Important upgrade related information

With a new Iphone coming out, folks will be clamoring to get the newest device at the best possible price. Unfortunately, those folks probably used their upgrade to get the 5s, and are looking to use the upgrade on one of their other lines to get discounted pricing on their phone. The process for this has recently changed, and with the large number of people getting a 25$ credit for being out of contract or having a contract that predates a certain cut off date, I figured I would give a brief explanation of the changes and the impacts it makes to contracts, based on a little research.

Currently, AT&T is doing a SHARED upgrade. In the passed, folks were used to doing a CROSS upgrade. These are two different things.

With a cross upgrade, you upgraded the line that was eligibile, it took the contract, and the line that needed the phone activated the sim card to their phone number. THIS IS NOT THE CASE WITH A SHARED UPGRADE!

If you do a SHARED UPGRADE you literally share the upgrade eligibility of all lines throughout the account. This means that the contract follows the device, not the line.

Examples:

1. Phone A doesn't expire for 3 months, but phone B is eligible for upgrade today. Phone A Takes phone B's upgrade. Now, phone B does not expire for 3 months. Phone A has a new contract. (And if phone A is getting the out of contract discount, it now is not, because it took over phone B's new contract)

2. Phone A is on NEXT with 8 months left to trade in. Phone B qualifies today. Phone A wants an iPhone 6, phone B is okay with taking the device Phone A is currently using. The installment is then moved to Phone B, who is now responsible for paying the remainder of the balance until trade in or pay off, and Phone A is now on contract. (And if phone A is getting the out of contract discount, it now is not, because it took over phone B's new contract)

3. Phone A is on a two year agreement and doesn't qualify for upgrade as it just upgraded two months ago. Phone B qualifies for NEXT and doesn't mind taking over Phone A's device, then Phone A now has an Iphone 6 for 27$ a month, and Phone B is under a two year agreement. (In this case, Phone A now gets the out of contract credit. Phone B will not, as it has taken phone A's contract)

4. Phone A is a smartphone that does not qualify for upgrade until December and wants the new Iphone. Phone B is a basic device and it is out of contract. Phone A uses Phone B's upgrade. Phone B is now under contract until December, and Phone A is under a new two year agreement starting today. (Losing the out of contract discount as it has taken over the two year agreement available from phone B)

TL:DR

If you use another line's upgrade, that contract follows the device to the line it is being used on, removing the out of contract discount.

The installment plan follows the phone as well.

If you are thinking of using a shared upgrade on a basic phone for the Iphone 6 to keep your discount for being out of contract on your smart phone line, this will not work, the contract will be active on the line that the phone is active on at the time of the transaction.