If I upgrade to a new phone, what happens to my old contract?

[Bszelda]

I am possibly planning on upgrading to the iPhone 5 when it is available and I have some questions.  What will happen to my old contract?  I currently have until the end of February until my 2 year contract with my HTC Inspire 4G runs out.  By upgrading, am I adding 2 years onto my current contract or does the new 2 year contract replace the remainder of my current contract?  Do I get to keep my current phone if I choose to upgrade (i.e., to do whatever with like sell or use without AT&T service).  Are there any fees associated with upgrading (i.e., is there any additional costs besides the price of the phone being upgraded to)?  

I'm currently paying ~$90 per month for my one phone.  Is it possible to reduce the plan on-the-fly to reduce monthly cost?  Some of these things are a bit confusing and I'm just looking for some clarification.  Thanks in advance to anyone who can help me answer these questions!  

[wingrider01 ACE - Geek · Accepted solution]

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Bszelda wrote:

I am possibly planning on upgrading to the iPhone 5 when it is available and I have some questions.  What will happen to my old contract?  I currently have until the end of February until my 2 year contract with my HTC Inspire 4G runs out.  By upgrading, am I adding 2 years onto my current contract or does the new 2 year contract replace the remainder of my current contract?  Do I get to keep my current phone if I choose to upgrade (i.e., to do whatever with like sell or use without AT&T service).  Are there any fees associated with upgrading (i.e., is there any additional costs besides the price of the phone being upgraded to)?  

I'm currently paying ~$90 per month for my one phone.  Is it possible to reduce the plan on-the-fly to reduce monthly cost?  Some of these things are a bit confusing and I'm just looking for some clarification.  Thanks in advance to anyone who can help me answer these questions!  

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First - make sure you are eligible for upgrade, with your contract ending in Feb of 2013 you may not be eligible for a full discount, you maybe eligible for a early upgrade which is discounted price of phone + 250.00 + 36.00 activation.If you where eligible, your old contract would be closed and you would start a new 2 year commitment.

For a smartphone, even at the lowest single user of 450 minutes @ 39.99 + the required minimum data plan of 300MB @ 20.00 you are at 60.00 before taxes which vary depending on where you are at. If you want texting that adds 20.00. You only cost saving method would be to drop texting if you have it, but then you pay per message.

[Bszelda]

Thanks for replying.  I checked and it currently allows me the option of purchasing an iPhone 4S 16GB for $199.99 + free shipping.  It says that a contract is required (obviously) and a $36 upgrade fee applies.  It mentions nothing about a $250 fee so I assume that there is none for my upgrade.  

That's what I thought concerning the old contract being closed.  I'm glad that that is the way it works because you end up saving money in the long run compared to a full contract on top of the old one.  Currently, I'm paying the 450 minutes @ $39.99 + 2 GB Data plan @ $25 + unlimited messaging @ $20.  That's about $85 plus the taxes/fees usually make it around $90 - $92 per month.  

Also, I assume that if I upgrade to a new phone, I get to keep my current one?  Plus, does the new phone come with a sim card ready to use or would I need to take my old phone (and it's sim card) to a local AT&T location to have things switched out?

[stclair49]

You keep the old phone. You can do with it what you want. The new phone will come with a Sim card. When you activate the new phone the Sim in your old phone is deativated and is no longer used. If you sell your old phone, remove the sim card and dispose of it.

[wingrider01 ACE - Geek]

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Bszelda wrote:

Thanks for replying.  I checked and it currently allows me the option of purchasing an iPhone 4S 16GB for $199.99 + free shipping.  It says that a contract is required (obviously) and a $36 upgrade fee applies.  It mentions nothing about a $250 fee so I assume that there is none for my upgrade.  

That's what I thought concerning the old contract being closed.  I'm glad that that is the way it works because you end up saving money in the long run compared to a full contract on top of the old one.  Currently, I'm paying the 450 minutes @ $39.99 + 2 GB Data plan @ $25 + unlimited messaging @ $20.  That's about $85 plus the taxes/fees usually make it around $90 - $92 per month.  

Also, I assume that if I upgrade to a new phone, I get to keep my current one?  Plus, does the new phone come with a sim card ready to use or would I need to take my old phone (and it's sim card) to a local AT&T location to have things switched out?

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what is the exact wording of the message? there are two message that have just a bit of a difference in your cost, one is the full discount price plus the activation charge, the other is the full discount price plus a earyl upgrade cost plus the activation charge.You are still 6 months from contract end, normally the full discount is 20 / 24 months