Home  ›  News  ›

AT&T's Newest Next Plan Asks for 30% Downpayment

Article Comments  

all discussions

show all 5 replies

Ok who's jumping on next??

arox413

Jun 2, 2015, 4:13 AM
It was only a matter of time before this became a requirement to some extent. Far too many mobile customers have no shot at Next, Edge, or whatever other name companies have for it due to bad credit. With all the major carriers trying to get away from the perceived "bad" 2 year contract deal all together, it's starting to hit their bottom line and they need more people on board. If you really crunch the numbers you aren't really saving all that much either way.
...
aeternavi

Jun 2, 2015, 9:36 AM
You couldn't be farther from the truth.

Let's look at a typical two year contract. First and foremost, when you buy (as an example) the typical phone for 99¢, do you really think that it cost only a dollar to make? That is where the two year contract came in, to make up the subsidized price. Here's the simple math on the new LG Escape 2-

Price up front- 99¢+tax (in my state it's 8%)
Activation/upgrade fee- $40
Because you are going under contract, you lose the discount on the mobile share plan (this is how they make up the difference between the 99¢ and retail price. Keep in mind carriers don't make money on retail pricing) which on the typical 10GB plans is $25/month.
If you add this up, that is ~$641

Next program up front is...
(continues)
...
bjerrell

Jun 2, 2015, 12:07 PM
On AT&T, if you have less than 10 GB (not including the promotional 7GB plan they nt longer offer), then you only get a $15 discount for doing the Next program.

-15*20= -300 savings
-15*24= -360 savings
-15*30= -450 savings

Therefore depending on which installment plan you choose, in order to save money, the phone's total saving must be more than the upfront cost of the 2yr contract price AND the total savings discount for that specific program (upgrade fees also, unless you call in to customer care and try to get them to remove it. Mostly successful if you have tenure).

Now the phone you chose, a very low-end entry level phone (retail value $180), is not a good standard to use. Most of the U.S. market goes for flagship phones. L...
(continues)
...
arox413

Jun 3, 2015, 1:30 AM
Thank you for the back up there.

I'm sorry but no one is making these decisions over an LG Escape. Anyone who ever entered into a 2 year contract for as a cheap a phone as that either doesn't know anything about cell phones or just isn't too bright.

All that said, there are times the new plans make sense more than a typical 2 year contract but the savings aren't always as big as some would have you believe.

And don't ever think that while they make it try to sound like they're saving you money that they aren't going to find a way to make more of their own.
...
aeternavi

Jun 3, 2015, 11:39 AM
Hence why I did the 10GB plan. I have far more people on that plan than any other. I would also like to see these "holes" you are talking about. I encourage you to pick any smart phone in the lineup and I can easily prove my point.
...
bjerrell

Jun 5, 2015, 1:45 PM
Of course you had most people on 10GB or more. So do I. In the US market, most phone plans are on a 4 line or more family plan. Much easier to sell the 10GB plan with multiple lines. Galaxy S6 Base Model. AT&T 3 GB Next Plan vs 3 GB 2yr contract. Go.
...

This forum is closed.

Please log in to report a message to the moderator.

This forum is closed.


all discussions

Subscribe to Phone Scoop News with RSS Follow @phonescoop on Threads Follow @phonescoop on Mastodon Phone Scoop on Facebook Follow on Instagram

 

Playwire

All content Copyright 2001-2024 Phone Factor, LLC. All Rights Reserved.
Content on this site may not be copied or republished without formal permission.