Can someone explain AT&T Next program?

Discussion in 'iPhone 6' started by RyansTitan05, Aug 14, 2014.

  1. RyansTitan05

    RyansTitan05 Contributor
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    Anyone used this? Can some one explain it to me? The lady at att confused me!
     
  2. Ledsteplin

    Ledsteplin Genius
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    It is complicated. It's similar to Verizon's Edge plan. I would only do it if I had no other way to get a new iPhone. A 2 year subsidized contract plan is better. But if money were an issue, I would do it. There's some things not to like about Next. One can end up paying way too much for their phone. If you upgrade early, you can't keep your old phone. You have to give it back to AT&T. It's only good if you don't have $200 to buy on contract. Here's a review of the plans:
    http://www.cnet.com/news/why-at-ts-new-pricing-plans-are-only-a-bargain-for-some/
     
  3. ednygma

    ednygma Contributor
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    The only thing missing from her table in that article is that if you get the phone through the NEXT plan the $40 monthly price is actuall $15 due to a $25 credit you get. If you do not buy the phone through the NEXT plan (aka, buy it out right) you don't get that credit and pay the $40.

    I don't particularly like the NEXT plans but they have them priced to be almost a wash compared to the old plan. You actually save about $50 over the 2years through the NEXT plan compared to the old way of pricing by buying the subsidized phone.
     
  4. Ledsteplin

    Ledsteplin Genius
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    It's all confusing to me. I have Verizon, so I know nothing about Next. I really don't know much about Verizon's Edge plan either. I'm sticking with their More Everything Plan. I have 4 phones on my service and it's working ok for us. We share 4 gb of data. We're all on wifi 97% of the time. Thanks! :)
     
  5. KPSK

    KPSK Member
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    I read somewhere that with the 2 year contract of upgrade, you were actually paying for full retail of the phone by the time the contract was up. Hidden charges behind the scene for what someone proved out.
     
  6. Hinezy

    Hinezy Contributor
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    I've been having trouble trying to figure out when I'm eligible for my upgrade. I'm on ATT and when I dial *639# it tells me I'm eligible now to upgrade through the Next plan. Same thing on the ATT website! It used to give the date when the two year contract expires but not anymore. It's like they're trying to shove Next down our throats! No thanks, I'd like to keep my grandfathered unlimited data!


    Sent from my iPhone 5
     
  7. Ledsteplin

    Ledsteplin Genius
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    I suppose if you counted every dollar spent each month, it might work out like that. But when you consider we get unlimited texts and talk minutes, plus free international texting, 4 shared gb of data, and cloud storage, it looks a bit different.
     
  8. missygal

    missygal Zealot
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    I agree 100%!!!
     
  9. Target

    Target Evangelist
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    I ran some numbers a while back and it boils down to when you want to pay the cost of the phone. Upfront and have lower monthly recurring or over time and the add the cost of the phone in payments. I think there were two options. 18-months and 26-months. (Or something close.)

    The only caveat was under the old subsidized rate plan you'll over pay about $50 on the cost of the phone. The cost of the phone is paid partially upfront and through lose of a $25 discount monthly.
     
  10. ednygma

    ednygma Contributor
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    From what I have gathered in talking with them they are phasing out other options to get phones and will eventually force us to use the NEXT plan (probably same thing at Verizon but cannot say for sure).

    As far as data usage, my wife is on a separate plan with unlimited data but they are now lowering the data threshold before they start throttling her bandwidth. When she called them the phone rep told her they basically are going to start crunching the bandwidth on unlimited users to feel like dial up in order to encourage them to get off the unlimited data plans and go to the shared plans.

    I can only imagine that all the carriers (at least the bigger ones) will follow suit eventually because it seems they are all in lock step with these kinds of moves.
     
  11. Ledsteplin

    Ledsteplin Genius
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    You may be right. The carriers will for sure be pushing the no contract plans. There's more in it for them and less for consumers. If still available, one may have to ask their carrier for the old fashioned contract plan. Most can not afford to pay full price for a phone every 2 years. I expect the iPhone 6 base model to sell for about $650. So even buying at full price will be paying more than we used to. But I'd rather squirrel away $35 a month in my piggy bank and pay full price, than go with a Next or Edge plan. The carriers are the only winners there. If one thinks they are getting a good deal with the Next or Edge plan, I have a bridge here in Florence, AL that crosses the Tennessee River I'll sell real cheap. :D
     
  12. ednygma

    ednygma Contributor
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    I do not disagree with anything you are saying but the last part and only semi there. I don't think anyone is getting a good deal with the NEXT plan on AT&T but I don't think they are getting a terrible deal either. I did the math on what I would pay using the 'old' method of buying a subsidized phone vs buying one on NEXT assuming both are under a shared data plan (because they are pushing that and it will soon be the only way to have a plan) and it came out slightly better over 24 months under the NEXT plan than not. We have two AT&T accounts in our house. The first has mine, my daughter's (on NEXT) and my mother's on a shared plan and the second is my wife's which is on a grandfathered 'unlimited' plan. And based on the way they are now throttling her account we are getting ready to merge her over and add to our shared plan.

    Neither is truly a better deal than the other but neither is truly a worse deal than the other either.

    In other words, they basically have the consumer by the short hairs either way (at least in my opinion).
     
  13. Europa

    Europa Moderator
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    You'll pay more with NEXT than
    You say neither is a better deal than the other, but you failed to account for the group of people who use Next to upgrade every year. Many Next subscribers will. That's one of the advertised perks. They are paying a lot more in the long run than those who get full subsidy on odd years and pay full cost on even years or those who get partial subsidy every year. This is because they can't sell the phones at the end of the year. You don't own it if you don't pay it off and you don't pay it off in one year.

    The amount that they lose is variable because not everyone maximizes their profit by selling for actual value. Many choose to sell to online pawn shops because they perceive it to be easier than eBay or Craigslist. Even though Gazelle pockets part of the profit, those who go through them will still come out better off than someone who went with Next even though they didn't maximize their profit. That said, not everyone has $650+ to pay upfront for a full cost iPhone every other year.
     
  14. ricks2gtouch

    ricks2gtouch Zealot
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    With those that will stick to the program and pay off the phone, then the cost of ownership with the Next program is less than with a "traditional" subsidized option.
     
  15. Ledsteplin

    Ledsteplin Genius
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    Quote from The Verge:
    Do the Math, Next is a rip off!

    "Let's do the math: AT&T says that the Samsung Galaxy S4 will have a monthly installment fee of $32, on top of your existing AT&T service fees, which already include a device subsidy. The exact amount of that subsidy is unknown — AT&T declined to comment when I asked — but most industry estimates have put it at something like $20 per month. That's how you can get a GS4 for $199 with a new two-year contract, even though it costs $620 at retail: after two years, AT&T will have collected $680 in total device payments from you, and you get to keep the phone.

    But the balance tips entirely towards AT&T with Next. Assuming that same $20 subsidy, after 12 months of Next you will have paid AT&T $384 in Next monthly installments and $240 in device subsidies, for a grand total of $620. Again, that's exactly the full retail cost of an unlocked Galaxy S4 — but you don't get to keep that phone, even though you just paid full price for it. You have to trade it in to get a new phone — effectively giving AT&T a free GS4 to refurbish and resell to its next unwitting customer.

    Now, you do get to keep your Next phone if you pay 20 monthly installments, which will cost you a whopping $1,040 if you assume a $20 subsidy: $640 in Next payments, plus $400 in subsidies built into your AT&T plan. That's $420 in pure profit for AT&T, which just made you pay full price for a phone while charging you inflated service prices that include a subsidy specifically designed to lower the upfront cost of that phone."

    It's all confusing to me. I'm happy with my More Everything Plan with Verizon. I pay $248 per month for 4 phones with unlimited text and talk, 4 gb of shared data, free international texting, and free cloud storage.
     
  16. Hovax615

    Hovax615 New Member

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    You still keep your unlimited data plan. I don't know why people think they lose their data plans when they upgrade. If you buy your phone from best buy they try to tell you that you cant keep your plan but that's all bs.


    Sent using iCafe app
     
  17. ricks2gtouch

    ricks2gtouch Zealot
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    Posted in a previous thread about the NEXT plan. This compares the cost of ownership between the traditional subsidized purchase and an AT&T NEXT plan purchase. This is using the 10gb mobile share plan as a basis.

    This is NOT taking into account the option to trade in the phone after 12 months on NEXT, in which case you give up your phone without monetary compensation. To own the phone outright, you have to pay off through the entire plan.

    Subsidized
    Initial Cost $ 200.00
    Line Cost $ 40.00
    NEXT Cost $ -
    Commitment 24 months
    Total Cost $ 1,160.00

    NEXT 12/20 plan (20 months of payments or upgrade after 12 months)
    Initial Cost $ -
    Line Cost $ 15.00
    NEXT Cost $ 32.50
    Commitment 20 months
    Total Cost $ 950.00

    This is, of course, for a 16gb 5s at "normal" cost. Going with more GB or the 5c or getting discounted upgrade subsidized cost would change things a bit.
     
  18. Ledsteplin

    Ledsteplin Genius
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    AT&T is pushing Next because THEY make more money off of YOU on that plan than they would with you on the subsidized plan.
     
  19. ricks2gtouch

    ricks2gtouch Zealot
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    How? The above comparison is the cost of ownership of the iPhone when the same mobile share plan is used for both subsidized and NEXT. Certainly if people trade their phones in after 12 months to get the latest phone, AT&T makes money off your old phone. But for folks that keep their phone through the NEXT plan, the cost to own it is less than subsidized. If I am missing something, please let me know.
     
  20. Ledsteplin

    Ledsteplin Genius
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    How? The question should by "Why?". Companies don't "Push" a product or service one over another, unless there's more in it for them. Maximizing profit is what they do. So if AT&T benefits with more profit with the Next plan, you can bet that means consumers pay more. Crunching numbers is futile. I posted an article above with number crunching that shows how Next is a rip off. You post number crunching showing Next to be a great deal. So to avoid all that "numbers" confusion, I simply just look at AT&T's bottom line. They make more money with Next. Where does that additional profit come from? You! And BTW, how did you get my avatar? LOL This had happened before. I thought someone had stole it. But now I see it's an app bug.
    ImageUploadedByiCafe Forums1408285356.956897.jpg
     

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