is AT&T getting rid of contracts entirely?

[gorcorps]

I just got a panicked call from my mom who is on AT&T with my siblings. My brother went to the ATT store today, and the guy there told him that starting on March 1st there will no longer be contracts. He's saying there will no longer be phone subsidies of any kind, and that from now on you'll be buying your devices for full price with the option of spreading that cost out throughout your monthly bill.

Now, I know that ATT started a program in this vein, but this news is that EVERYBODY will be contractless after this time. I searched around online and couldn't find anything about it.

So is this just an ATT employee that doesn't know what he's talking about (or having fun at my bro's expense) or did he actually leak some info that doesn't seem to have spread yet? Or maybe there IS news about it and I just can't find it.

 

[Zstream]

I just got a panicked call from my mom who is on AT&T with my siblings. My brother went to the ATT store today, and the guy there told him that starting on March 1st there will no longer be contracts. He's saying there will no longer be phone subsidies of any kind, and that from now on you'll be buying your devices for full price with the option of spreading that cost out throughout your monthly bill.

Now, I know that ATT started a program in this vein, but this news is that EVERYBODY will be contractless after this time. I searched around online and couldn't find anything about it.

So is this just an ATT employee that doesn't know what he's talking about (or having fun at my bro's expense) or did he actually leak some info that doesn't seem to have spread yet? Or maybe there IS news about it and I just can't find it.

Another money grab. They won't discount or reduce the cost of the plan by doing this.

 

[gorcorps]

Another money grab. They won't discount or reduce the cost of the plan by doing this.

Not sure how you can say this given that their current NEXT program prices are lower than their contract prices if you bring your own phone. You'll be paying more if you add monthly payments for a new phone though.

 

[luv2liv]

good! subsidies hide true cost of phones/plans. once gone, people then can truly compare apples to apples. as of now, its very hard to compare rates.

 

[bearxor]

Another money grab. They won't discount or reduce the cost of the plan by doing this.

AT&T already reduces your monthly plan by $15 if you have a phone on AT&T Next or if you bring your own device. That makes the AT&T Next plan not a TERRIBLE deal, as you're only paying between $10-20 for a phone, if you compare it to getting a plan with a subsidy.

Now, this move is inevitable. I suspect AT&T will be the next one to do it, but I didn't expect to see it until way later this year or perhaps next year.

I won't be shocked if this happens, especially given AT&Ts recent over (like offering a Next upgrade for anyone six months after they signed a contract) but it will be a sign that AT&T is getting more and more desperate.

 

[Joe1987]

I don't think ATT will kill the subsidized plans, just yet.

Salespeople are the absolute worst people to get this kind of info from, they typically don't know jack shite about anything.

 

[blairharrington]

Contracts are going nowhere at AT&T. That sales rep is a complete moron.

 

[Sheep]

If this happens, it's not going to be for awhile and certainly not until there's plenty of data about how well it's working for T-Mobile. A huge company like AT&T simply doesn't move that fast.

 

[Suspicious-Teach8788]

Is the only way to get a single plan to get shared data now?

Also I don't see how these NEXT plans are great considering you used to be able to do $39.99 + $30 data for $70.

 

[dagamer34]

Is the only way to get a single plan to get shared data now?

Also I don't see how these NEXT plans are great considering you used to be able to do $39.99 + $30 data for $70.

Those plans didn't have unlimited minutes or text, which granted, some people don't really need. Of course, now they give that stuff away since it's not what costs money to provide really anymore.

 

[sgrinavi]

Seems like a matter of semantics to me, I suppose they can change their rates at will since you're no longer in a contract, but other than that it's business as usual .

 

[blairharrington]

Is the only way to get a single plan to get shared data now?

Also I don't see how these NEXT plans are great considering you used to be able to do $39.99 + $30 data for $70.

I believe so. But you can also pay $15 less a month if you bring your own device.

Those numbers you quote didn't include a text plan and it was really expensive per text without one.

 

[crashtestdummy]

I just got a panicked call from my mom who is on AT&T with my siblings. My brother went to the ATT store today, and the guy there told him that starting on March 1st there will no longer be contracts. He's saying there will no longer be phone subsidies of any kind, and that from now on you'll be buying your devices for full price with the option of spreading that cost out throughout your monthly bill.

Now, I know that ATT started a program in this vein, but this news is that EVERYBODY will be contractless after this time. I searched around online and couldn't find anything about it.

So is this just an ATT employee that doesn't know what he's talking about (or having fun at my bro's expense) or did he actually leak some info that doesn't seem to have spread yet? Or maybe there IS news about it and I just can't find it.

I doubt it'll be that soon (would love it if it was), but I would tell her that it's unlikely that if they did this that she'd notice much difference. She'd have to pay for the phone up front (or finance it a la T-Mobile), but her monthly rates would go down, and it'd mostly be a wash unless she bought a cheaper phone or kept her current one.

 

[antef]

Is the only way to get a single plan to get shared data now?

Also I don't see how these NEXT plans are great considering you used to be able to do $39.99 + $30 data for $70.

Correct, they realized increasing numbers of people would no longer need texting, so instead of allowing you to opt out to save money, they just priced everything at the same levels it used to cost to get unlimited. So if you don't need it, too bad you're paying for it anyway.

Those plans didn't have unlimited minutes or text, which granted, some people don't really need. Of course, now they give that stuff away since it's not what costs money to provide really anymore.

They don't give anything away....compare the price of a mobile share plan for an individual with 2 GB data to what it used to cost under the old plans to get 400 minutes + unlimited text + 2 GB data. They're the same. All they did was remove the ability to choose anything less than unlimited minutes and texting and the prices reflect that. This is how they protect themselves from declining revenue as people begin to need these things less - just charge you for it anyway. When people say minutes and texting are now "free," you are just thinking exactly along the lines they wanted you to. Look at your bill - it has only gone up.

There is no better example of corporate greed, corruption, and a lack of a competitive free market than in the US postpaid telecom industry. Vote with your wallet - stick with prepaid.

 

[Suspicious-Teach8788]

The issue is that incorporating subsidies into the pricing has confused us and there's no way to know what the true cost of service is. Now you supposedly save $15/month by BYOD, but is that really accurate? I'm pretty sure those who BYOD are still subsidizing those who get subsidies. This horrible model has screwed us over, and that's why there's so much outrage that we have to pay for unlimited voice and text now.

 

[Suspicious-Teach8788]

Well, there's a new shared plan coming soon which is pretty good if you BYOD.

If you have a family of 4 or 5, this is pretty solid. Even at 3 I think it's decent because of the 10 GB you get:

http://www.engadget.com/2014/02/01/att-shared-family-plan/

 

[bearxor]

New plan from AT&T looks great for me. I'm already on the 10GB share plan with 2 phones and an iPad, I pay around $175/mo after taxes.

If this works the way I THINK it works, then it would be 100(data)-21 (discount)+15(iPhone)+15(iPhone)+10(iPad)+10(taxes est)=$129. And I get out of my two year contracts? Probably be looking to switch to this next week. I'm fine buying a new phone outright every year or doing an AT&T next payment for one.

 

[Suspicious-Teach8788]

I think the lower prices are great, but would you be better off selling off 2 iPhones every year and buying a phone of your choice?

 

[bearxor]

It just depends. I've got my upgrades staggered so that my wife and I are eligible each year and I typically use the upgrade and then pass down my phone to her. But this last time she's said she didn't want a phone larger than a 4S, so I sold my 5 when I upgraded. I don't expect to get anything for a 4S later this year.

But yes, if we both were on newer phones, then upgrading would only cost $200-300 per line after selling the previous years devices.

Honestly, this basically kills any interest I had in going to T-Mobile, so I suppose AT&T's plan worked. This cost is actually a bit cheaper for me than moving to TMobile and getting new phones with significantly better coverage. I hope TMobile keeps gaining subscribers, though, to make AT&T a little more desperate.

 

[techtechie]

If this happens, it's not going to be for awhile and certainly not until there's plenty of data about how well it's working for T-Mobile. A huge company like AT&T simply doesn't move that fast.

i was gonna say isnt that what tmobile has been doing?

 

[thedosbox]

If this happens, it's not going to be for awhile and certainly not until there's plenty of data about how well it's working for T-Mobile. A huge company like AT&T simply doesn't move that fast.

http://www.engadget.com/2014/01/28/att-next-growing/

At present, 1.5 million subscribers have signed onto Next. Again, this is a small number compared to the company's total customer base (there are now 110 million subscribers, with nearly 73 million of those being postpaid), but what's interesting is how quickly that number has grown. According to the numbers, 1 million people signed onto Next just in the past quarter; this means that only 500,000 subscribers -- one-third of its current total -- were activated in the three months following its July launch.

The fourth quarter is a huge one thanks to holiday sales, but AT&T is quite optimistic that this is the way forward for the company.

 

[Suspicious-Teach8788]

I'm really confused what the difference between Mobile Share and Mobile Share Value is. If you get 10gb, isn't that a no brainer? It's cheaper for anyone who wants 2-5 lines. Not sure why they keep the old one around then.

Edit: And wow AT&T Next is just like a scam. They advertise $25/month but you end up having to pay $32.50 / month if you do the AT&T Next 12 plan.

Why not just make all smartphone plans $25/month and depending on whether you want a subsidized phone every 12, 18, 24 months, or BYOD, you pay an additional device fee. Done. It's deceptive to advertise the 2 year contract as $40/month for a smartphone with no extra installment charges, but the Next plans as $25 / month. It's even more confusing when the device installment plan is paid over 20 months. So essentially if you're on a AT&T Next 12 plan, and you got a 5s at launch, you could upgrade to your iPhone 6 (speculating Apple's release schedule), and you will still be paying for that 5s for another 8 months. Do you pay another $30.25/month for the iPhone 6? So essentially you're paying $15 / month + $30.25 for the iPhone 5s + $30.25 for the iPhone 6?

 

[bearxor]

I'm really confused what the difference between Mobile Share and Mobile Share Value is. If you get 10gb, isn't that a no brainer? It's cheaper for anyone who wants 2-5 lines. Not sure why they keep the old one around then.

Edit: And wow AT&T Next is just like a scam. They advertise $25/month but you end up having to pay $32.50 / month if you do the AT&T Next 12 plan.

Why not just make all smartphone plans $25/month and depending on whether you want a subsidized phone every 12, 18, 24 months, or BYOD, you pay an additional device fee. Done. It's deceptive to advertise the 2 year contract as $40/month for a smartphone with no extra installment charges, but the Next plans as $25 / month. It's even more confusing when the device installment plan is paid over 20 months. So essentially if you're on a AT&T Next 12 plan, and you got a 5s at launch, you could upgrade to your iPhone 6 (speculating Apple's release schedule), and you will still be paying for that 5s for another 8 months. Do you pay another $30.25/month for the iPhone 6? So essentially you're paying $15 / month + $30.25 for the iPhone 5s + $30.25 for the iPhone 6?

When you trade the 5S in, the payment plan stops and you start paying for the 6. It's basically a device rental fee if you keep trading it in every year.

 

[Engineer]

Anyone think Verizon is going to follow AT&T (TMobile?) on this one? I'm getting sick of getting raped on Verizon for 3 smartphones, 1 dumb phone and 4GB of data ($245 per month after all taxes). The problem is buying new phones under AT&T is expensive since I can't take my current phones to them (that I know of).

(Disclaimer: I'm very illiterate when it comes to cellphone structure from carrier to carrier - be gentle).

 

[Trombe]

I think some people abused this by signing up/renewing eligible lines the day of announcements on regular Mobile Share rates and got switched over to these Value rates. If I were on AT&T I would probably do the same thing. The 10GB minimum though just to qualify for Value is IMO excessive for most families. Any data chunks lower than that, you might as well keep going subsidized.