Why do people like 2 yr contracts?

[Ed Briggs]

Do people realize they are paying WAY more than the phone is worth doing this? Ever hear of an unlocked phone and pay $40 (or less) a month? And btw, I expect to hear from the people who are "grandfathered" into an unlimited plan, but they don't use anything near what they think they will. They just don't want to lose it, "just in case".

I can't believe people still fall for the BS major carriers tell them. I know a guy that had a flip phone and used no data but still paid over $100 a month. Sure, it's his fault for not researching, but they will rape anyone without telling them they are overpaying.

I gave up the game 2 yrs ago and feel sorry for those that still do. I do month to month and pay $35 with 2.5gb data, unlimited calls and texts. Wifi is everywhere, there's no reason to need more unless you're addicted to media. In that case, get help.

 

[anon(5719825)]

Not everyone can afford to pay for a phone upfront. I couldn't until this year.

As for paying for a plan, I have T-Mobiles unlimited everything. Why? Because I use about 25-50GB per month and average about 1500 minutes per month and thousands of texts. Can't get that much data on a $40 or less plan and I have no contract. I bought my phones through T-Mobile outright.

And please don't tell anyone how to use their data that they pay for.

 

[Gunny94]

I'm from Portugal, but here u need to pay up 75% of the phone price + the monthly contract of 30$ or something.

Either way, I never bought contract.

But now I use my company's phone with unlimited data/calls/texts, and i got the Note 4 for 400$.

 

[sting7k]

For me if I switched to AT&T's no contract upgrade plan it would cost $65 more over 2 years than staying on the standard contract and upgrade plan. This is because of how the discount I have through work is applied to the price.

Everyone's situation is different.

 

[Geodude074]

I bought a Moto G for $150 upfront, am paying $10 a month for my phone plan. Will never go back.

Enjoy being robbed!

 

[gone down south]

I'm on Verizon and not planning to switch any time soon, so might as well get a phone for a fraction of it's cost up front. BYOD isn't going to reduce my monthly cost, so there is no resin l reason to shell out the full phone cost up front.

 

[TvTechGuru]

Do people realize they are paying WAY more than the phone is worth doing this? Ever hear of an unlocked phone and pay $40 (or less) a month? And btw, I expect to hear from the people who are "grandfathered" into an unlimited plan, but they don't use anything near what they think they will. They just don't want to lose it, "just in case".

I can't believe people still fall for the BS major carriers tell them. I know a guy that had a flip phone and used no data but still paid over $100 a month. Sure, it's his fault for not researching, but they will rape anyone without telling them they are overpaying.

I gave up the game 2 yrs ago and feel sorry for those that still do. I do month to month and pay $35 with 2.5gb data, unlimited calls and texts. Wifi is everywhere, there's no reason to need more unless you're addicted to media. In that case, get help.

Sorry but I think you have it backwards. A 2-year contract is actually the cheaper way when buying a phone. Sure you're locked in for 24 months, but... These new programs from all the providers, Verizon's Edge, AT&T's Next, T-Mobile's Jump are all scams and a rip-off! Everyone that is jumping on board with them isn't reading the fine print. You're paying full price for the phone!! Sure you aren't locked in to a contract, but you still have to pay off that phone at full price. Most of the time it's $600 or more! You can't get a new phone or leave without paying it off. Plus the monthly plan costs are a lot more for these programs.

I've been out of contract for 2 years now but I'd rather sign a new 2-year contract and get a nice smartphone for only $150 or $200 and pay less for the monthly plan.

 

[Bosgarage57]

I'm grandfathered in on vzw, use about 70 gigs a month. I use my phone for hotspot at home to run netflix, hulu, whatever I download. Thats because out in the boonies I cant get high speed internet but do get 4g. Everyones situation is different.

I too understand trying to help the uninformed people, like my uncle or has a flip phone, and pays $60 a month. I got him switched to page plus and now he pays $12.

Everyones going to have their own opinion, as long as people do what they need, whats it matter to anyone else.

 

[StanleyMan]

Sorry but I think you have it backwards. A 2-year contract is actually the cheaper way when buying a phone. Sure you're locked in for 24 months, but... These new programs from all the providers, Verizon's Edge, AT&T's Next, T-Mobile's Jump are all scams and a rip-off! Everyone that is jumping on board with them isn't reading the fine print. You're paying full price for the phone!! Sure you aren't locked in to a contract, but you still have to pay off that phone at full price. Most of the time it's $600 or more! You can't get a new phone or leave without paying it off. Plus the monthly plan costs are a lot more for these programs.

I've been out of contract for 2 years now but I'd rather sign a new 2-year contract and get a nice smartphone for only $150 or $200 and pay less for the monthly plan.

The edge plan was cheaper per month for me than Verizon's other plans. Everyone's situation is different.

 

[Raptor007]

First off, no one likes 2 year contracts, but no one likes to pay $500-1000 for a phone anyways. Plus regardless of whether or not you pay for the phone outright or over a 2 year term or some payment plan you are still PAYING the carrier subsidy for access. Unless you live in the EU or UK where your cell service is cheap and you pay for the phone outright then you live in the US where we get raked over the coals regularly.

I always opted for 1 year contracts but Verizon took that away and so the others followed.

 

[mumfoau]

I'm on Verizon and not planning to switch any time soon, so might as well get a phone for a fraction of it's cost up front. BYOD isn't going to reduce my monthly cost, so there is no resin l reason to shell out the full phone cost up front.

This exactly!

 

[Bodzm]

In the UK, a 2 year contract works out about the same as buying the phone outright and putting in your own SIM. The difference is neglible - unless you don't need many minutes/texts or data. I tend to go for 4gb+ data and unlimited calls/minutes and buying on contract works out slightly cheaper and it allows to me to the spread the cost.

 

[Almeuit]

Sorry but I think you have it backwards. A 2-year contract is actually the cheaper way when buying a phone. Sure you're locked in for 24 months, but... These new programs from all the providers, Verizon's Edge, AT&T's Next, T-Mobile's Jump are all scams and a rip-off! Everyone that is jumping on board with them isn't reading the fine print. You're paying full price for the phone!! Sure you aren't locked in to a contract, but you still have to pay off that phone at full price. Most of the time it's $600 or more! You can't get a new phone or leave without paying it off. Plus the monthly plan costs are a lot more for these programs.

Actually if you look at a lot of the math it is cheaper. It's been discussed a bunch in our carrier Forums and a lot of the time the payments for the phone come out cheaper over 2 years versus a contract.

 

[Almeuit]

I'm on Verizon and not planning to switch any time soon, so might as well get a phone for a fraction of it's cost up front. BYOD isn't going to reduce my monthly cost, so there is no resin l reason to shell out the full phone cost up front.

Are you on a old unlimited plan? Doesn't sound like it if you're doing contract.

If you use an approved Verizon device (such as if you buy one upfront) you actually do get a discount on your plan. They'll apply the "edge" line access to your plan versus the contract rate of 40 bucks a month.

 

[JnEricsonx]

Got my first smartphone, the HTC Thunderbolt, back in May 2011, before Verizon killed UDPs. Hell, the phone is still sitting in front of me right now. I'm on a family plan, got my unlimited, unlimited texts, and 3 people in my family share about 800 minutes, and we NEVER go anywhere near using that up. I spend about 60 a month for my share of the family plan. I also use 8-10 gigs a month, and thats because on reflex I still turn off the 4g when not using it for battery consumption, etc. I'd only give up UDP if Verizon gave me like 12 odd gigs for say a 30-40 a month data plan. And yeah, the edge plans and the like still wind up with you paying the full cost of the phone over time. And I'm just curious as to why people wanna change their phone literally every 6 months to a year.

 

[gone down south]

Are you on a old unlimited plan? Doesn't sound like it if you're doing contract.

If you use an approved Verizon device (such as if you buy one upfront) you actually do get a discount on your plan. They'll apply the "edge" line access to your plan versus the contract rate of 40 bucks a month.

I'm on the $60 2gb single line plan, don't think there are any discounts available unfortunately.

 

[Almeuit]

I'm on the $60 2gb single line plan, don't think there are any discounts available unfortunately.

Ah single line plans I don't think qualify.. so in your case that would make sense.

 

[TvTechGuru]

Actually if you look at a lot of the math it is cheaper. It's been discussed a bunch in our carrier Forums and a lot of the time the payments for the phone come out cheaper over 2 years versus a contract.

I have compared 2 scenario's...
1. Verizon Edge - Choose Galaxy S6 ($25/month), choose Single Line Plan 2GB ($60/month) = $85 per month before taxes, and I pay $600 for the phone. Total over 24 months = $2,040 before monthly taxes.

2. 2 year contract - Choose Galaxy S6 ($199 up front), choose Single Line Plan 2GB ($75) = $75 per month before taxes. Total over 24 months = $1,800 before monthly taxes and phone paid for up front and cheaper.'

Just some food for thought.

 

[Almeuit]

I have compared 2 scenario's...
1. Verizon Edge - Choose Galaxy S6 ($25/month), choose Single Line Plan 2GB ($60/month) = $85 per month before taxes, and I pay $600 for the phone. Total over 24 months = $2,040 before monthly taxes.

2. 2 year contract - Choose Galaxy S6 ($199 up front), choose Single Line Plan 2GB ($75) = $75 per month before taxes. Total over 24 months = $1,800 before monthly taxes and phone paid for up front and cheaper.'

Just some food for thought.

You didn't add the +$200 in your #2 option. You only did 75*24 ($1800) -- Once you add +200 = $2,000 (or technically $199 so $1,999) so only a $39-40 difference.

For the single line plan yes this makes some sense... but IIRC when we did some math in the carrier forums anything higher (a.k.a bigger data plans than the single line plan or having more lines) it costs more.

 

[Kylbit]

I switched to Tmobile about one year ago after leaving Verizon's 2 year plan/scam.

Carriers like to lock users in. It helps their profits remain steady. Imagine if everyone could switch within a week. Companies could fall because of that.