Contract or No contract?

[psudotechzealot]

When it comes to purchase your WP, do you prefer to buy it off contract or with a contract? Could you explain why?

 

[Chregu]

When it comes to purchase your WP, do you prefer to buy it off contract or with a contract? Could you explain why?

At the moment I'm on contract. However in Switzerland (with Orange) if you don't take a reduction on your phone, you can get your monthly fee reduced. And in every way you calculate it, you'll always better off if you just buy your phone independently from a contract. (You have to buy it from another retailer though, not in the carrier stores directly, they are very expensive.)

So I'll keep my contract, but I won't buy a phone with it anymore.

 

[Pete]

Off contract. I want to be the one who decides when and what my next handset will be.

 

[Kebero]

Now that the US has both MVNOs and decent, carrier-owned pre-paid options, I'm through with contracts. Even a high-end device like the 1520 would cost me less over two years buying off-contract and going with a MVNO, T-Mobile's pre-paid or AIO.

 

[foxbat121]

If you are in US and sticking with big dogs like AT&T and Verizon, there is really no incentive to go off contract because you don't get any discount on your monthly subscription (which portions of it pays for your subsidized phone whether or not you buy subsidized phone or not). If you buy off contract, that means more profit for AT&T or Verizon.

 

[Kebero]

If you are in US and sticking with big dogs like AT&T and Verizon, there is really no incentive to go off contract because you don't get any discount on your monthly subscription (which portions of it pays for your subsidized phone whether or not you buy subsidized phone or not). If you buy off contract, that means more profit for AT&T or Verizon.

While I agree that, in the absence of a discounted rate, buying off contract when you are with ATT or VZW, I really wish that this subsidy myth would end. The carriers are more expensive, but that's just because they can get away with it.

 

[foxbat121]

It's not a myth. Buying a top of line of smartphone that normally costs $600 to $800 for $0 or $200 means carrier will have to subsidize it through your contract period. T-Mobile is the only carrier that offer you a service discount if you bring your own phone.

That subsidy added into the cost of their bottom line. Now if everyone stops buying subsidized phone, whether or not they will pass that saving to you is another story. But right now, I will certainly not willing for carrier to get free profit from me. Even if I buy phones at full price, I will still use my contract allowance to buy a phone that I may or maynot need. I can always sell the new phone for a decent profit to compensate the other phone I purchased at full price.

 

[Smyrna5]

No contract for me. Why tie yourself to a company if you don't have to? It means lower pricing for me because I don't tend to get high-end phones, do why should I subsidize them? I like transparency in pricing and no strings attached, so I remain a T-Mobile customer in the US. Unfortunately, my legacy contract from the old way of doing things has me tied down until March 2014, when I will be free.

 

[Kebero]

It's not a myth. Buying a top of line of smartphone that normally costs $600 to $800 for $0 or $200 means carrier will have to subsidize it through your contract period. T-Mobile is the only carrier that offer you a service discount if you bring your own phone.

That subsidy added into the cost of their bottom line. Now if everyone stops buying subsidized phone, whether or not they will pass that saving to you is another story. But right now, I will certainly not willing for carrier to get free profit from me. Even if I buy phones at full price, I will still use my contract allowance to buy a phone that I may or maynot need. I can always sell the new phone for a decent profit to compensate the other phone I purchased at full price.

1. The recoup the cost of the subsidy via the contract and ETF.

2. Technically, the new plans from T-Mobile (not the pre-pad) are not discounted if you bring your own device or purchase one at full retail. Rather, they simply don't sell subsidized phones. Their plan prices don't change based on how you get the device. You will have an additional fee if you opt to finance/lease/whatever you want to call it your equipment.

 

[chezm]

I'm on a contract, but thats mainly because i get a huge discount. However, i purchased my L920 on Kijiji to avoid renewing my contract. In my opinion, its definitely much better to outright purchase the device than be locked in a contract.

 

[Kebero]

If only enough people in the US would realize that. If a significant number move to AIO, MVNos, and T-Mobile's pre-paid, maybe we could see the market shift to a European-style one.

Then all we'd have left is to somehow generate ISP competition

 

[apalm8]

I change phones so often I almost always buy off contract.