The Next program is a scourage!

Since subsidies are slowly going away and since paying full price is becoming standard, programs like Next are important. You get to break up the full price. In exchange, you can trade up yearly. Or you can pay in full until the end of the term and the device is yours. If I'm going to have to pay the full price for a phone, I'd rather pay in installments instead of all upfront.

How is NEXT a ripoff?

If a customer is on the Mobile Share Value Plan, they get a $25/month discount on their $40/month fee for voice & text service if they have a 10GB data plan or higher. This means that over 2 years, they pay $650 for the cheapest iPhone + (24 * $15) $360 for their voice service, or they pay $1010 total when they purchase their phone using NEXT. If they purchase that phone on a 2 year contract committment, they pay $199 for the cheapest iPhone + (24 * $40) $960 for their voice & text service + $40 activation/upgrade fee, or they pay $1199 total when they sign the 2 year contract. In both cases, they still pay for their data rates, but that would be the same cost, so now, I don't know about where youlive, but where I live $1010 is less than $1199, so where I live buying a new iPhone using NEXT is cheaper than signing a new 2 year contract. I guess that my saving close to $200 over 2 years could be considered a "ripoff" but I don't think so...

Granted, if the customer has a lower data plan, their discount is on $15/month and not $25/month, so it may mean that they will pay more to use NEXT, but the choice is entirely theirs, and AT&T gives them the choice to make, rather than only offering one option. The customer just need to take the responsibility for understanding their needs and their situations and make an informed decision. NEXT may not be for everyone, but it is a great option for some customers.

You may not have even noticed, but I based my numbers on upgrading every 2 years, not every year, so if you only want to upgrade every other year, the "scourge" you hate su much, may actually save you some money in the long run.