Buying a smartphone via contract reneal (2 yr) pointless? (ATT)

fstime

Diamond Member
Jan 18, 2004
4,382
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Average contracted smartphone price - $200

Unlimited Data - $30 (grandfathered) or $50 for 5 GB.


$200 + $30/month for 24 months (if you are on an unlimited plan) = $920 for 2 years.
OR
$200 + $50/month for 24 months (5 gb plan) = $1400

Versus:

Unlocked International GSM phone - $500-550 + $15 for Data Unlimited for Non-Smartphones = $860-910.

*Excluding monthly fee for talk because it's the same for either option.
 

Jodell88

Diamond Member
Jan 29, 2007
8,762
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Sounds about right. The world laughs at the US customers getting raped on their mobile phone bill.
 

ImDonly1

Platinum Member
Dec 17, 2004
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0
76
Average contracted smartphone price - $200

Unlimited Data - $30 (grandfathered) or $50 for 5 GB.


$200 + $30/month for 24 months (if you are on an unlimited plan) = $920 for 2 years.
OR
$200 + $50/month for 24 months (5 gb plan) = $1400

Versus:

Unlocked International GSM phone - $500-550 + $15 for Data Unlimited for Non-Smartphones = $860-910.

*Excluding monthly fee for talk because it's the same for either option.

You are just comparing data plans?
If you bought the phone off-contract and didn't have unlimited data, why would you stay with those plans? Go prepaid. Prepaid would be $45/mo for everything.

Regular plans would be $40(voice)+data+tax
There is no reason to stay on their regular plans if you bought your phone at full price.
 

fstime

Diamond Member
Jan 18, 2004
4,382
5
81
I'm saying after 2 years, because of the higher cost data plan($30-50/mo vs $15), even though you get the phone for a subsidized price of $200, you end up paying more than if you had bought the phone at full price out of contract and paid only $15/mo for unlimited data.

$860+ when purchased outright after 2 years (excluding voice)
$920+ when purchased by signing a 2 yr contract after 2 years (excluding voice)

Your prepaid option is comparing apples and oranges but still a viable choice.
 
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fstime

Diamond Member
Jan 18, 2004
4,382
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I see, straighttalk, $500/year, unlimited everything ($41/mo).

So they use ATT/T-Mobile's networks. Would ATT's LTE work for you though or only 3G/HSPA 4G?

That makes contract plans even more irrelavent.

With a $500 phone, your $1500 in after 2 years with straight talk versus $2400 with a 450 minute, unlimited data/text plan and cost of a $200 phone.

If you were to make that comparison with an unlimited voice plan to make it a fair comparison, it is even worse.
 

alent1234

Diamond Member
Dec 15, 2002
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You single people are getting ripped off

I pay $150 a month for 4 phone lines on AT&T including 2 iphones
 

AstroManLuca

Lifer
Jun 24, 2004
15,628
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I see, straighttalk, $500/year, unlimited everything ($41/mo).

So they use ATT/T-Mobile's networks. Would ATT's LTE work for you though or only 3G/HSPA 4G?

That makes contract plans even more irrelavent.

With a $500 phone, your $1500 in after 2 years with straight talk versus $2400 with a 450 minute, unlimited data/text plan and cost of a $200 phone.

If you were to make that comparison with an unlimited voice plan to make it a fair comparison, it is even worse.

Straight Talk is not unlimited everything. It has a monthly data limit of somewhere around 2 GB before they cancel your account.

It's still a good deal, cheapest way to get a smart phone on AT&T's network as long as you watch your data use.
 
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dagamer34

Platinum Member
Aug 15, 2005
2,591
0
71
Average contracted smartphone price - $200

Unlimited Data - $30 (grandfathered) or $50 for 5 GB.


$200 + $30/month for 24 months (if you are on an unlimited plan) = $920 for 2 years.
OR
$200 + $50/month for 24 months (5 gb plan) = $1400

Versus:

Unlocked International GSM phone - $500-550 + $15 for Data Unlimited for Non-Smartphones = $860-910.

*Excluding monthly fee for talk because it's the same for either option.

For your average smartphone, yes. For an iPhone, no, because the unsubsidized price is $100-150 more. Also, don't forget about the $30/3GB plan which I think 95% of people would fit into. Plus, should your phone break, with enough complaining to your carrier, you can probably get it replaced. Not so on a pre-paid plan where you buy the phone yourself (it's a lot harder to play dumb over the phone with customer support than in person at a store with a store manager).
 

Jinny

Senior member
Feb 16, 2000
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yes we know it say's unlimited..just like practically all the carriers..and it is, just unusable after 2gigabytes.
 

fstime

Diamond Member
Jan 18, 2004
4,382
5
81
yes we know it say's unlimited..just like practically all the carriers..and it is, just unusable after 2gigabytes.

So they will throttle you, just like everyone else. That is fine, I just wouldn't want my service terminated as the poster above said would happen.

I see no disadvantage then.

My next phone will be bought unlocked and with this plan (after I do a bit more research). Should be a big money saver.
 

ImDonly1

Platinum Member
Dec 17, 2004
2,358
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So they will throttle you, just like everyone else. That is fine, I just wouldn't want my service terminated as the poster above said would happen.

I see no disadvantage then.

My next phone will be bought unlocked and with this plan (after I do a bit more research). Should be a big money saver.

They terminate your account. They don't throttle. They might give you a warning first. Not hard to watch data use if you don't stream.

I see you realized it isn't apples and oranges. Straight talk is the same thing as regular AT&T service with some minor drawbacks.
 
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fstime

Diamond Member
Jan 18, 2004
4,382
5
81
They terminate your account. They don't throttle. They might give you a warning first. Not hard to watch data use if you don't stream.

I see you realized it isn't apples and oranges. Straight talk is the same thing as regular AT&T service with some minor drawbacks.

Well it might actually be the case. With my comparison, you are not terminated, just throttled.

Terminating your service because you go over a 2 gb limit makes this plan a bit of a joke for some people. I wouldn't call that a minor drawback but a major one.

I do go over 2 gb/mo sometimes so this plan would be more headache than it is worth.

That is unfortunate, would have been a great deal.
 

QueBert

Lifer
Jan 6, 2002
23,017
1,204
126
I've also heard of people getting dropped from Straight Talk for having a lot of single days where they go over 100 megs. So you can use a lot less than 2gb a month, but if you use 200 on some days you could still get booted.
 

obidamnkenobi

Golden Member
Sep 16, 2010
1,407
423
136
Unlocked International GSM phone - $500-550 + $15 for Data Unlimited for Non-Smartphones = $860-910.

I thought they had ways of detecting your phone type and cutting you off if you tried to use a smartphone with the featurephone dataplan? Or bumping you to the $30 plan. I have a hard time believing AT&T hasn't thought of this and done something about it.
 

alent1234

Diamond Member
Dec 15, 2002
3,915
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if you're single the best deal on a contract phone is to use the amazon and other penny deals and switch carriers all the time
 

AstroManLuca

Lifer
Jun 24, 2004
15,628
5
81
Unlocked International GSM phone - $500-550 + $15 for Data Unlimited for Non-Smartphones = $860-910.

I thought they had ways of detecting your phone type and cutting you off if you tried to use a smartphone with the featurephone dataplan? Or bumping you to the $30 plan. I have a hard time believing AT&T hasn't thought of this and done something about it.

Hmm, that is a good question. I have heard that AT&T will detect if you have a smartphone and will automatically add a $30 data plan if you don't have one. On the other hand, I've also heard that they do this by searching for known IMEI numbers, so theoretically if you get a phone that AT&T never sold (a T-Mobile phone, or any unlocked international phone), they wouldn't detect you and thus would not be able to switch you to the more expensive data plan.

I don't know enough about this to know what would happen. It sounds like it might work.
 

AstroManLuca

Lifer
Jun 24, 2004
15,628
5
81
if you're single the best deal on a contract phone is to use the amazon and other penny deals and switch carriers all the time

How does that work? Do you mean buying a phone on a contract for $0.01, and just eating the ETF (keeping the phone) and flipping it on eBay or something? In which case you have to hope that whatever phone you get can be sold for more than the cost of the ETF + activation fee + first month's service. And if you go through Amazon then they have their own ETF as well.
 

alent1234

Diamond Member
Dec 15, 2002
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just use the service for 18-24 months

around the 18 month mark the ETF is low enough that if you sell your old phone you break even

it used to be that existing customers got discounts but the wise MBA's said only new customers get them now. hence all the penny deals and special pricing for new customers
 

AstroManLuca

Lifer
Jun 24, 2004
15,628
5
81
just use the service for 18-24 months

around the 18 month mark the ETF is low enough that if you sell your old phone you break even

it used to be that existing customers got discounts but the wise MBA's said only new customers get them now. hence all the penny deals and special pricing for new customers

Two problems I see with that:

On Sprint at least (my current provider), prices for a contract renewal are the same as prices for a new line of service. I am out of contract on my line and checked how much it would be to upgrade to a different phone. Then I signed out and checked how much those same phones would cost as a new customer. They were the same. Maybe other carriers do things differently, but for Sprint, it doesn't matter if you're an existing customer or a new one, as long as you aren't currently under a contract.

Also, if you buy a phone on a contract, you're locked in to paying that high price for two years. If you buy a phone without a contract, you have the option of using a less expensive service. T-Mobile offers very large discounts on their plans if you aren't under a contract - $80 instead of $120 for two lines, for instance. Or you can sign up for a prepaid plan that is a lot cheaper than a standard plan. However, there is no benefit to this unless you're on T-Mobile, Straight Talk, or Page Plus, provided one of those carriers is able to serve your needs.
 

obidamnkenobi

Golden Member
Sep 16, 2010
1,407
423
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Hmm, that is a good question. I have heard that AT&T will detect if you have a smartphone and will automatically add a $30 data plan if you don't have one. On the other hand, I've also heard that they do this by searching for known IMEI numbers, so theoretically if you get a phone that AT&T never sold (a T-Mobile phone, or any unlocked international phone), they wouldn't detect you and thus would not be able to switch you to the more expensive data plan.

I don't know enough about this to know what would happen. It sounds like it might work.

But why wouldn't AT&T just keep an database of IMEI number for other phones they don't sell and check against those as well? Seems like it would be a simple matter to get those from Samsung or whatever. If someone has tried it please let us know.
Also; once you use 2GB on a featurephone plan they may have a system that flags your account.. Although if they can't prove it I guess there's not much they can do
 

ImDonly1

Platinum Member
Dec 17, 2004
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But why wouldn't AT&T just keep an database of IMEI number for other phones they don't sell and check against those as well? Seems like it would be a simple matter to get those from Samsung or whatever. If someone has tried it please let us know.
Also; once you use 2GB on a featurephone plan they may have a system that flags your account.. Although if they can't prove it I guess there's not much they can do

Well they don't and that is a good thing for consumers. If you buy an international phone they won't know its a smartphone.

If the Straight Talk TOS scares you OP, you can try other prepaid providers...
Red Pocket advertises unlimited talk, text, and 2GB of data. They specify the amount of data and won't cancel your service, data will just stop working until you refill.
Their plan is $60/mo. You might be able to buy the plan elsewhere for a little less (callingmart.com). Right now they have 5% off Red Pocket with code mom125. Total is $57 for the plan.

Not sure what you pay right now for ATT $40 voice + $10-20 text + $15-30 data + tax.
 
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Lemon law

Lifer
Nov 6, 2005
20,984
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I don't want to hijack this thread, but I somewhat ask question about smart phones in general.

But in general, I live in a rural area, have no hard wired broadband internet options like cable or dsl, but now that my local area has been upgraded to 4G Verizon LTE capable in terms of data, suddenly a smart phone MAY OR MAY NOT BE be a rational choice for me to upgrade my technological capacities. As I ask the question on total ignorance of what a smart phone might do for for me.

At present, at home, I have a Verizon 4620L 4g MIFI modem under a two year contract, and for $80.00 a month it delivers me and my networked inwife up to 10GB a month of data, and its likely 1.5/GB a month will be unused. At home I have a land line telephone that takes care of my local telephone needs, and I can use gmail and a cheap skype type USB handset to place an almost unlimited number of long distance telephone calls to the USA and Canada. (even those those skype type calls do eat slightly into that 10GB/ mo. Data allotment ) As for dumb cell phones, which my wife and use mainly as insurance in terms of being stranded in the middle or no where to call for help, they cost less than $10.00 a month each. As I accumulate minutes far faster than I use them.

So I gave two questions, what will a smart phone do for me, and also state, if I want to be ripped off, on a smart phone. I can sign up for some 2 yr data and minutes plan with any carrier.

But since my Verizon 4620L modem is a traveling MIFI hotspot, can I buy some used android used phone that will allow me to check email and GPS tracking software or the like when I am on the road, without a contract in the few times when it becomes an asset? As I feed it data off my Verizon Mobile WIFI hotspot 4G contract?
 

AstroManLuca

Lifer
Jun 24, 2004
15,628
5
81
I don't want to hijack this thread, but I somewhat ask question about smart phones in general.

But in general, I live in a rural area, have no hard wired broadband internet options like cable or dsl, but now that my local area has been upgraded to 4G Verizon LTE capable in terms of data, suddenly a smart phone MAY OR MAY NOT BE be a rational choice for me to upgrade my technological capacities. As I ask the question on total ignorance of what a smart phone might do for for me.

At present, at home, I have a Verizon 4620L 4g MIFI modem under a two year contract, and for $80.00 a month it delivers me and my networked inwife up to 10GB a month of data, and its likely 1.5/GB a month will be unused. At home I have a land line telephone that takes care of my local telephone needs, and I can use gmail and a cheap skype type USB handset to place an almost unlimited number of long distance telephone calls to the USA and Canada. (even those those skype type calls do eat slightly into that 10GB/ mo. Data allotment ) As for dumb cell phones, which my wife and use mainly as insurance in terms of being stranded in the middle or no where to call for help, they cost less than $10.00 a month each. As I accumulate minutes far faster than I use them.

So I gave two questions, what will a smart phone do for me, and also state, if I want to be ripped off, on a smart phone. I can sign up for some 2 yr data and minutes plan with any carrier.

But since my Verizon 4620L modem is a traveling MIFI hotspot, can I buy some used android used phone that will allow me to check email and GPS tracking software or the like when I am on the road, without a contract in the few times when it becomes an asset? As I feed it data off my Verizon Mobile WIFI hotspot 4G contract?

Yes, that is possible. But you probably won't want to actually use Verizon's own prepaid service. They're very restrictive, only allowing you to activate Verizon Prepaid phones - you can't even use a standard Verizon phone on their own prepaid service. And their service is expensive.

However, there is another way. There is a prepaid carrier called Page Plus Cellular that will activate Verizon phones (even smartphones!). Page Plus uses the Verizon network so you should get very good coverage (although it uses the prepaid network so it won't be quite as extensive as Verizon itself). Most people who put smartphones on Page Plus go with one of their monthly plans with data, but it may be possible to stick to one of their even cheaper plans. They have one called The 12 that is $12/mo for 250 minutes, 250 MB, and 10 MB of mobile data. Not much data, but if you use your MiFi for data it should work great. They also sell minute refill cards if all you want to do is make calls. The cheapest one is $10 for 100 minutes and it renews your account balance for 120 days.

I think the trick would be to get a used Verizon smartphone that is compatible with Page Plus, activate it, and then just block mobile data entirely (this is possible on Android phones). That will allow you to save money by not having to pay for mobile data. Just use the MiFi for data and the phone can also be used for voice.

A good resource to learn more is Howard Forums' Page Plus section: http://www.howardforums.com/forumdisplay.php/364-Page-Plus-Cellular