Any Updates on Rumored End to Phone Subsidies?

[chgoguy80]

We've been with Sprint for about 16 years (Framily will be much more expensive for us so feel forced to take advantage of last upgrade) and we have 3 lines of 5 that are currently eligible for upgrades. We currently have Galaxy S3's and will likely go S4 Tri-band unless others would recommend otherwise? Fyi, a replaceable battery and storage slot are basically mandatory for us so given that, the S4 is the only option? We'd really like to wait for the S5 but that's why I am asking if anyone has more information about an end date or delay past S5 introduction?

I'm surprised there are not any real leaks other than here about it, given that all the major retailers - Best Buy, Target etc must know and are planning on it since their advertising plans and Ads are planned many weeks in advance? I can't imagine Sprint risking leaving major retailers in a fix having Ads for phone contracts and prices that won't exist?

Thanks, any information (not conjecture) would be appreciated.

 

[joshnys8913]

Contracts are still the real money maker unfortunately, and probably wont go away for years to come.... In my opinion at least. 

[Ascertion]

Contracts are still the real money maker unfortunately, and probably wont go away for years to come.... In my opinion at least. 

Essentially, financing your phone is no different than actually being locked into a contract - because you're still forced to pay for the rest of your device if you cancelled service with Sprint.  

 

I'd say if it happens it'll likely happen just before the release of GS5/M8.

[joshnys8913]

Essentially, financing your phone is no different than actually being locked into a contract - because you're still forced to pay for the rest of your device if you cancelled service with Sprint.  

 

I'd say if it happens it'll likely happen just before the release of GS5/M8.

That one carrier (T) did that they supposedly "riped up contracts" (not literally but everyone knows what I mean by that) and market it as "no more contracts" when its essentially the same dang thing! Just trying to lure people in. 

 

Not to get too far off subject but... I do like being in a contract it helps keep my credit open I am still young (24 here). Even though I got good credit from previous things still, its helps!  

[jamisonshaw125]

I still prefer 199 plus tax once and lock myself into a 2 year. I don't switch phones that often. It's not feasible for me.

 

Id rather not have 27 bucks added to my bill. In the same sense, I would rather pay for AppleCare+ once than 11 bucks a month for TEP. Everyone has a plan that works for them. However, I don't see contracts going anywhere anytime soon. There are a large number of people who are okay with it.

 

 

Sent from my iPhone using Tapatalk

[Ascertion]

That one carrier (T) did that they supposedly "riped up contracts" (not literally but everyone knows what I mean by that) and market it as "no more contracts" when its essentially the same dang thing! Just trying to lure people in. 

 

Not to get too far off subject but... I do like being in a contract it helps keep my credit open I am still young (24 here). Even though I got good credit from previous things still, its helps!  

I also prefer contract because then you know what you're getting and terms wont change for 2 yrs.

[koiulpoi]

Essentially, financing your phone is no different than actually being locked into a contract - because you're still forced to pay for the rest of your device if you cancelled service with Sprint.  

 

I'd say if it happens it'll likely happen just before the release of GS5/M8.

Absolutely correct. The difference is, if you bring your own device, pay yours off early, or simply run out the financing, your bill goes down (relatively), and nothing is tying you to Sprint save brand loyalty and a device investment. Very cheap devices on Craigslist, Swappa, hell even the Google Play Store are easy enough to come by that locking yourself in is a very conscious choice, and often a bad one.

 

With subsidies, you keep paying into that subsidy pool, no matter if you're month-to-month or not. If you're three years out of contract, you paid three years worth of subsidy fees.

 

Additionally, Sprint used to require folks to sign a two-year contract for a BYOD new-line scenario, which is insane. Framily does away with that.

 

To Sprint, it's better because they no longer have subsidies on the balance sheets - which was getting to be a difficult thing with the rising cost of devices. If an iPhone 5S costs 649.99 (which it does, or at least very close), you pay $199.99 for it, Sprint eats $450. If you're an Everything Data Share customer and your line costs $30, well, $450 / 20 months = $22.50/month. Your Unlimited service really only costs you $7.50/month! That's absolute madness. It is telling as to, at least partly, why Sprint has been having trouble making money.

 

Sprint also likes it because you no longer have people trying to weasel out of contracts due to changes in Administrative Fees, or overloading on Roaming Data to try and get kicked off for free, or any other number of ways you can try to (legitimately or no) nullify a Service Contract, but have no regard to an Installment Billing Agreement. How many multiples of $350-$450 did they eat each year from bad rules and people gaming the system? Again, madness.

 

Edit: Just to add - one thing a surprisingly large percentage of people I've spoken to really like about Framily/Easy Pay is, you can pay the device off at any time and just be done with it, but keep the service. I've been asked, in many different ways, "So, if I just get a chunk of cash, can I just pay it off? Because I'm getting my taxes back soon..."

 

Not to mention, the Unlimited Data package for Framily includes a provision similar to the old One Up program, where you can trade in a device after 12 monthly payments and get a new phone every year without a huge increase in TCO.

 

Basically, what I'm saying is, Framily + Easy Pay seems to offer customers more options, and people like that. For the most part. ED customers look at it with disdain because, commonly, it's more expensive per-line (for the above reasons that it's ridiculously cheap) and that they don't want to jump through Framily's hoops to get your bill down.

 

 

As for the topic at hand itself, I can see them pulling something like that. "The new Galaxy S5 on Sprint, only available on Sprint Easy Pay for $0 down and $29.17/month ($150 down and $22.91/month for ASL class customers)". If not for the GS5, they'll drop it for all phones at once.

[utiz4321]

Personally I can't wait until the day comes when there are no more contracts. You want a new device buy one. The only people hurt are the ones still on everything data (ridiculously low priced unlimited which will like see restrictions applied at some point) and the hand set makers. Hand set makers will need to compete more on cost ( although zero present financing will support prices some what). That is a big win for the industry.

[Ascertion]

With subsidies, you keep paying into that subsidy pool, no matter if you're month-to-month or not. If you're three years out of contract, you paid three years worth of subsidy fees.

 

True, but I see Framily is $45/line before taxes and such.  My current ED1500 is ~$50/line w/ subsidy put in.  Even if I wait a few months without upgrading after an upgrade is available, you end up spending a lot more per line/phone if you're on Framily.  You'll actually pay more with 4 N5 on Framily than you would on ED1500 with 4 Nexus 5s after 2 years.  I'm holding onto ED 1500 until I'm forced to move away from it.  But even so, Framily is quite an attractive offer if you don't upgrade every 2 years.

[SeanK_]

If Sprint wanted me to switch to a new plan, they better allow me to join an existing Framily or add plans that justify my family to move. My parents don't use data and we don't need unlimited minutes, so why pay for something we aren't going to use?

[Mondays In Flames]

If Sprint wanted me to switch to a new plan, they better allow me to join an existing Framily or add plans that justify my family to move. My parents don't use data and we don't need unlimited minutes, so why pay for something we aren't going to use?

In the same vein, you could argue that for other plans. I used to pay for 1500 minutes (which was the minimum I could get) and I never used anything north of 300. So why should I pay for 1500 minutes? The reason is that then the plan becomes less about minutes and penny pinching here and there, and just about what you use.

 

Kind of like paying for Internet for your home. They give you unlimited access (at certain speeds of course) but what if you only used 10 Gigs? It makes sense to me, TBH. I hated that I had to pay for 1500 minutes when I didn't use them, but the fact that there are no tiers just makes it nice to know that you will pay a flat fee all the time. It's all psychological.

 

As far as your parents not using data, it's like my mom. She never used data until she got it. So you never know, maybe they will use it.

 

 

-Luis

[uh60james]

The problem with Sprint's approach is that they don't lower your service charge if you use easy pay.  For new customers that can join a Framily with 7+ people it's not a big deal but for those of us on a legacy plan or even on Framily that just can't recruit people for whatever reason to switch to Sprint our bill's will actually go up if we want a new phone.  Unless most people are just too dense to realize this I don't see the end of subsidies being a smart move for Sprint.

[afazel]

They shouldn't lower the cost of the plan if you use EasyPay, but if they included TEP for no additional charge on any phone that is being financed through EasyPay, they would have an instant winner.

[MacinJosh]

The problem with Sprint's approach is that they don't lower your service charge if you use easy pay.  For new customers that can join a Framily with 7+ people it's not a big deal but for those of us on a legacy plan or even on Framily that just can't recruit people for whatever reason to switch to Sprint our bill's will actually go up if we want a new phone.  Unless most people are just too dense to realize this I don't see the end of subsidies being a smart move for Sprint.

 

If you can't recruit people onto your Framily, go make friends with your local Sprint sales person, and they will help you add people to your Framily. I got 5 people that way last week.

 

As for all of you that keep desiring 2 year subsidies: Quit beating a dead horse. It just isn't worth it. I am much happier that I am on EasyPay, because my device financing isn't tied to my phone service, and when I get the extra money, goodbye EasyPay. Paying 400 up front for a 64GB iPhone 5S was never possible for me and then paying out the rest of the subsidy through my plan was not beneficial to me in any way, shape, or form. But now, I can have my cake, and eat it too.

[Fraydog]

Let's not be too redundant here. The end of the subsidies are a good thing - for consumers and for Sprint's bottom line.

[rdcrds]

Well when i rad a few reps on here who said this would end come March or 1 said they have 100% confirmed by April i still took it with a grain of salt. You do not see them post in this thread cause what they said did not happen as of now. But i did drop my ED1500 plan for a few reasons but not because some reps at sprint said the end was coming. Always take what a rep says with a grain of salt.

 

Anyway again i spoke with a higher up rep at sprint in sales and marketing and again was told they are leaning people toward the Framily plans but contract plans are going nowhere. If you need proof just go sign up for a everything my way plan and get locked into a 2 year contract now. They are still selling those plans and if they were trying to really do away with those then that plan would NOT be around still to sign you up for new contracts. So those saying when the S5 comes out they will pull the plug i call BS cause they would not be locking people into new contracts now then a month from now yank them out.

[Rocket87]

Well when i rad a few reps on here who said this would end come March or 1 said they have 100% confirmed by April i still took it with a grain of salt. You do not see them post in this thread cause what they said did not happen as of now. But i did drop my ED1500 plan for a few reasons but not because some reps at sprint said the end was coming. Always take what a rep says with a grain of salt.

 

Anyway again i spoke with a higher up rep at sprint in sales and marketing and again was told they are leaning people toward the Framily plans but contract plans are going nowhere. If you need proof just go sign up for a everything my way plan and get locked into a 2 year contract now. They are still selling those plans and if they were trying to really do away with those then that plan would NOT be around still to sign you up for new contracts. So those saying when the S5 comes out they will pull the plug i call BS cause they would not be locking people into new contracts now then a month from now yank them out.

 

It was march 14th with a possibility of being pushed back to Q2 because of issues with national retailers systems and training. Multiple reps here in different channels and areas have heard this so i guess we will just have to wait and see.

 

And the reason contracts are being still sold is because it takes time to coordinate the change, while Retail is ready telesales will not launch until Q2 and who knows when national retailers will be ready. They will be sold up to the date contracts are stopped just Verizon signed up for unlimited data up til the day they stopped.

 

You can believe us or not but look at every move sprint/the industry has made and its obvious where things are going.

[SeanK_]

In the same vein, you could argue that for other plans. I used to pay for 1500 minutes (which was the minimum I could get) and I never used anything north of 300. So why should I pay for 1500 minutes? The reason is that then the plan becomes less about minutes and penny pinching here and there, and just about what you use.

 

Kind of like paying for Internet for your home. They give you unlimited access (at certain speeds of course) but what if you only used 10 Gigs? It makes sense to me, TBH. I hated that I had to pay for 1500 minutes when I didn't use them, but the fact that there are no tiers just makes it nice to know that you will pay a flat fee all the time. It's all psychological.

 

As far as your parents not using data, it's like my mom. She never used data until she got it. So you never know, maybe they will use it.

 

 

-Luis

My dad uses his iPad for where there is Wifi available and that holds him well, so there is no need to have it, nor my mom as she can careless about using a computer yet alone a smartphone, but she does use the iPad once in a while if she needs to, but its not much to justify the move.

 

Wish there were more options, right now its just bleh.

[newboyx]

It was march 14th with a possibility of being pushed back to Q2 because of issues with national retailers systems and training. Multiple reps here in different channels and areas have heard this so i guess we will just have to wait and see.

 

 

I work for one of the national retailers and have heard the same things.

 

Sent from my Nexus 7 using Tapatalk

 

 

[rdcrds]

It was march 14th with a possibility of being pushed back to Q2 because of issues with national retailers systems and training. Multiple reps here in different channels and areas have heard this so i guess we will just have to wait and see.

 

And the reason contracts are being still sold is because it takes time to coordinate the change, while Retail is ready telesales will not launch until Q2 and who knows when national retailers will be ready. They will be sold up to the date contracts are stopped just Verizon signed up for unlimited data up til the day they stopped.

 

You can believe us or not but look at every move sprint/the industry has made and its obvious where things are going.

 

 

As the reps told me they still sell the everything my way plan which has a contract and sprint has no intention on pulling that plan. If they only offered the Framily plan that would be different but there is nothing in the memo's about the everything my way plans going away. They may stop down the road offering the plans but nobody will be made to leave there plan for framily. Think about it someone has a 4 line ed 1500 plan with contracts etc and sprint says sorry no more contracts you need to move to framily plan.

 

Those people for the most part would say screw it and leave. Many people like the contract and pay a little more and sprint can't afford to lose millions more of people due to making them switch to the framily.

 

At the most they will let those on the ED1500 and ETMY plans stay there and renew and just not push those plans but from what we have seen there is no intention t do away with them.

 

Check the ops post in this thread it spells it out very easy. If there was a legit rumor of them doing this it would have leaked out end of story!

[ahecht]

I'm dreading the end of subsidies because my SERO plan is much cheaper than unlimited data Framily plus device financing, even if I get 7 people somehow. Plus I would lose the grandfathered nights and weekends starting at 5pm and Sprint-to-home features if I switched to Framily.

[marioc21]

I'm dreading the end of subsidies because my SERO plan is much cheaper than unlimited data Framily plus device financing, even if I get 7 people somehow. Plus I would lose the grandfathered nights and weekends starting at 5pm and Sprint-to-home features if I switched to Framily.

 

The Framily plans come with unlimited calling so the 5pm nights and weekends, and phone to home wouldn't matter.

[ahecht]

The Framily plans come with unlimited calling so the 5pm nights and weekends, and phone to home wouldn't matter.

Good point, but my bill would still go up $20/person (assuming $15/month phone financing).

[Mondays In Flames]

The problem with Sprint's approach is that they don't lower your service charge if you use easy pay.  For new customers that can join a Framily with 7+ people it's not a big deal but for those of us on a legacy plan or even on Framily that just can't recruit people for whatever reason to switch to Sprint our bill's will actually go up if we want a new phone.  Unless most people are just too dense to realize this I don't see the end of subsidies being a smart move for Sprint.

It's a bit unrealistic to think that new plans will be as cheap as old plans. As time moves on things get more expensive, it's the way our system works. Think about it, food is more expensive, so is gas, and houses, and cars, and even sodas, even minimum wage is higher. Why shouldn't telecommunication companies do the same? They are not offering you the same services as the legacy plans. Now you have more advanced phones that use more data naturally, you have faster data, and a more reliable network. If you think that you'll be getting the same services at the same price on a different plan then I'm sorry to inform you that the system just does not work that way. Now if you were to tell me that on your legacy plan you still have the same phone and don't take advantage of any of the new features of the plan, then I'll just say more power to ya. But don't expect to get more, and take advantage of newer things without coughing up the dough. Sprint needs to make money, and this is one way they will make it.

 

Also, this is not you personally, but I've seen this rationale many times on this site... So with that said: /rant

 

 

-Luis

[newboyx]

Everyone wants the shiny new triband network, but doesn't want to pay for it.

 

Sent from my Nexus 7 using Tapatalk