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super_pj
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Picasso

Teacher

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13 Messages

Wed, Sep 10, 2014 2:54 AM

ATT Next Savings?

Based on the website (http://www.att.com/shop/wireless/next.html), they lay it out the payments assuming you buy a Galaxy S5 (which I assume is similar in terms of pricing to the iPhone 6). 

 

Right off the bat, you know that the 1 year plan isn't really saving you anything considering you nearly paid for more than half of the phone. Which brings me to this:

 

Doing some math and skipping the boring algebra, I came up to that doing 18 months Next Plan and using the 24month option to pay it off so that you can keep is actually the best deal! Based off of their 1 year comparisons, the 18month plan is best but who would want to give BACK the phone at this point? If you were to use the Next plan of 18months and 24months to pay it off, you would be saving yourself around $190. 

 

Here's the breakdown: 

ATT Next Savings

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super_pj

Teacher

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13 Messages

8 y ago

After what cousintim said, here is an updated chart. Verdict? 

 

10GB or more: ATT Next Plan

6GB or less: 2 Year contract 

 

*Considering you plan on keeping the phone for 2 years and not giving it back

ATT Next.png

cousintim

Professor

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1.7K Messages

8 y ago

An informative chart but the costs are based on a 10GB data plan, which assumes a family or way-above-normal data usage.  A smaller data plan raises the Next plan's monthly smartphone access charge by $10/month, which pretty much negates any savings.

 

Eligibility for a corporate discount would tilt the decision to the 2-year contract. 

super_pj

Teacher

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13 Messages

8 y ago

Yes, youre correct. You have to spend a little extra (anything more than 6GB) to get the savings in which your access charge goes from $25 to $15. Otherwise, youre savings are indeed negated on anything less than 6GB. 

 

Here's the new chart showing the costs if you were to have a 2GB plan. You would lose $50 over 2 years if you were to use Next; which isn't as bad considering you are now not on a contract. 

Screen Shot 2014-09-09 at 10.16.23 PM.png

jtrue28

Scholar

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249 Messages

8 y ago

Does the NEXT program give any savings towards customers who still have the unlimited data plan?

sandblaster

ACE - Expert

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57.8K Messages

8 y ago


@jtrue28 wrote:

Does the NEXT program give any savings towards customers who still have the unlimited data plan?


No. If you are not on the mobile share plan, it will be cheaper to get the phone via the "traditional" 2 year subsidized contract price. 

super_pj

Teacher

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13 Messages

8 y ago

No, having unlimited data is an even $30 versus the ATT Next plan which starts out at $20 for 300MB to 6GB for $80 plus $25 for access charge and 10GB for $100 to $50GB for $375 plus $15 for access charge. 

 

It is ultimately up to you to decide whether it is best for you (depending on how much data you use and how much you use your minutes considering $79.99 for 700 minutes with rollover, mobile to mobile, free nights/weekends, and holidays). 

jtrue28

Scholar

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249 Messages

8 y ago

We have a corporate discount, so I'm not signing up for any sort of "Share" plan.  They will have to pry the unlimited data out of my dead hands.

 

$30 for unlimited data sounds like a deal to me.  Good grief...the prices they are charging for 10GB.  No way.

super_pj

Teacher

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13 Messages

8 y ago

Best option I would say is to stick with the unlimited plan. 

Tutor

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5 Messages

8 y ago

Now it's time to decide whether to go to the Next plan or a 2 year contract on the new iPhone 6.

 

Have a family plan with 15 gb data and a corporate discount.  Two (out of 5) of us are upgrading.  (We either wear out or lose a phone!)  The two of us have old 4S iPhones.

 

We have been with AT&T for years and don't plan to hop carriers in the next two years -- and we don't upgrade.  

 

The question is if you're not going to upgrade in two years' time, is the 2 year contract the better deal even when paying the "activation" fee?

 

Thank you.

 

 

super_pj

Teacher

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13 Messages

8 y ago

Hi Shorecomber,

 

The true savings come not from the activation fee but from your access charge. According to the AT&T website when you pick a dataplan, it mentions that any 2 year contract before 02/09/2014 will receive a $25 discount from the $40 access charge. While any data plan larger than 10GB through a Next Plan will give you a $15 access charge.

 

Not knowing your corporate discount and going soley on ATT rates, going on the ATT Next Plan is simply the better option. Here is the breakdown of overall cost over 2 years for both plans: 

 

Screen Shot 2014-09-12 at 10.19.10 PM.png

 

Here is the breakdown for your monthly for ATT Next: 

$130 (15GB) + $15 * 5 (access charge for 5 lines) + 27.09 * 2 (2 new iPhone 6 on 24 installment period) 

 

Here is the breakdown for your monthly for 2 Year Contract:

$130 (15GB) + $40 * 5 (acess charge for 5 lines) 

 

As you can see, the difference in access charges saves you approximately $70 a month or better yet, just a little over $2,000 in 2 years. 

Teacher

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14 Messages

8 y ago

All this data is a 2 person plan.  If you have 2 people on the line, yes its less than if you are a one line user.  Misleading ugh  get it together ATT.  All my math shows if you are on contract now and switch to the NEXT program you will pay more money, and in my case loose unlimited datat.  Where's the deal?

GeekBoy

Master

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4.1K Messages

8 y ago


@jtrue28 wrote:

We have a corporate discount, so I'm not signing up for any sort of "Share" plan.  They will have to pry the unlimited data out of my dead hands.

 

$30 for unlimited data sounds like a deal to me.  Good grief...the prices they are charging for 10GB.  No way.


While the "unlimitied data" plan sounds like the best option, keep in mind that AT&T has been throttling the "unlimited data" plan users for abotu 4 years now.  If you are in an area with high data congestion, and you have an unlimited data plan and the data traffic in your area starts to get congested, they will throttle your data rate.  Right now, for most users, the throttleing starts at 5GB usage on an LTE phone (3GB on a 3G phone), but if some areas the congestion is worse, and the throttleing starts sooner.  Also in some areas, they look at the data usage pattern and see that on the 3rd day of your billing cycle, your usage looks like you are going to go over the 5GB "limit" so they may start throttling you sooner.  Unlimited may be great for you, but not everyone is willing to make the sacrifices necessary to keep that service, when they can get more features for a similar cost (or possibly lower cost).

 

My wife & I had the unlimited data plans on our phones from back when we first got our personal Blackberry smartphones, and we also have corporate discounts. After we were on the iPhone 5 phones, she was getting throttled every month about 1 week before the end of our billing cycle, but my usage was always below 2-2.5gb for the entire month.  We did the math, and found for us, the Mobile Share plan was a break-even cost wise if we moved both of us to a 10GB shared plan (this was ignoring the $25/month discount because we knew when we upgraded phones we might lose that discount).  The difference was that the 10GB of data was one large pool and either of us could use it unlike the old way, where we each had a 5GB pool to work with before we would get throttled.  Now with the new plan, she doesn't get throttled, and we still use less than 10GB per month combined so the cost is the same (actually we save $50/month due to the discounts).  Yes, we lost our old unlimited plans and can never get them back, but we gained her not getting throttled every month.  We also gained the ability to use tethering with our phones, and several other features which were not offered to the unlimited data plan users.  In our case, the gains were more than the losses, and we gained the $25/month discount for each phone being billed at the "no contract" discount price.  The only thing we have to worry about now is that we might have to pay an extra $15 or $30 every once in a while if one if us uses excessive data for some reason (like the podcast app downloading a 2.5GB video podcast for me that started on wireless then switched to cellular at about 100-200MB into the download).  Even with that, we are probably not going to go over the limit on our 10GB plan and have to pay an overage because we still have 3GB to go for this last week of our billing cycle.

 

Now that it's time to get a new phone, we can sign a contract and lose our discount, or we can buy a phone at full price and keep the discount.  The choice is ours.  I just did a simple "back of the envelop" calculation and saw that the $25 discount comes out to $600 over 24 months, and a contract phone only saves me $450 over the 24 months, so the contract would actually cost me $150 more than paying full price for the phone.  Once I looked into more details, I saw that there is also a $40 upgrade/activation fee on the contract phone that I wouldn't have to pay if I used a NEXT program, so now, that savings is getting closer to $200, or about $100/year for the 24 month contract term.  I, for one, am glad I have the choice to make on how to upgrade.  I can look at the total costs and see which one is a better fit for me, and go accordingly.  NEXT is not perfect for everyone, but it is a better deal for many than they realize because they don't look at the total cost, they are hung-up on the fact that they are either paying $650 for a phone that they feel they should only pay $200 for, or that they are now paying $40 for service that they used to only pay $15 or $25 to get.  They don't look at the total to see which option is more cost effective for them.

 

Heck, for some users, paying more money with NEXT may still be a better option because they don't have to pay $199 up front, they pay the phone costs split over 20 or 24 months so they pay $30-35 a month for the phone and $25 a month for the service (plus data) rather than $200 now for the phone and $40 a month for the service (plus data).  For them paying an extra $10-15 per month is better than paying $200 right now even though it will cost them a little more in the end.

super_pj

Teacher

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13 Messages

8 y ago

@nathaniel.byers wrote:

All this data is a 2 person plan.  If you have 2 people on the line, yes its less than if you are a one line user.  Misleading ugh  get it together ATT.  All my math shows if you are on contract now and switch to the NEXT program you will pay more money, and in my case loose unlimited datat.  Where's the deal?


If you have unlimited data, that would be your best option to stay with it instead of the 2 year or Next Plan.

 

The data was a simple 2 person plan to demonstrate the savings in a more simple fashion. Here is a data table representing a plan 4 Next Plans in comparison to 4 Two Year Contracts. Screen Shot 2014-09-13 at 7.40.29 AM.png 

According to the spreadsheet, you can see that your monthly payments between a 2 Year contract and the ATT Next Plan only differs $8 which doesn't sound like much. But looking at the "After Two Years" column show your overall cost over those 2 years for the 4 lines and as you can see, your savings on a ATT Next Plan is almost $800. 

 

Now if you were to have a data plan less than 10GB, your best option would be to do a 2 year contract. 

 

Also, please remember that the ATT website states that you can only have up to 4 ATT Next Plan accounts on your account. If you would like, I can show an updated table of how a 4 ATT Next Plan and 1 Two Year Contract account looks like. 

Voyager

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3 Messages

8 y ago

One thing I haven't seen discussed here is that on a 2-year contract you get to keep the phone, so you can sell it. But on Next plans you trade it in and get no value for it. If it's a 2-year old iPhone that's about $250 in loss. This is why the 2-year contact always beats a Next plan.

 

There is also a mis-calculation in everyones spreadsheet. The cost of the phone on an 18-month next plan is ~$486, not $325. ($27 * 18 months)

GLIMMERMAN76

ACE - Expert

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23.4K Messages

8 y ago

now how do you figure you lose the phone?  once its payed in full its yours period.  Now with next if your on the Next 12 you can get a new phone after 12 months so that means you can get a new iPhone year after year if you wanted.

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