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So, let's talk about subsidized vs non-subsidized devices.


Ascertion
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Since T-Mobile's uncarrier events started, the mobile industry here in the states has changed it's normal 2-year contract agreement to no contract, but essentially made it so you must pay off your device in the end.  As a result, people were no longer locked into a contract for 1-2 years but they financed the device separately from the bill.  This is exactly how it works in other countries.

 

However, people were also discussing that mobile plans would go down in price to offset the cost of the device (since the device is no longer subsidized.)  I'm grandfathered into the ED 1500 plan with 4 lines which is roughly ~$50/line.  This includes device subsidy.  Now you take any new plan (even family plans), with four lines, it comes to roughly the same price ~$45-50/line but now you're financing the device separately, so you're adding another ~$20 or so a month for the phone financing.

 

I thought the prices were supposed to adapt to be cheaper since the phones were no longer included in the actual mobile plan payments, but it seems like this was an excuse for carriers to charge more?

 

The way I see it, you're still bound by "contract" because you can't do anything until you pay off the device so in theory contracts still exist.  

 

Is my logic flawed?  I know cellular service is becoming more expensive so I'm holding onto my ED 1500 as long as I can. lol

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No your logic is not flawed, I've been saying the same thing since the whole 'no contract' thing started becoming big.

 

In general, the only times the new plans save you money, is when your phone is paid off (or paid in full separately).

 

That said, the new easy pay iphone plan is better than the 2 year subsidized plan advertized next to it.

 

http://s4gru.com/index.php?/topic/6319-marcelo-claure-town-hall-meetings-new-family-share-pack-plan-unlimited-individual-plan-discussion-thread/page-79&do=findComment&comment=362177

 

But that does not take into consideration older plans and plans with good discounts.

 

speaking of which;

 

my current single line ed450 plan with discount is about $68/month.

 

I could switch to the $60 plan and save $8 bucks a month (depending on where the discount + tax difference lies), but them I am on the hook for another $10 to $30 a month depending on what phone I easy pay with.

 

or just keep my current device(s) and go with potentially slightly lower bill.

 

if I upgraded to the iphone 6/16gig @ $199 under contract with my current plan, vs the easy pay + $50 plan;

 

$68/month (all in with taxes etc) + $199 down

vs

$50/month (plus taxes) + $27/month + ~$52 down

 

my bill goes up ~$10 month until phone is paid off, but I am saving ~$150 cash up front.

 

that ~$10 month * 24 = +$240, which is more than the ~$199 upfront cost (well probably after sale tax it will be even closer), but if I keep the phone after 2 years, it becomes cheaper by $27/month saving me $640 every 2 years.

Edited by dedub
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No your logic is not flawed, I've been saying the same thing since the whole 'no contract' thing started becoming big.

 

In general, the only times the new plans save you money, is when your phone is paid off (or paid in full separately).

 

That said, the new easy pay iphone plan is better than the 2 year subsidized plan advertized next to it.

 

http://s4gru.com/index.php?/topic/6319-marcelo-claure-town-hall-meetings-new-family-share-pack-plan-unlimited-individual-plan-discussion-thread/page-79&do=findComment&comment=362177

 

But that does not take into consideration older plans and plans with good discounts.

 

speaking of which;

 

my current single line ed450 plan with discount is about $68/month.

 

I could switch to the $60 plan and save $8 bucks a month (depending on where the discount + tax difference lies), but them I am on the hook for another $10 to $30 a month depending on what phone I easy pay with.

 

or just keep my current device(s) and go with potentially slightly lower bill.

I was highly optimistic about possible savings once the contract thing was out of the picture, but I've grown fond of the contract model, nothing better than picking up a new device at Bestbuy for ~$50-$100 to take home and that's it.

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First off, the duopoly isn't really deviating from the contract model that much. Verizon, if anything, is doubling down on being what they are. AT&T is throwing in Next but in lots of cases that amounts to a price increase.

 

But I'm still not clear what Sprint's end game is. Do they want to be like T-Mobile, or do they, in their heart of hearts, still wish they could be like the two Goliath's?

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The whole thing means that they still get their money from us one way or another. In some ways it was cheaper to pay $100 at best buy and then an etf when compared to full price of a phone.

 

They only way non subsidy works is when they start discounting phones.. Paying $6-800 is going to bring havoc on bills if you 0 down... Even then $200 down is just like a 2 yr using different language.

Basically, nothing has changed, its a Jedi mind trick that many of us bought.

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I had hoped that the nexus 5 would be last phone, but the spark issues + relatively weak battery (esp when compared to note2 or m8), is making hope for an updated version.

 

the m8 + google now launcher = almost the best of both worlds, although I still like the size and weight of the n5 better than the m8.

 

If I *knew* that I would no longer buy new phones, I would switch to one of the new plans, but knowing that something better is always going to come out, makes me stick with the old ways, at least until the new ways are *really* better and not just the *illusion* of better.

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Let's talk about subsidy,

Let's talk about you and me,

Let's talk about all the good things and the bad things that may be,

Let's talk about sub-,

Let's talk about subsidy.

 

AJ

Something tells me that is a song I should know but can't place who sings it. lol

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If you bring your own device, the new plans are cheaper. If you still want new phones, stay on everything data.

 

I have been pleased enough with my used Optimus g but I always felt I was paying too much on my monthly bills since I wasn't using the upgrade. Now it feels a lot more "fair".

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The whole thing means that they still get their money from us one way or another. In some ways it was cheaper to pay $100 at best buy and then an etf when compared to full price of a phone.

 

They only way non subsidy works is when they start discounting phones.. Paying $6-800 is going to bring havoc on bills if you 0 down... Even then $200 down is just like a 2 yr using different language.

Basically, nothing has changed, its a Jedi mind trick that many of us bought.

 

 

This is exactly it.  In fact, it may be worse.  You are now fully purchasing the phone over 2 years or trading it in early for an upgrade all the while paying more per month than you would with a subsidized phone.  My friends on T-mobile are jumping to new phones every 6 months and it seems foolish to me.  They never outright own their phone and are constantly in a repayment cycle.

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This is exactly it. In fact, it may be worse. You are now fully purchasing the phone over 2 years or trading it in early for an upgrade all the while paying more per month than you would with a subsidized phone. My friends on T-mobile are jumping to new phones every 6 months and it seems foolish to me. They never outright own their phone and are constantly in a repayment cycle.

Honestly, the Jump crowd would be better off paying for the phones outright. Especially if they're Apple consumers. Those phones hold residual value well.

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To me i saved money by using Easy pay on my nexus 5. But for most people using the zero down and 24 payments your bill will go up. I always say pay what you would of played contract wise down usually around $99, and then pay the $15 -$20 extra a month and benefit from yearly upgrades. That is the only benefit i see of it, yearly upgrades.

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I feel the same way as Ascertion. Matter of fact I got my ED1500 plan after they no longer offered it, by taking over the terms of service that someone else did not need it anymore.

 

This is my spin on things. We now have more choices. Plans that work for different people. Yes, prices are higher now if you went with a 2 year contract today, than if you had a ED1500 plan from a year or 2 ago. But that is life, and prices rise. I also hear people complain that they have been a customer for a long time and Sprint should do something for you.  And the way I see it, they are. By letting me keep my old plan without raising the price or getting rid of the subsidy phones like Verizon. 

 

So thank you Sprint for the choices. Thanks for honoring the old plan and prices. And keep up the work of building a better network. Your time to shine will be soon.

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I am almost willing to bet tmo started as a cost saving initiative and soon others caught on.  $100 down, pay etf, go to att or sell it on ebay/craigslist. It was actually a smart move. Lets think back,  remember when you filed an insurance claim and it was $25 or$50??   Some were zero.

 

Remember when etfs were $125-150??  It was cheaper to use one of those as an "out"  Back to modern day $350 etf after $200 down and a couple of months--- they got there money for the phone.  Basically introducing the non subsidy was a way to secretly closing loopholes in the cellular business that were probably costing them big money, while making us think "we won" something from them.. 

 

Now we look at the ridiculous prices of cell phones to factor in OR pay the extra $15 a month AFTER we pay access fees????? which equals a loss for us. 

 

So again, the $15 subsidy is now called an "access fee" PLUS we pay for the entire phone at whatever price they want to sell it for.

so its a win-win for the carriers. At least sprint is giving more in data than the others. But it would be great if they waived access fees on tabs or hotspots. 

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Seems to me most of the new carrier non-subsidized plans are a morass of fine print and what the ad's "don't" say.

 

Verizon's More Everything with Edge for a family of 4 (like mine) with 10GB shared says I save $100 versus without ($260 v $160)...but in order to get that I have to shell out for 4 brand new phones full price (there's been debate I've heard about qualifying with a non-VZ purchased device so say $2000+ up front for 3 GS5 and an M8) or pay about...wait for it...wait for it....$120 or so per month on the monthly plan. So the "cheaper" way actually costs more...and $50 more than I pay now with UNLIMITED data.

 

Even Sprint's new Family Share with 22GB (incl bonus) works out the same way. $100 + $60 for an Easy Pay plan, plus the $2k+ up front or $120/mth for the devices....and I still lose my UNLIMITED.

 

Just don't make no sense to me.

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This is all assuming you need a flagship $600 phone.

 

With very capable phones like the Aquos Crystal and Desire 510 coming to Sprint, the non subsidized plan model starts to make more sense.

 

ED1500 w/ 4 lines = $210 /month           4 Desire 510 = $0 on contract

 

                          24 Month cost = $5040

 

20gb family share pack w/ 4 lines = $160 /month       4 Desire 510 = $860 w/ tax

 

                          24 Month cost = $4700

 

It isn't a ton of money you are saving, and you do lose unlimited data, but for some people it will be the best option.

 

Also, if you can keep your phone for longer than 24 months, then the savings really start to show up.

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Yup, everything after ED1500 has been a price increase for my family, which is why we've stayed with it.

 

And don't forget, most of the time you don't pay $200 for the top of the line phone. Amazon is always significantly cheaper, and places like Target always have fantastic discounts during the holidays. Last year, even the Iphone was discounted via gift cards as part of the purchase.

 

While the post above me shows you do save money if you elect a lower cost phone....you sure dont with the iPhones and the Galaxies that are still ~$700 off contract. And that's what most people want anyway. Don't ask me, ask the sales numbers.

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