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Contributor

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1 Message

Thu, Sep 18, 2014 3:20 PM

Upcharge for a new contract? Terrible!

So, AT&T raised my smartphone access charge from $25 per month to $40 per month because I ordered the new iPhone and renewed a new 2-year contract.

 
The solution you offered me?  Cancel my service and return the 3 new phones, or pay $500 for each phone instead of $199.  They actually said they'd rather lose my family plan to another carrier ($5,000 in revenue over the next 2 years) than leave my discount in place. Please don't explain that this is your new policy, ... I've gotten enough of that already, but this is a TERRIBLE way to treat a customer of over 20 years!

Responses

kdfederer

ACE - Expert

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12.2K Messages

6 years ago

With the Mobile Share data plans, you get a discount for being out of contract. If you buy a subsidized phone, you lose that discount for the length of the contract because you are no longer out of contract.

That was the reason for the lower prices on the shared data plans. You can't have lower pricing AND subsidized phones.

With the new shared data plans, AT&T is no longer subsidizing phone costs. One way or another, you are going to pay for the phone, either by losing the out of contract discount, or by paying full price for the phone, either up front or by using NEXT and paying over 20 to 24 months.

This is a user to user forum. I am a user, just like almost everyone else on the site.
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Teacher

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13 Messages

6 years ago

Yes, we get it.  AT&T is hellbent on making the customers now pay for the phones.  But let me try phrasing this question differently since its seems like everyone trying to defend the rate change is unable to do math.

 

The cost of an iPhone 6-16BG subsidized it $199+tax.  Mobile share plan fee is $40.

The cost of an NEXT-18 phone, is $0.  Mobile share plan fee is $15.  Phone device cost per month is $27.09.

 

Subsidized monthly cost - $40.  NEXT-18 monthly cost - $42.09.  A whopping $2.09 difference.

 

Assuming 3 phones, over 2 years, the NEXT-18 plan will cost $150.48 more than a two year contract, BUT, PRS513 spent $597+ tax to purchase the 3 phones "subsidized".  Where then is that extra $450 going?  Its certainly not being used to pay off the cost of the phone...its pretty clear that is hidden in the $40 Mobile share plan fee.  What benefits are there then to purchasing a subsidized 2 year contract, cause the way I see it, not only are there no benefits, but AT&T is actually punnishing their customers for paying a significant portion of the phone cost upfront!  Sounds a lot more like a scam and a lot less like quality customer service!

 

@PRS513 - Im dealing with this same thing.  AT&T provided little help as I ordered my iPhone from Apple directly.  Since every carrier is now doing these $0 down pay monthly type plans as their primary plans, escaping it may be difficult.  My suggestion (as provided by Apple and confirmed by my local Apple Store) is to leave the devices sealed when you receive them.  Take them to your local Apple Store, (or AT&T if purchased directly from them).  Do a return.  When completed, purchase back the same device you returned under the NEXT plan of your choice.  While this wont keep your montly bill down, it will save you a good $450+ over the cost of the 2 year contract for 3 lines and $600+ upfront.  While you cant retire on that, its a helluva lot better than nothing.

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