Home » Technology

Is AT&T’s “Next” Plan A Good Deal?

Submitted by on July 17, 2013 – 8:50 amOne Comment
Share

Service provider AT&T recently joined the trend of offering more frequent device upgrades- for a price, of course. Two-year contracts have long been the bane of tech-savvy consumers who love to get the latest devices as soon as they’re available, so this offer would seem to be a good deal; but does it leave customers paying more and getting less?

Under the Next plan, AT&T customers would pay $15 to $50 extra (depending on the device), in addition to the monthly service plan. After 12 months, the device can be traded in, or the plan can be paid off after 20 months.

Nilay Patel at The Verge calls the plan “an absolutely clear ripoff designed to cheat customers into paying full price for their phone without actually buying anything.” Patel has to make some estimates about how much of AT&T’s costs are going towards a “device subsidy.” But basically, he shows that after 12 months with Next, you’ll have paid more than the retail cost of the device, but you won’t own it like you would under a two-year contract or if you bought it outright.

The Next plan is a clear response to T-Mobile’s Jump plan, announced last week. Similarly, T-Mobile is offering shorter device commitments for an additional fee- but the fee is just $10, and customers can trade in phones twice a calendar year starting after six months with the plan.

Nathan Ingraham (also at The Verge) says this plan has more potential to be a good deal, depending on one’s phone consumption habits.

“If you’re confident you’ll take advantage of the plan twice a year, every year, it’s worth looking into,” he writes.

What do you think? Would you take either deal?

Related Posts with Thumbnails

Leave a comment!

Add your comment below, or trackback from your own site. You can also subscribe to these comments via RSS. Be nice. Keep it clean. Stay on topic. No spam.

We want to keep in touch with you. If you give us your email address, you may receive marketing emails from the DJ Networks family. We hope that's cool.

You can use these tags:
<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

This is a Gravatar-enabled weblog. To get your own globally-recognized-avatar, please register at Gravatar.