AT&T stopping 3rd Party Retailer 2 Year Contracts

[Snn5]

AT&T plans to drop two year contracts through third-party retailers, Apple included | 9to5Mac

Thanks to mama23dogs for the heads up.

Wonder when Verizon will try the no contract Edge or full price phone angle.

[mama23dogs]

Customers over at ATT are already mad and threatening  to jump ship.  As usual, what makes business sense to one company, may benefit another.  Customers on small data plans and low discount get a cheaper price with subsidy purchase.

I Was wondering how Verizon folks feel about it?

[Heretic1989]

I can only afford a phone with a new 2 yr activation.

[mama23dogs]

I Don't see the benefit of 2 year subsidy.   If you are buying a flagship, you are to shell out an upgrade fee, plus $200 down payment and the line fee is $40.  

INstallment purchase only requires the the tax up front.  Since I get the $25 discount, the payment is pretty much a wash.

[Heretic1989]

I've never paid more than $100 for one single phone. I've paid $100 for two phones. As a matter of fact, i wait for end of life phones. Either bogo or `free´ with new 2 yr contract.

For you and everyone else that have deep pockets. More power to you.

[Weth]

But, you see, you didn't pay $100 for 2 phones.   You paid, $100 plus $80 upgrade fees, and at least $720 extra in monthly access fees (assuming More Everything).  The cheap deal really is just smoke and mirrors. 

Contract prices will be going away.   The Edge change requiring 100% payoff is part of the process completing separating phone purchase from service. 

[mama23dogs]

ON my wish list:

Not having to explain that very fact, once a week, to someone who crawled out from under a rock.

If I write the, "you have always paid for your phone..." Paragraph one more time, it will involve primal scream therapy.

[Tidbits]

You understand that the cost of those phones are tied into the price of the plans right?

Back in the 90s carriers were sued and carriers said that fact. So you may think you paid $100 for 2 phones, but you actually paid full retail price for those phones. You just didn't see it separated. That's the reason why termination fee has diminishing returns after you completed time.

T-Mobile with their "uncarrier" movement just made it more transparent over keeping it hidden.

[#9]

mama23dogs wrote:

Customers over at ATT are already mad and threatening  to jump ship.  As usual, what makes business sense to one company, may benefit another.  Customers on small data plans and low discount get a cheaper price with subsidy purchase.

I Was wondering how Verizon folks feel about it?

Last I heard over 65% of upgrade are done via Next anyway. Personally I think it's time to get rid of 2 year contracts. Where are these people going? Not T-Mobile. Sprint has already said they're dumping 2 year contracts by the end of the year.

[#10]

Heretic1989 wrote:I can only afford a phone with a new 2 yr activation

Any reason why you can't save up over 24 months? If you sign a 24 month contract TODAY you KNOW you have 2 years before you're next upgrade. Put $10-$20 a month away. If you can't afford to pay full price for  device then you need to keep your devices longer than 2 years until you can. This is the future.