RIP Contracts

[cpacini]

You're wasting your money if you're waiting two years. By that point your phone should be pretty much paid off and you should sell it, especially if you have an iPhone.

The best analogy I can put cellphones into now is leasing a car. With T-Mobile's jump, and 0 down, you get the most bang for your buck if you swap phones every 6 months when you're allowed to.

That's fine, but most people don't actually do that, they go but a new phone when their contract is up. My point was that switching from the 2 year contract model to 24 month financing is not going to change that behavior or significantly impact new phone sales.

 

[ImpulsE69]

Use old sim card in new phone. Voila!!!
You can also cut micro sim to nano sim, and use adapter vice versa.

Ah, my old phone had no sim card

 

[NutBucket]

Yeah, given 0 down and 0 interest you might as well go for the latest and greatest as often as possible unless you intend to keep a phone going for more than 2 years.

The fact there are multiple SIM formats is very annoying. I hate BS like this.

 

[NutBucket]

Ah, my old phone had no sim card

You could still buy a phone and have it activated...just no discount. The only restriction was on subsidized upgrades. Although, I know at some point you couldn't go from a 3G UDP to a 4G UDP anymore.

 

[openwheel]

Ah, my old phone had no sim card

Get a cheap used phone with sim card and have Verizon activate it. See the trend? There is a solution to every problem here.

I am still getting unlimited data while upgrading phones every two year at discounted prices. The answer is out there. People just gave up too early.

 

[NutBucket]

However, if he only has a 3G phone (likely if it has no SIM), he can't "upgrade" his UDP from 3G to 4G. That ship sailed years ago.

 

[bigaug]

What happens is a bunch of people much less educated and knowledgeable get five new iPhone 6s at $0 down after the Edge/Next/Jump program is thoroughly explained to them. They then call customer service a month later when they get their bill with $150+ in charges for phones and wonder what's going on and how they can "go back." I work for one of the major carriers. Your mind would be blown by a lot of these people.

 

[NutBucket]

I would. People are morons....

 

[s44]

However, if he only has a 3G phone (likely if it has no SIM), he can't "upgrade" his UDP from 3G to 4G. That ship sailed years ago.

You sure? I don't remember seeing that on HoFo.

 

[RockinZ28]

Can you not upgrade anymore or what? Thought it said the 13th?

I tried the day this was announced, but whenever I went to upgrade device on vzw.com, it just said "retrieving account info" or something and never completed.

Now it is still doing it. If I just go straight to the shopping page, when I'm logged into my account, it refuses to add anything to my cart. Says "Content unavailable, please try again or contact for assistance."

If I go incognito, it lets me add shit to my cart and start the checkout process...

 

[NutBucket]

I was able to upgrade this last weekend. Transfered two upgrades from UDP to tiered and bought new phones. I see no reason you couldn't do it unless the site was being hammered when you tried.

You sure? I don't remember
seeing that on HoFo.

I seem to recall this being the topic of discussion a few years ago but I could be mistaken.

 

[RockinZ28]

I was able to upgrade this last weekend. Transfered two upgrades from UDP to tiered and bought new phones. I see no reason you couldn't do it unless the site was being hammered when you tried.


I seem to recall this being the topic of discussion a few years ago but I could be mistaken.

I was unable to get through to the upgrade page ever since the announcement.

Funny that I load it up today and it instantly takes me to the upgrade page, but now transfer upgrades are no longer shown... FU Verizon.

 

[Cakefish]

I don't understand the way this whole US system works.

So I hear that contracts are no more in the US, but then... they are, because I see people commenting on how you can still buy a device subsidised and then pay back the cost monthly with interest. Isn't that the exact same darn thing? I'm so confused.

 

[Midwayman]

I don't understand the way this whole US system works.

So I hear that contracts are no more in the US, but then... they are, because I see people commenting on how you can still buy a device subsidised and then pay back the cost monthly with interest. Isn't that the exact same darn thing? I'm so confused.

There are still a few companies that have traditional contracts. However the most common model seems to be going to that you pick a plan and a phone. The cost of that phone gets broken down into monthly payments over 18-24mo. You can leave any time, but have to pay the balance on the phone at that time.

Sometimes there is a downpayment, sometimes not. I haven't heard of them charging interest, but you are paying full MRSP for the phones.

 

[cronos]

I don't understand the way this whole US system works.

So I hear that contracts are no more in the US, but then... they are, because I see people commenting on how you can still buy a device subsidised and then pay back the cost monthly with interest. Isn't that the exact same darn thing? I'm so confused.

Not 'no more'. There are still contracts in some carriers. The new trend that you've been hearing is how in some carriersthe previous subsidy model is converted to separate 'plan' + 'phone payment'. The plan stands on itself and only pays for the minutes/txt/data (which allows people also to BYOD, or pay full price). For people who don't BYOD and don't want to pay the phone full price, there's a separate phone payment component where you pay installments monthly (just like any other credit accounts). In this system, there's no more classic 'ETF', as the plan itself doesn't have any contract commitment, so they can leave any time they want.

The person, however, does have to fulfill their payment on the phone, if they took advantage of the payment plan, and do not own the phone outright until it is paid in full (again, just like every other things you pay monthly installments for).

I always dislike carriers selling phones and subsidizing and contract, and would rather those go away completely, but I think this is a really good compromise between the old system and the way I think how it should be.

 

[Cakefish]

I see, thanks for the explanations, both of you. I think I understand now.

So before this change happened, you couldn't use unlocked phones on cheaper SIM-only contracts?

 

[NutBucket]

You could but most people didn't. The cost of every "major" plan included a phone subsidy whether you used it or not. If you aren't using the subsidy then there usually isn't a contract involved; same monthly price. Basically there was little (or no) benefit to not getting a subsidized phone.

 

[Cakefish]

You could but most people didn't. The cost of every "major" plan included a phone subsidy whether you used it or not. If you aren't using the subsidy then there usually isn't a contract involved; same monthly price. Basically there was little (or no) benefit to not getting a subsidized phone.

Wow, it all makes sense now. So that's why no one ever bought unlocked phones in the US. I thought it was just because you all loved expensive contracts so much.

That's terrible. How were these companies allowed to get away with that for so long? What an absolute rip-off. Great to hear that it's changing now.

We've had cheaper SIM-only plans in the UK from the very start.

 

[NutBucket]

It was an easy way to mask the true cost of a handset. That's basically what it comes down to.

Americans love "free" stuff....

 

[Cakefish]

It was an easy way to mask the true cost of a handset. That's basically what it comes down to.

Americans love "free" stuff....

I've always preferred buying unlocked phones outright and then paying a cheaper monthly payment. My first smartphone was the Galaxy SII, followed by the Nexus 4 and then my current Nexus 5. I'm looking to get a Moto X Play as soon as it launches by the end of this month and then possibly swap to the new Nexus later in the year when they're available. This kind of freedom isn't possible on 24/18/12 month long contracts, which is why I always prefer unlocked. Also, I hate being in debt to anyone or anything and try to avoid it at all costs (which is why I have never bothered with getting a credit card). Always prefer a one-off payment, however large, so I can then forget about it and know that the product is 100% mine and I am in control.

I'm glad you folks across the pond are finally able to enjoy this kind of freedom. Though I find it very strange and ironic that the average American would shun the idea of freedom in favour of long, expensive contracts!

 

[tnt118]

A co-worker of mine who still has unlimited data went into a store for a new phone today and was told he'd be able to keep the unlimited as long has he bought the phone outright and didn't pay in installments. Not sure if we had a solid answer on how that would work yet or not.

 

[cpacini]

I've always preferred buying unlocked phones outright and then paying a cheaper monthly payment. My first smartphone was the Galaxy SII, followed by the Nexus 4 and then my current Nexus 5. I'm looking to get a Moto X Play as soon as it launches by the end of this month and then possibly swap to the new Nexus later in the year when they're available. This kind of freedom isn't possible on 24/18/12 month long contracts, which is why I always prefer unlocked. Also, I hate being in debt to anyone or anything and try to avoid it at all costs (which is why I have never bothered with getting a credit card). Always prefer a one-off payment, however large, so I can then forget about it and know that the product is 100% mine and I am in control.

I'm glad you folks across the pond are finally able to enjoy this kind of freedom. Though I find it very strange and ironic that the average American would shun the idea of freedom in favour of long, expensive contracts!

Well many people are either unwilling or unable to pay $600-800 up front to buy a phone, so the subsidised model is attractive. And that is not really changing, even though contracts are going away it's just being replaced with 24 month zero interest financing. Still locked in to paying the carrier for 2 years, but at least it is more transparent than the mystery of contacts and ETFs.

Besides we buy everything on credit here.

 

[Artdeco]

I've always preferred buying unlocked phones outright and then paying a cheaper monthly payment. My first smartphone was the Galaxy SII, followed by the Nexus 4 and then my current Nexus 5. I'm looking to get a Moto X Play as soon as it launches by the end of this month and then possibly swap to the new Nexus later in the year when they're available. This kind of freedom isn't possible on 24/18/12 month long contracts, which is why I always prefer unlocked. Also, I hate being in debt to anyone or anything and try to avoid it at all costs (which is why I have never bothered with getting a credit card). Always prefer a one-off payment, however large, so I can then forget about it and know that the product is 100% mine and I am in control.

I'm glad you folks across the pond are finally able to enjoy this kind of freedom. Though I find it very strange and ironic that the average American would shun the idea of freedom in favour of long, expensive contracts!

I've looked at what your more inexpensive plans are, and couldn't believe how the U.S. carriers are screwing us.

 

[Midwayman]

Well many people are either unwilling or unable to pay $600-800 up front to buy a phone, so the subsidised model is attractive. And that is not really changing, even though contracts are going away it's just being replaced with 24 month zero interest financing. Still locked in to paying the carrier for 2 years, but at least it is more transparent than the mystery of contacts and ETFs.

Besides we buy everything on credit here.

Right, but at least the cost of your phone isn't as hidden. There is a much greater reason to get a mid-range phone as you can actually see savings. You can also buy from a 3rd party and not pay the insane MSRP on some phones. Same deal for used phones. I hated the baked in subsidy model.

 

[cpacini]

Right, but at least the cost of your phone isn't as hidden. There is a much greater reason to get a mid-range phone as you can actually see savings. You can also buy from a 3rd party and not pay the insane MSRP on some phones. Same deal for used phones. I hated the baked in subsidy model.

Agreed, you can actually save quite a bit of money now buying a cheaper phone