AT&T to discontinue subsidizing phones with contract this Friday Jan 8th

[robinb]

Here's a head's up on changes with AT&T phone pricing.

According to this report: http://arstechnica.com/business/2016/01/att-getting-rid-of-phone-contracts-and-subsidies-this-week/ , AT&T will disconsinue subsidizing phone purchases with a contract in favor of charging full price for the phone with monthly payments. This will cover ALL PHONES with AT&T, not just smart phones.

For instance, I can renew my contract for 2 years today and get an iPhone 6s for $200. If I wait until Friday that same phone will be $650.

Ugh. I guess this will push me to make a decision if I want to stay with AT&T or if I want to jump ship to another provider by Thursday. We get a discount with AT&T on the phone service (which is no longer offered) through my DH's employer but AT&T also just increased the price of my "unlimited" data by $5, so I'm up to $69 per month. I'm just OCD enough about wanting to get the BEST price for something I know that I will have hours of work ahead of me playing around with excel spreadsheets and normalizing the price over 2 years. Double ugh.

 

[havaneselover]

Here's a head's up on changes with AT&T phone pricing.

According to this report: http://arstechnica.com/business/2016/01/att-getting-rid-of-phone-contracts-and-subsidies-this-week/ , AT&T will disconsinue subsidizing phone purchases with a contract in favor of charging full price for the phone with monthly payments. This will cover ALL PHONES with AT&T, not just smart phones.

For instance, I can renew my contract for 2 years today and get an iPhone 6s for $200. If I wait until Friday that same phone will be $650.

Ugh. I guess this will push me to make a decision if I want to stay with AT&T or if I want to jump ship to another provider by Thursday. We get a discount with AT&T on the phone service (which is no longer offered) through my DH's employer but AT&T also just increased the price of my "unlimited" data by $5, so I'm up to $69 per month. I'm just OCD enough about wanting to get the BEST price for something I know that I will have hours of work ahead of me playing around with excel spreadsheets and normalizing the price over 2 years. Double ugh.

I do straight talk (paid $448/year) but only have 5 gb of data/month. It's basically AT&T service. My plan is to buy a one-year old iPhone every three years. Total monthly cost is under $50.

 

[robinb]

Thanks!

I was with Consumer Cellular for a long time for my DD's phone and it's on the AT&T service. It's $40 for unlimited talk and text plus 4GB data. I also have to analyize my data usage so I know which plan would work the best for me. I have been on unlimited data for over 6 years and I really have not had to worry about my use. Triple ugh.

I was planning to look here: https://www.whistleout.com/CellPhones to compare plans.

 

[Gumbo4x4]

You can still buy that phone through AT&T on a payment plan. You're actually a lot better off with this new plan, especially if you keep
Phones longer than 2 years. We did this with AT&T about a year ago & knocked over $100 a month off our bill (family share with 5 lines).

 

[Ngwira]

Here's a head's up on changes with AT&T phone pricing.

According to this report: http://arstechnica.com/business/2016/01/att-getting-rid-of-phone-contracts-and-subsidies-this-week/ , AT&T will disconsinue subsidizing phone purchases with a contract in favor of charging full price for the phone with monthly payments. This will cover ALL PHONES with AT&T, not just smart phones.

For instance, I can renew my contract for 2 years today and get an iPhone 6s for $200. If I wait until Friday that same phone will be $650.

Ugh. I guess this will push me to make a decision if I want to stay with AT&T or if I want to jump ship to another provider by Thursday. We get a discount with AT&T on the phone service (which is no longer offered) through my DH's employer but AT&T also just increased the price of my "unlimited" data by $5, so I'm up to $69 per month. I'm just OCD enough about wanting to get the BEST price for something I know that I will have hours of work ahead of me playing around with excel spreadsheets and normalizing the price over 2 years. Double ugh.

Former AT and T customer who is also with straight talk. We pay $45.00 a month, however we were lucky to get in on the deal straight talk ran where it was buy a plan, get one free. so 1 year of service was cut in half pricewise. I have an android samsung galaxy and dh has the iphone.

 

[JediBonas]

Verizon Wireless is doing the same. You get a credit on your statement but the cost of the phone rolls into your monthly bill. My friend just got a new phone and with the credit it's almost the same as our bill (the full cost of her iPhone 6 is rolled into her contract with a credit, we got free iPhone 6 but no statement credit).

 

[loves to dive]

Verizon Wireless is doing the same. You get a credit on your statement but the cost of the phone rolls into your monthly bill. My friend just got a new phone and with the credit it's almost the same as our bill (the full cost of her iPhone 6 is rolled into her contract with a credit, we got free iPhone 6 but no statement credit).

My boss just did this with a new IPhone and Verizon. They told him they were no longer subsidizing but then there was a discount on the phone and a lower monthly plan and if you put the plan on your bill and signed a two year contract and handed over your first born child and swore allegiance to flying pigs, it all worked out. He has no kids so he did everything and his monthly bill (which the company pays) is less than it was before he swore allegiance to flying pigs.

 

[tvguy]

The thing I don't get, is they say it is in response to customer demand for no contracts. After talking to more than one credible marketing person familiar with the industry, that is apparently true. The are actually people who want a new phone every 6 months or so.
Not me for sure. Which explains why I had my first cell phone 14 years and only got rid of it because they were switching from analog to digital.

 

[pryncess527]

If it's anything like the Verizon change, nothing is really changing with the bottom line for how much you pay for the phone.

Verizon subsidized your phone if you signed a contract, but the cost of the phone was in the contract. When the contract ended, you could contact them and get a "credit" that accounted for the fact that you'd paid off your phone. They were never really giving you $$ off a phone, just disguising how you paid for it. People who did not always get a new phone when eligible also did not realize they were eligible for the discount, so paid higher prices than they needed too. Being upfront with the cost of the phone instead of hiding it in false subsidies is much better, IMHO.

 

[Kenny1113]

Here's a head's up on changes with AT&T phone pricing.

According to this report: http://arstechnica.com/business/2016/01/att-getting-rid-of-phone-contracts-and-subsidies-this-week/ , AT&T will disconsinue subsidizing phone purchases with a contract in favor of charging full price for the phone with monthly payments. This will cover ALL PHONES with AT&T, not just smart phones.

For instance, I can renew my contract for 2 years today and get an iPhone 6s for $200. If I wait until Friday that same phone will be $650.

Ugh. I guess this will push me to make a decision if I want to stay with AT&T or if I want to jump ship to another provider by Thursday. We get a discount with AT&T on the phone service (which is no longer offered) through my DH's employer but AT&T also just increased the price of my "unlimited" data by $5, so I'm up to $69 per month. I'm just OCD enough about wanting to get the BEST price for something I know that I will have hours of work ahead of me playing around with excel spreadsheets and normalizing the price over 2 years. Double ugh.

My Local AT&T already started this, when I got my new phone last year-adding a contract for a lower price on the phone was not an option. My options were -pay full price of phone, do att program with installments, join next program.

 

[puffkin]

We just went through this with AT&T this fall when getting new phones for my parents. The 2 year contract with "FREE" phones for my parents was much more expensive than the NEXT plan we ended up doing and them paying for their phones monthly over a 2 year period. Even with the monthly phone payments rolled into the bill, it still is cheaper and they get more data than they would have gotten on the 2 year contract plan.

I don't think much is changing except semantics. And as with most changes, some customers will benefit and some will not.

 

[1tripandIfell]

DH and I both have the unlimited data, when we added DS it was no longer available so he only has 3GBs. The problem is in order to go to the Next plan you have to give up your unlimited, if I am remembering correctly. We thought about going to a shared plan but why give up unlimited? Of course now they have upped the price 5.00 a month.

 

[puffkin]

DH and I both have the unlimited data, when we added DS it was no longer available so he only has 3GBs. The problem is in order to go to the Next plan you have to give up your unlimited, if I am remembering correctly. We thought about going to a shared plan but why give up unlimited? Of course now they have upped the price 5.00 a month.

How much data do the 3 of you use a month? For example, I was on a very old unlimited iphone data plan. We didn't have texting (just pay as you go). He had a very tiny iphone data plan. All in we paid about $112/month after my corporate discount but beyond my unlimited we had very little. I was out of contract on my 5s and his 5c purchased 2 years ago.

I ended up going in with my parents on a family share plan and dropping my husband from the plan. He also has a work phone and NEVER used his personal phone. We ended up with 15GB of data a month with roll over and unlimited talk/text. We both have wifi so don't use tons of data at home. We pay $100 for the data, and $15/phone (x3 phones). My parents got basic HTC smart phones and pay for them monthly which adds another $16/month. At this time, I chose not to upgrade my iphone. My monthly bill is $155/month with all fees added in. It's plenty of data for the 3 of us plus now I have unlimited call and text. Even if/when I do decide to upgrade my iphone or if we would add my DH back onto our plan, I am still coming out ahead of staying on our old unlimited plan. So for me, it made sense to drop unlimited data.

 

[SuzanneSLO]

Here's a head's up on changes with AT&T phone pricing.

According to this report: http://arstechnica.com/business/2016/01/att-getting-rid-of-phone-contracts-and-subsidies-this-week/ , AT&T will disconsinue subsidizing phone purchases with a contract in favor of charging full price for the phone with monthly payments. This will cover ALL PHONES with AT&T, not just smart phones.

For instance, I can renew my contract for 2 years today and get an iPhone 6s for $200. If I wait until Friday that same phone will be $650.

Ugh. I guess this will push me to make a decision if I want to stay with AT&T or if I want to jump ship to another provider by Thursday. We get a discount with AT&T on the phone service (which is no longer offered) through my DH's employer but AT&T also just increased the price of my "unlimited" data by $5, so I'm up to $69 per month. I'm just OCD enough about wanting to get the BEST price for something I know that I will have hours of work ahead of me playing around with excel spreadsheets and normalizing the price over 2 years. Double ugh.

This was posted on this board last week and I spent Wednesday night working my spreadsheets. We decided to upgrade my husband's phone, even though he only got a $200 discount, not a $450 discount. We both have unlimited talk and data and also have a dumb phone. For the 3 phones, we pay $140 per month. Currently an ATT plan with unlimited talk and 15GB of data would be $145. After the price increase on the unlimited data plan, our cost will be $150. (All prices before discounts and taxes).

With the price increase on the unlimited data plan starting in February, ATT has agreed that customers have 60 days after the new price appears on your bill to cancel the unlimited plan and ATT will waive any early termination fee. Because of that agreement, I felt like it made sense to get the discounted phones with a new 2 year contract, then reevaluate in March or April whether we should cancel service without an early termination fee and keep our brand new discounted phones.

Best of luck in your decision. -- Suzanne

 

[1tripandIfell]

How much data do the 3 of you use a month?

Well...I am not sure how much I use but I know it is 5+, my DH uses under 5GB DH compared the plans and if we switched it would have been pretty much the same monthly but with us no longer having unlimited. DH is a Geek and doesn't want to give up that unlimited until they force us to.

 

[ajwolfe]

My Local AT&T already started this, when I got my new phone last year-adding a contract for a lower price on the phone was not an option. My options were -pay full price of phone, do att program with installments, join next program.

This...Our local ATT stores have not offered a contract renewal plan in quite some time.

 

[3boymthr]

My Local AT&T already started this, when I got my new phone last year-adding a contract for a lower price on the phone was not an option. My options were -pay full price of phone, do att program with installments, join next program.

This...Our local ATT stores have not offered a contract renewal plan in quite some time.

When we went last year to get new phones (in march) all stores in the area did not offer contracts. Not AT&T not Verizon. Neither did Best Buy nor Target. We could buy the phone full price or pay it out over a period of months - I was bummed because our bill went up $150/mo but we needed new phones because mine & DS#1's phones wouldn't hold a charge and DH's phone wouldn't let him update the software and DS#3 needed his first phone (yes, needed, because I needed to be able to get a hold of him when he went away on weekend trips). After we got our phones I would see people posting about their fabulous deals on a new phone with contract and was like wait, what? Because at every store we went to this was not an option. I figured I must have heard wrong at the stores, and been taken advantage of by the employees. But maybe not, now I'm wondering if the whole doing away with contracts that was actually rolled out gradually in various parts of the country and we were part of the first wave.

 

[MillauFr]

The phone companies never subsidized phones. You paid plenty for all of those "free" phones.

 

[robinb]

I would have jumped earlier, but 1) I get a 23% discount on my plan, 2) I have unlimited data grandfathered in, 3) the NEXT plan actually costs more and 4) AT&T's customer service had been outstanding.

As for the subsidies, $450 is a lot even over 24 months. It's nearly $20 per month which brought my monthly costs down to $47 per month. This is the first time in 6 years I didn't upgrade within the first week of the new iPhone being realeased once I was eligible for an upgrade every other September so I usually don't pay for my contract without using the subsidy.

My DD has an iPhone with Boost Mobile and her plan is just $35 per month but she had to buy the phone. That's nearly half what I pay and I have been mulling over changing providers for a while which is why I didn't lock myself into AT&T back in September. I don't have any more time left to decide.

 

[Malibustyle23]

I do straight talk (paid $448/year) but only have 5 gb of data/month. It's basically AT&T service. My plan is to buy a one-year old iPhone every three years. Total monthly cost is under $50.

Not sure if it's regional but my straight talk plan is unlimited data. The first 5 GB is at a higher speed than the rest though. I usually have mine to pick up wifi at home, work, etc so it hasn't been an issue with speed thus far.