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The 2-Year Phone Contract Is Dead
The Fool ^ | January 18, 2016 21:16 UTC | Adam Levy

Posted on 01/19/2016 3:15:13 AM PST by Up Yours Marxists

You won't be getting a subsidy on your new smartphone in 2016.

AT&T (NYSE:T) and Sprint (NYSE:S) are the last two of the four major wireless carriers to do away with the two-year phone contract and subsidy model. Now, any new contract requires customers to pay for their new smartphone upfront or in installments separate from their service bill.

Verizon (NYSE:VZ) killed off smartphone subsidies in August, and T-Mobile (NASDAQ:TMUS) is now three years removed from its Uncarrier initiative that kicked off this whole trend. Ultimately, wireless carriers could be better off for it, and big phone companies like Apple (NASDAQ:AAPL) and Samsung (NASDAQOTH:SSNLF) have plans to take advantage of the change as well.

How the wireless carriers benefit from no contracts Two-year contracts have practically been dead for some time now since competing carriers have offered to pay early termination fees for customers willing to switch to their networks. Therefore, the negative impact from customers being able to switch carriers more easily should be minimal.

At least with the new system of installment and early upgrade plans, carriers can benefit from customers when they decide they want to upgrade equipment before their two-year contracts would be up.

(Excerpt) Read more at fool.com ...


TOPICS: Business/Economy; Culture/Society
KEYWORDS: apple; cellphones; samsung; smartphones
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To: BBB333

Another reason why I don’t have Apple products.

One of my sons has the Samsung 5 and another has the I phone.
Once my oldest saw the Samsung and how hecan download movies and music for free he now wants the Samsung as it is much better.


41 posted on 01/19/2016 6:56:05 AM PST by manc (Marriage =1 man + 1 woman,when they say marriage equality then they should support polygamy)
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To: FrankR

The thing is, when Verizon got rid of subsidies, they dropped the price. My family more everything plan went from 40 dollars per line to 15 dollars per line, plus $64 for 10 g data. They still offer a two year payment plan, and I got 2 new droid turbo 2s (retail 650) for $13/month for 2 years (Black Friday Online). Since I am paying $25 less per line, now this is a deal. My phone bill went from $300 to $200 per month. Also, Motorola had their Nexus 6 phones on sale for 40% off, and I was able to take advantage of that deal. Now you can bring your own phone, go as long or as short as you want before getting a new phone, etc. I like it.


42 posted on 01/19/2016 7:34:37 AM PST by sportutegrl
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To: PAR35

Not true. I was on the More Everything plan and paying $40 per month per line (4 lines). With 10 g data, the line charge dropped to $15/line as each phone went off contract. They never even told me. It just happened. Big savings. If you have 10 or more g data, stay on the more everything plan, but if not, it is cheaper for you to move to the new plan.


43 posted on 01/19/2016 7:41:14 AM PST by sportutegrl
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To: Shady
The fact that IPhone 7 is reported to have no headphone jack may be a game changer - we’ll have to wait to see...

Forcing people to use bluetooth is a game changer?

44 posted on 01/19/2016 7:48:26 AM PST by pepsi_junkie (Politics: from the greek "poly" [many] and the english "ticks" [blood sucking parasites])
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To: sportutegrl

3 phones, 1g data for one phone, 2 phones more than 5 years old without data; $150/mo. Have about a year to go on the iphone contract, then goodbye Verizon. Just kept them when I got the Iphone because I like the slider phones with real keyboards for texting.


45 posted on 01/19/2016 8:08:19 AM PST by PAR35
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To: Pontiac

we have five iphones (unlimited) for a very low monthly rate. However, to keep that rate, I found out in 2014 when the 6 came out that we lost the phone subsidy. I’m curious as to what iteration iPhone I will eventually replace my 5 with. I’ve had it since the day it came out in 2012 and will keep it until it no longer functions. At that time, I will by a refurb direct from Apple of the 2nd most current model and not the newest full price model from my carrier. I’m hoping for a couple more years on this one and it will eventually give way to a refurb 7.


46 posted on 01/19/2016 8:22:42 AM PST by philled (If this creature is not stopped it could make its way to Novosibirsk!)
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To: dayglored

It’s the middle of the end.


47 posted on 01/19/2016 9:32:22 AM PST by subterfuge (TED CRUZ FOR POTUS!)
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To: Jonty30
It doesn't change basic physics. You can only fit so many electrons in a given space.

That doesn't explain why today's smartphones are more powerful than desktop computers in the 90s.

If the tech eggheads can film a movie on an Iphone, then they can increase the battery life.

48 posted on 01/19/2016 3:59:31 PM PST by Extremely Extreme Extremist
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To: Up Yours Marxists

found this out with my and gf upgrades. i think we are on installment with verizon. my new android is awesome. gald i did it and i didn’t really need to.


49 posted on 01/19/2016 5:25:05 PM PST by kvanbrunt2
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To: Jonty30

. For the most part, unless there is something revolutionary coming that I am completely unaware, the high end phones are pretty much maxed out in their potential.>>>> well my two year old phone compared to the new one was very slow. the new one is 100 times better.


50 posted on 01/19/2016 5:27:24 PM PST by kvanbrunt2
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To: bert

it is wise to remember that an I phone is in reality a hand held computer with a telephone ap>> very true i helped program the original att cell phone business software, billing, customer records etc. never thot the phone would run streaming you tube etc,


51 posted on 01/19/2016 5:31:08 PM PST by kvanbrunt2
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To: Jonty30

You should suggest to her to turn off data, when not in use. Everytime it pings a tower,you’re paying data.>>>
and steal the wifi at work and at home and at your gf father’s house.


52 posted on 01/19/2016 5:32:36 PM PST by kvanbrunt2
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To: kvanbrunt2

My grandson (God bless him) told me to go buy a 2 year old HTC phone model. I thought he was going crazy. He installed Windows 10 on it. I’m not a fan of Windows, but decided to give it a try.

The battery lasts over 3 days without charging. I use it mostly for calls. About 4 hours a day. And email. I’ve never had a cell phone last this long with that kind of use. Signal is great. Never drop calls even in my spotty area. Impressive.

I can see why nobody wants to upgrade.


53 posted on 01/19/2016 5:57:40 PM PST by Up Yours Marxists
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To: All
Windows may not be the best phone software, based on some opinions. However, battery life is excellent. If you don't use all those fancy applications, it's a good lower cost option on these new plans. I'm on a fixed income so this is great.

IMG 8227

54 posted on 01/19/2016 6:12:16 PM PST by Up Yours Marxists
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To: Up Yours Marxists

My Windows Lumia is about 2 years old and, in that time, it has never crashed. It just works.

I haven’t heard that from too many Android or Apple users.


55 posted on 01/20/2016 4:12:13 PM PST by Jonty30 (What Islam and secularism have in common is that they are both death cults)
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