $500 but still pay the exact same/month
2. Buy on contract subsidy for let's say, $300 and keep it for 2 years.
3. Buy outright but upgrade after 1 year instead of 2 and avoid paying a fee to upgrade earlier than 2 years.
In order to save more money you're still better off financially to make sure you sell your previous phone to offset the cost of the new one. For me personally that's not an option because my previous phone always gets handed down to a family member. Once they're through with it the resale value is next to nothing.
Which carriers? At&T, Verizon, and TMobile have cheaper per line charges if you buy phone full cost or use a phone lease program. For example, if on at&T or Verizon, being on a mobile share (family) plan, 2 year contract per line cost was $40. With a bring your own device or carrier lease program, that per line cost is only $15. Verizon's new plans are now $20 per line access fee with no options for 2 year contract /subsidized handset model.
I get that some plans are a bit cheaper if you haven't migrated to the newer mobile share plans (e.g. AT&Ts unlimited plan) but most people are on these newer data share plans because old ones haven't been offered in a while. If on a data share plan, its been proven cheaper to buy your phone outright or use a lease program (next, edge, jump, etc.) than doing the 2 year contract with $100 or $200 upfront.
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