09-08-2013 11:03 AM
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  1. ninjaap's Avatar
    What is this subsidy you people keep referring too? Even if you came in with your own unlocked smartphone, you still pay the same amount as people on a 24 month contract pay for.

    • The Next plan is a great option for people who like to buy the phone off contract; pay full retail.
    • Its an interest free installment plan that is divided into 20 months.
    • You can pay it off at any time and move on to a new phone.
    • Or you can just wait 12 months and trade it in and get a new phone.
    • Zero activation fee.


    Full retail: $660 + $36 activation fee = $696
    Next plan: @$33 x 20 months + $0 activation fee = $660

    24 months contract: $300 + $36 activation fee = $336
    Next plan 12 months: @$33 x 12 months + $0 activation fee = $396

    Choose the option that meets your needs. Its only a ripoff if you plan to stay the whole 24 month contract course. For those who usually pay full retail to avoid contract or would like to be able to upgrade more often, this is a great option.
    Last edited by ninjaap; 07-30-2013 at 04:52 PM.
    07-30-2013 04:28 PM
  2. HeyCori's Avatar
    What is this subsidy you people keep referring too? Even if you came in with your own unlocked smartphone, you still pay the same amount as people on a 24 month contract pay for.
    That is what I was trying to explain in my earlier post. AT&T's monthly price is inflated to cover the cost of your subsidized phone. So say you drop $200 for a GS4 and start a standard 2-year contract, the inflated monthly plan is to help cover that other $440 that you didn't have to pay. But after X amount of months your bill never gets cheaper like with T-Mobile. You're not truly paying off the subsidy because the bill never changes. AT&T justifies the inflated cost because of the subsidy but you can never actually pay the difference. But whatever terminology you guys want to use is irrelevant to me since the price remains the same.
    07-30-2013 04:55 PM
  3. ninjaap's Avatar
    That is what I was trying to explain in my earlier post. AT&T's monthly price is inflated to cover the cost of your subsidized phone. So say you drop $200 for a GS4 and start a standard 2-year contract, the inflated monthly plan is to help cover that other $440 that you didn't have to pay. But after X amount of months your bill never gets cheaper like with T-Mobile. You're not truly paying off the subsidy because the bill never changes. AT&T justifies the inflated cost because of the subsidy but you can never actually pay the difference. But whatever terminology you guys want to use is irrelevant to me since the price remains the same.
    Then why even make that the basis of your argument? People already know that they're going to pay the same amount. There are people who have been paying full retail for phones for years, regardless of the subsidy or no subsisdy. They have their reasons. Like I said, the next plan is a great option for those (full retail) consumers, because its a flexible interest free installment plan with zero activation fee; saves them money. It doesn't affect people who buy on contract at a lower price. Why be up in arms about it (not pointing at you directly, just in general)? Just choose the option that's good for you.
    07-30-2013 05:27 PM
  4. Kebero's Avatar
    We're still assuming that ATT and VZW plans cost what they do because of some imagined "subsidy fee."
    07-30-2013 05:31 PM
  5. ninjaap's Avatar
    We're still assuming that ATT and VZW plans cost what they do because of some imagined "subsidy fee."
    I think we have to start accepting the fact the ATT and VZW subsidy fee is not measured in dollars, but in contractual months.
    07-30-2013 05:39 PM
  6. HeyCori's Avatar
    Then why even make that the basis of your argument? People already know that they're going to pay the same amount. There are people who have been paying full retail for phones for years, regardless of the subsidy or no subsisdy. They have their reasons. Like I said, the next plan is a great option for those (full retail) consumers, because its a flexible interest free installment plan with zero activation fee; saves them money. It doesn't affect people who buy on contract at a lower price. Why be up in arms about it (not pointing at you directly, just in general)? Just choose the option that's good for you.
    You're right in that I should have referred to Next as "hardware payments" instead of subsidies because that's what AT&T refers to it as. Regardless, the math is the same. The original point I made is that so many people hate AT&T because their higher monthly plans is to make up for selling you a subsidized phone, but the higher rate plan never disappears no matter how many payments you make towards this so-called subsidy. And since AT&T doesn't exist in a bubble, we see in T-Mobile (and in pretty much every carrier overseas) that having a lower monthly payment post-subsidy is possible. I don't think it's unfair that customers expect lower prices after paying off their so-called subsidized phone. The Next plan doesn't address the fact that their standard monthly prices are inflated.
    07-30-2013 06:03 PM
  7. ninjaap's Avatar
    That would be nice. But as someone who has been with ATT since before they took over cellular one in the early 90s, this has never been true and has never changed. I don't know why people expect anything different now. Even when I sold phones in the early 90s it was never in writing that there was a direct cost added to your monthly plan. It was has always been "we'll sell you the phone cheaper, but in exchange you stay on a year contract". Then about a decade later it changed to a 2 year contract. I think people just has been assuming this added monthly subsidy, because it is present in other carrier plans. But fact of the matter is, its not on ATT.
    HeyCori and Graven Pshya like this.
    07-30-2013 06:44 PM
  8. inteller's Avatar
    the Next way to rip you off....only from the dreadful partner.
    metalchick719 likes this.
    08-06-2013 10:17 PM
  9. 21stNow's Avatar
    What is this subsidy you people keep referring too? Even if you came in with your own unlocked smartphone, you still pay the same amount as people on a 24 month contract pay for.

    • The Next plan is a great option for people who like to buy the phone off contract; pay full retail.
    • Its an interest free installment plan that is divided into 20 months.
    • You can pay it off at any time and move on to a new phone.
    • Or you can just wait 12 months and trade it in and get a new phone.
    • Zero activation fee.


    Full retail: $660 + $36 activation fee = $696
    Next plan: @$33 x 20 months + $0 activation fee = $660

    24 months contract: $300 + $36 activation fee = $336
    Next plan 12 months: @$33 x 12 months + $0 activation fee = $396

    Choose the option that meets your needs. Its only a ripoff if you plan to stay the whole 24 month contract course. For those who usually pay full retail to avoid contract or would like to be able to upgrade more often, this is a great option.
    If you do this, you lose the "advantage" of having the remaining balance forgiven on the current phone before you get the new phone. This may not be a bad thing for those that like to sell their phones on the after-market but for those that don't, it would take away a "perk" of the Next program.
    08-12-2013 03:11 PM
  10. gfiz's Avatar
    When were kids, my grandparents would send me and my sister a $20 bill for the both of us to split. I'd take it and then give my sister a $10 bill. She'd cry and cry because "I was getting more". I suspect Verizon and ATT are advertising to people like my sister with their edge and next plans.

    Sent from my Windows Phone using Tapatalk
    09-08-2013 11:03 AM
35 12

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