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AT&T is going out of the business of subsidizing cell phones. You used to get a $500 phone for 99 cents and then they made the money back by charging $40 a month for data.

Now you pay full price for the phone with the NEXT plan in monthly installments. With a 10GB or higher plan you get your data for $15 a month. If you decide to buy the phone at a contract price, then you go back to paying $40 a month for data, because you lose the $25 credit on data.

The savings with the NEXT plan over two years is $190.

Calculate the cost with the

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Anonymous
#895224

The original poster gets the concept, but is a bit off.

The part about old contracts are true.You would pay a discounted price for your phone in exchange for agreeing to stay with AT&T for 2 years.

AT&T would recoop the cost by inflating the rate plans.

Several things happened to make these no longer the best way to get a phone. First, some people wanted to upgrade more often. A new phone is being released every 6 months. Second, with as much usage as people put on their smartphones, most phones begin wearing out shortly after the first year of use.

Many people were, and still are, being put in situations where their phones are outside the warranty period, showing major malfunctions, but having to wait for their 2 year mark for an upgrade. Lastly, phones are becoming increasingly more powerful, aka more expensive. Discounted prices are no longer cost-effective for both the carriers or the customers.

The new Mobile Share plans are designed to make the transition to the installment plans more attractive while also making things simpler. You pay a flat rate for a data bucket that everyone on the account uses.

That rate is determined by the size of the bucket. You pay $40 per month per smartphone for unlimited talk and text. For every phone that is not in a contract (i. e.

on an installment plan), there is a discount off the $40. The amount of the discount is dependent on the size of the data bucket.

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