Tuesday, December 3, 2013

Non-Contract Wireless Plans (Other Than Pre-Pay)

AT&T, Verizon, Sprint, and T-Mobile are aggressively pushing plans where, instead of a 2-year contract where you buy the phone up-front at a subsidized price, you pay for the phone in monthly installments at its full-unsubsidized price. The plans vary in their details but they are all RIP-OFFs. The only way to "save" under these plans, if you want to call this "saving," is if you want to trade-in your phone (and it better be in perfect condition or there is a penalty) for a new phone every 6-12 months and keep paying full-price for the phone on a monthly basis. For example, with AT&T, your cost for a 32GB iPhone 5S is $300 up-front under a 2-year contract or $32/month under its Next plan, which will cost you $640 over 20  months. The link below gives a cogent overview of each of these plans under the title, "Which Is the Biggest Rip-Off?" Note, though, that pre-pay plans, which are free of any time-contract, are entirely different, and, if you own your phone, can be cost-saving depending on your particular usage.

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