Post by jeffolie on Jul 23, 2013 7:21:41 GMT -6
Verizon, AT&T and T-Mobile's new upgrade plans aren't budget friendly
07/22/2013
Three of the four major carriers recently unveiled programs that allow subscribers to upgrade their smartphones more frequently than the industry standard of every two years.
With leading manufacturers like Apple and Samsung refreshing flagship devices at least once annually, the new plans are geared toward consumers who want the next big thing now.
The problem is, T-Mobile's JUMP, AT&T's Next and Verizon's Edge programs aren't budget-friendly even though they don't require service contracts.
And the only way they can make any sense is if you actually do upgrade every year. Even then, you might be better off going the contract route.
Peel away the marketing, and AT&T and Verizon's programs boil down to this: Once you pay at least half the cost of an unsubsidized phone, you can trade it in for a new one with no upfront fees.
In AT&T's case, you have to pay 60 percent of the phone's full retail price. The carrier spreads the cost of the device over 20 monthly payments and trade-ins are available after 12 payments. For the Samsung Galaxy S4, which retails for $640 from AT&T, that amounts to $384.
In comparison, the S4 costs $200 upfront from AT&T with a two-year service contract (the contract price is subsidized by the carrier, which then recoups the difference over the life of the contract). The early termination fee is $205 to break the contract after one year.
pay $405 vs. $384, sell the old phone and use those funds to pay for the new device. If the old phone is in decent shape, you'll generally be able to get more for it than the subsidized cost of a new phone, easily making up the $21 difference.
With Next, you don't have to deal with the hassle of reselling the device and there isn't a hefty upfront fee. But if you don't upgrade at the 12-month mark, you effectively start paying for the same phone twice. You're required to pay off the balance on the existing device, whether or not you continue service with the carrier.
One difference with Verizon's Edge plan is that it allows consumers to upgrade after six months as long as they pay 50 percent of the full retail price of the phone. I'm not sure why anyone would want to pay $325 for a phone (half the cost of the $650 price tag on the S4 from Verizon) and use it for only six months.
T-Mobile's JUMP is slightly different, in part, because the carrier did away with contracts and subsidized phones months ago.
The carrier requires an upfront payment and a monthly fee for the smartphone and charges $10 a month for the program, which includes insurance. JUMP participants can upgrade up to twice a year, but each trade-in requires an upfront payment for the new phone. For reference, the down payment on the S4 is $150 and the monthly device fee is $20 (collected for two years).
After one year, you will have paid $510 in device and JUMP fees. Do you want to do it all over again just for a new phone?
One factor that swings heavily in T-Mobile's favor is that its wireless service plans are much lower than AT&T and Verizon because the carrier cut prices when it eliminated subsidized phones. On the flip side, Verizon's service has long been considered the most reliable in the Denver area, and PC Mag recently named AT&T's 4G LTE network as the fastest in the city and nation.
Personally, when I'm under contract and want to switch devices, I resell my existing phone. I will continue to go that route despite the new plans.
www.presstelegram.com/ci_23707935/verizon-at-amp-t-and-t-mobiles-new
07/22/2013
Three of the four major carriers recently unveiled programs that allow subscribers to upgrade their smartphones more frequently than the industry standard of every two years.
With leading manufacturers like Apple and Samsung refreshing flagship devices at least once annually, the new plans are geared toward consumers who want the next big thing now.
The problem is, T-Mobile's JUMP, AT&T's Next and Verizon's Edge programs aren't budget-friendly even though they don't require service contracts.
And the only way they can make any sense is if you actually do upgrade every year. Even then, you might be better off going the contract route.
Peel away the marketing, and AT&T and Verizon's programs boil down to this: Once you pay at least half the cost of an unsubsidized phone, you can trade it in for a new one with no upfront fees.
In AT&T's case, you have to pay 60 percent of the phone's full retail price. The carrier spreads the cost of the device over 20 monthly payments and trade-ins are available after 12 payments. For the Samsung Galaxy S4, which retails for $640 from AT&T, that amounts to $384.
In comparison, the S4 costs $200 upfront from AT&T with a two-year service contract (the contract price is subsidized by the carrier, which then recoups the difference over the life of the contract). The early termination fee is $205 to break the contract after one year.
pay $405 vs. $384, sell the old phone and use those funds to pay for the new device. If the old phone is in decent shape, you'll generally be able to get more for it than the subsidized cost of a new phone, easily making up the $21 difference.
With Next, you don't have to deal with the hassle of reselling the device and there isn't a hefty upfront fee. But if you don't upgrade at the 12-month mark, you effectively start paying for the same phone twice. You're required to pay off the balance on the existing device, whether or not you continue service with the carrier.
One difference with Verizon's Edge plan is that it allows consumers to upgrade after six months as long as they pay 50 percent of the full retail price of the phone. I'm not sure why anyone would want to pay $325 for a phone (half the cost of the $650 price tag on the S4 from Verizon) and use it for only six months.
T-Mobile's JUMP is slightly different, in part, because the carrier did away with contracts and subsidized phones months ago.
The carrier requires an upfront payment and a monthly fee for the smartphone and charges $10 a month for the program, which includes insurance. JUMP participants can upgrade up to twice a year, but each trade-in requires an upfront payment for the new phone. For reference, the down payment on the S4 is $150 and the monthly device fee is $20 (collected for two years).
After one year, you will have paid $510 in device and JUMP fees. Do you want to do it all over again just for a new phone?
One factor that swings heavily in T-Mobile's favor is that its wireless service plans are much lower than AT&T and Verizon because the carrier cut prices when it eliminated subsidized phones. On the flip side, Verizon's service has long been considered the most reliable in the Denver area, and PC Mag recently named AT&T's 4G LTE network as the fastest in the city and nation.
Personally, when I'm under contract and want to switch devices, I resell my existing phone. I will continue to go that route despite the new plans.
www.presstelegram.com/ci_23707935/verizon-at-amp-t-and-t-mobiles-new