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Sprint to end 2 Year Contracts

JimBob

By JimBob
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irev210
irev210

It's like when any company offers the "friends and family" rate to everyone or an expanded pool of people as a promotion.  You obviously disagree with it, perhaps you look at the name of the promotion

irev210
irev210

SERO was open to anyone and everyone for years.   http://mcguireslaw.com/2014/09/03/sprinting-to-the-finish-line/     On top of other very direct offers, the VP of Strategy at Sprint, the famous

banananuts87
banananuts87

Per Marcelo on Twitter: "@marceloclaure: @HRozewski long Term Customers can choose any way they want to buy a phone, lease,subsidy or installment billing. We believe in choice"   Looks like us contr

RedSpark Member Level: LTE Advanced

RedSpark

Posted
Posted

 

Wow... So what does this mean for people on Legacy Plans: Everything Data/Unlimited My Way ?

 

Those plans literally subsist on 2 year contracts or a Leasing with a Loyalty Service Credit.

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jamesinclair Member Level: 4G WiMax

jamesinclair

Posted
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Wow... So what does this mean for people on Legacy Plans: Everything Data/Unlimited My Way ?

 

Those plans literally subsist on 2 year contracts or a Leasing with a Loyalty Service Credit.

 

I have a legacy plan.

 

They extended my contract from 20 to 24 months, which IMO was a violation of the terms but whatever, thats another discussion. My renewal is September 1st.

 

If I am unable to get a 2-year contract on September 1st I will be very, very upset. Especially after the football was moved away from me.

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jamesinclair Member Level: 4G WiMax

jamesinclair

Posted
Posted

From the article:

 

Sprint began offering a lease option last year, and in an interview Monday, Sprint Chief Executive Marcelo Claure said the carrier will move entirely to that model by the end of the year. That means paying full price or leasing will be the only ways to acquire a new phone from the carrier. Sprint says that 51% of customers who purchased a new phone last quarter used its lease option.

 

 

By end of the year they better mean December.

 

If 51% are leasing then 49% of customers are potentially about to become annoyed and inconvenienced. Is that what Sprint really wants to do right now?

 

I dont think Sprint is in a strong enough position to take a dump on longtime loyal customers. Verizon can take a piss on their customers and they will beg for more. Sprint is not Verizon

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lilotimz Member Level: LTE Advanced

lilotimz

Posted
Posted

From the article:

 

 

 

By end of the year they better mean December.

 

If 51% are leasing then 49% of customers are potentially about to become annoyed and inconvenienced. Is that what Sprint really wants to do right now?

 

I dont think Sprint is in a strong enough position to take a dump on longtime loyal customers. Verizon can take a piss on their customers and they will beg for more. Sprint is not Verizon

There's easy pay financing which is not considered leasing.

 

Sent from my Nexus 5

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kojitsari Member Level: 4G WiMax

kojitsari

Posted
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What is the difference? Easy Pay you keep, lease you must return?

Think of Easy Pay like putting the phone on your credit card (with lower interest rates thankfully). You pay it off monthly and get to keep the phone when you're done.

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PythonFanPA Member Level: LTE Advanced

PythonFanPA

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When they mean leasing or full price, I think that they're referring to Easy Pay, Leasing, or Full Price. Technically, Easy Pay is paying full price but you are just paying it in installments.

 

Yeah, I was going to point out that as well.  Consider the source to some extent....an article on WSJ vs FierceWireless or some other wireless industry or even tech site source isn't necessarily as likely to address every minute detail possible.

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lilotimz Member Level: LTE Advanced

lilotimz

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What is the difference?

 

Leasing is you don't own the phone at all. You pay a monthly reduced price and have to give the device back in perfect condition to Sprint or they will charge you the full price (or you can choose to buy it at full price then). 

 

Easy pay is paying installments onto phones full price. You completely own the phone once you pay it off (either at the end of whenever inbetween) and can do whatever the hell you want. For a flagship phone like the S6 it'll be like $27 a month compared to like $20 a month if one wants to lease. 

 

So in the end if one leases say a S6 for $20 a month they'll be paying $480 at the end of 2 years with the option to pay $100+ more to buy out the phone if it's in terrible condition or person likes it. Else they can just turn it in and get a new device.

 

Easy pay is you're paying for the entire price of the phone. At the end of the installements, you've paid off the entire phone and it belongs to you. You don't have to turn it back into Sprint and keep the phone in good condition since at the end of the installments you'll paid out ~$500-600 which is the full price. 

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PythonFanPA Member Level: LTE Advanced

PythonFanPA

Posted
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Also leasing is cheaper than Easy Pay.

 

I'll admit my ignorance on the front end, but while this is technically true, is it really that much of a difference in the case of every device?  My impression only relates to the few phones I've seen the differential on between the two, but in those cases there seems to be maybe $2-3 a month difference at most...which to me seems so insignificant as to wonder what the real world upside is to leasing vs. ownership in the end.

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kojitsari Member Level: 4G WiMax

kojitsari

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If this means a $15/month+ increase per line on my plan, I'm out. The main reason I stuck with Sprint is because of it's price to performance ratio.

 

Sent from my M8

I'm hoping if they force legacy plans off subsidized phone prices they'll offer a ~$15-20 credit like they did to get you to lease,  although personally I mean My Way because the ED plans are still a good deal even if you have to tack ~$20 on top of them.

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nick Member Level: 1x Advanced

nick

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I think average sprint user will be ok with this, lease the phone pay us nothing up front, return the phone to us in a year or two and we will let you walk out with a new one, again paying nothing up front.  sometimes you just have to move forward, this is the direction all the wireless carriers seem to be heading, I would think people on legacy plans will be encouraged or offered an incentive to change to the new way, but not required.  

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Fraydog Member Level: LTE Advanced

Fraydog

Posted
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Fabian, if you're reading this...  B)  B)  B)  B)

 

Seriously, who didn't see it coming. Leasing has already been calculated to be cheaper on Sprint's own website.

 

http://www.sprint.com/landings/leasing/index.html?ECID=vanity:lease#!/

 

Sprint's been laying the groundwork for a while. 

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cletus Member Level: 4G WiMax

cletus

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The only hitch in this new offering is this:

 

Do you have to pay the $36 activation fee for each phone? So, if my wife gets an Iphone 6 now ($36) and then an Iphone 6s or whatever ($36).. that is about 10 months of the difference between $22/mo and $15/mo. 

 

Just food for thought. I have a rather large corporate discount at Sprint so I will have to look if that includes waived activation fees as well.

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jreuschl Member Level: 4G WiMax

jreuschl

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If they don't offer contract phones for older plans, then the SERO plan (which I have) becomes much less attractive.

 

Yeah, I know, Sprint probably doesn't make much on me, anyway...

 

I don't see the harm in offering a choice.  Maybe Sprint would be the last one to offer contracts.  Pick a contract or pick a lease, your choice.  You can hate contracts but no harm in offering that option.

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nick Member Level: 1x Advanced

nick

Posted
Posted

The only hitch in this new offering is this:

 

Do you have to pay the $36 activation fee for each phone? So, if my wife gets an Iphone 6 now ($36) and then an Iphone 6s or whatever ($36).. that is about 10 months of the difference between $22/mo and $15/mo. 

 

Just food for thought. I have a rather large corporate discount at Sprint so I will have to look if that includes waived activation fees as well.

I think activation fees need to die, especially if your leasing the phone... if your a member of a credit union or AAA you can have your activation fee waived by sprint (plus some other perks) most wireless carriers, or any company will happily waive a activation fee if you call them and ask real nice any ways..  

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joshuam Member Level: eHRPD

joshuam

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A month or so ago...Marcelo was bragging on Twitter to Legere that Sprint proudly offered many ways to buy a device...on contract, easy pay, or leasing. I guess things have changed.

 

Me personally? I'm glad to do away with contracts.

 

Sent from my SM-N910T using Tapatalk

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cletus Member Level: 4G WiMax

cletus

Posted
Posted

I think activation fees need to die, especially if your leasing the phone... if your a member of a credit union or AAA you can have your activation fee waived by sprint (plus some other perks) most wireless carriers, or any company will happily waive a activation fee if you call them and ask real nice any ways..  

I called in and they waived the first activation fee (for when I get to the store) and told me to call in when I get the next iPhone to waive the other one.

 

Super easy conversation and no hesitation on their part. Good job Sprint customer care.

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