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Muddied Waters
By Wererat on 7/16/2013 8:56:04 AM , Rating: 5
T-Mobile's plan takes the subsidized cost out of the monthly fee; that's why their 'uncarrier' approach is interesting. Also, T-Mobile's "Jump" includes device insurance in its $10/month fee (current T-Mob subscribers pay $12/month for insurance alone right now!)

In the AT&T plan, insurance is extra. I haven't perused the Verizon plan closely enough to say. However, both AT&T and Verizon's plans keep the same monthly rate. AT&T and Verizon give you:
- Subsidized rate, 24 month contract (existing);
- Purchase phone outright, no contract pre-paid (existing); or
- Installment plan on phone, still bound by 24 month service contract; waived installation fees. (Edge/Next)

T-Mobile offers:
- Purchase phone outright (and no contract) (existing);
- Installment plan (and no contract) (existing); or
- Installment plan (and no contract) plus insurance/jump fee allows frequent trade-in of phone (Jump).

IMO, these Verizon and AT&T moves are just an attempt to muddy the waters after T-Mobile's move. They're not really the same at all.

They're not *bad* per se -- similar to used game tradeins at gamestores. They're essentially offering to buy your phone back from you at a depreciated rate (in AT&T's case, 40%) after a year. The foolish thing to do in AT&T's plan would be to pay all 20 payments, it seems; then you've foregone the subsidized rate, paid for the whole phone, and are still paying the monthly costs that subsidized-rate customers pay.

RE: Muddied Waters
By nafhan on 7/16/2013 9:18:50 AM , Rating: 2
Nice analysis!
It sounds like you're basically saying that you end up with roughly the same dollar amount subsidized, it's just spread over two phones instead of one - correct? I'd call this a win for the user (more choices) except that VZ and ATT just took away the early (20 month) upgrade about 6 months ago...

RE: Muddied Waters

RE: Muddied Waters
RE: Muddied Waters
By Wererat on 7/16/2013 11:29:30 AM , Rating: 2
I've made a small error. In the new "Next" plan, you may cancel service at any time, but you must pay the remaining balance on the phone. This is in lieu of the traditional early termination fee.


should be

- Installment plan on phone; must pay remainder of phone if cancelling; waived installation fees. (Next)

Assuming a $660 phone (say, a Nokia 1020):
- Existing: Pay $300 up front, plus $36 activation fee, subject to $325 ETF. At month 12, may not upgrade in-plan; subject to $205 ETF (325-(12*10)). If leaving AT&T: $541 paid in addition to service costs. (Presumably, less recoupment if selling phone).

- Next: Pay $0 up front, $0 activation fee, plus $33/month. At month 12, may upgrade having paid $396. If leaving AT&T: pay balance for total of $660.

From this I figure: a) they've worked it so you can't get a cheaper phone by signing up and cancelling no matter what; b) if you're dying to upgrade at 12 months, you have to figure out if the up-front costs + ETF - selling your phone is more than the Next plan's cost (in my example, you'd need to net $145 out of a year-old used 1020 to break even); and c) if you expect to switch carriers frequently, or only upgrade every two years, Next is not a good deal. It only helps you if you do expect to want a new phone and you intend to stick with AT&T.

