A couple of weeks ago, I was sad to learn that Sprint was going to get rid of their 2 year contracts. A fellow reader commented that it was still possible to get the 2-year contracts at certain stores, like at Best Buy or Target. At the time, I was not able to take advantage of the extension because I was still under contract. Our phones were only upgrade eligible for certain “leasing” plans (no, thank you). Well, 4 out of the 5 phone contracts have ended, but so have the 2-year contract extension at the retail stores.
No More Two Year Contracts
We May Have to Part Ways, Sprint
When people say that subsidized phones aren’t free because you are technically paying for it in the form of higher monthly fee, they are absolutely right. However, we had factored in the cost with the 2-year contracts. Now that the contracts have ended, it no longer makes sense to pay a higher monthly rate than what is currently available on the market — especially if the new phones are no longer subsidized. It’s a virtual certainty that I will be moving on from Sprint.
Which Carrier Am I Going to Switch To and Why?
I’ve had Sprint, T-Mobile, and AT&T as my wireless carrier over the years, so I have a good idea of how reliable each of the networks is in my area. After reviewing the options, I plan to switch to T-Mobile. I like T-Mobile for its unlimited plan, competitive family plan pricing and international data roaming (which Sprint has but gets far less attention for it). I always wanted a GSM phone, and T-Mobile has that too.
I did not consider Verizon because it’s on the CDMA network (same as Sprint), while my personal preference is for a GSM phone. They also do not offer “free” international roaming like Sprint and T-mobile, which is a deal-breaker for me. While Verizon is known for their “reliable” network, their pricing is also higher than their competitors. Although I have not had Verizon as a wireless carrier, I have not been impressed with their service when we had issues with our landline.
AT&T, on the other hand, is on GSM and also has a reliable network. Like Verizon, they do not offer a “free” international roaming and their pricing is less competitive than Sprint and T-Mobile. I personally think that AT&T has a lot of potential but it hasn’t done anything to make itself stand out. If it beefs up its offerings, AT&T could be an interesting choice.
I like competition so I don’t want any of the major carriers to fail. However, if anyone has learned, it’s that even behemoths can fail. We need to look no further than Blackberry.
When To Make the Switch?
I am planning to switch when there is a good deal, especially since I am dealing with a 5 lines switch. In hindsight, I may have already missed the boat with the trade-in offer for the iPhone 7 a couple of months ago. However, with the holidays around the corner, I am hopeful there will be a few more promotions. In fact, there is already a leak on T-Mobile’s promotions for Black Friday.
Interestingly, there is nothing mentioned in the leak about iPhone 7 or iPhone 7 Plus deals. If T-Mobile brings back the trade-in deal, I’m in. Otherwise, I plan to wait it out a bit longer. The worst case scenario? We will switch when the iPhone 8 comes out. After all, everyone is expecting something big from Apple given that next year is the 10th year anniversary of the iPhone. You never know, that could just be the new “next big thing”.
If you and your family collectively don’t use a tremendous amount of data, you might consider Project Fi from Google. The downside is the upfront cost of equipment, but the plan pricing can be extraordinary – again, if you don’t use a lot of data. Plus, you can find last year’s Nexus 5x, still an exceptional phone, for a lot less than the newer Pixel phones (which are wonderful, but very pricey).
As an example, your family with 5 phones would get unlimited calling and text usable on all of both Sprint’s and T-Mobile’s networks, no contract, no activation fees, for $80/month. The phones will work on most networks globally at $0.20/minute.
Again, data is the only possible sticking point. It’s billed at a rate of $10/GB (same rate anywhere in the world) and it’s billed to the amount you use. 3.45GB = $34.50. If you are mostly using data on WiFi (and Fi can autoconnect to Google-recognized WiFi networks as you travel – this might be a great option.
Alas, although I didn’t focus on it in this post, but unlimited data is one of the key components I look for in my family plans. I had previously looked at the Project Fi option, but it wouldn’t fare well at all (cost-wise) based on our historical data usage. However, it is definitely an option for fellow readers to consider, especially if they don’t have high data needs. So Jeremy, thank you very much for your bringing up that suggestion and for your thoughtful comment.
Also, I have heard a lot of buzz around the new Pixel phones (sounds like you may have some experience with it?) I haven’t checked it out yet, but I’ll probably check out its specs soon to find out more about what’s unique about it (at least compared to other premium handsets).
Nice article but the subsidized argument has always been BS. Your plan is the same price if you do the 2 year contract or bought your phone full price, there was never a difference in plan price. Also now that the contracts are gone the plans still have the same price, the subsidize argument is just carrier BS that’s why they are all running to the installment plan option. $200 phone with a 2 year contract vs. $30 a month ($360) a year. People should be more outraged that these phones cost $700+ when every other piece of technology is going down in price. But the idiot consumer, is too lazy to complain because they can’t dare part with their phones. I can get a 65in TV for $600 and it has more electronic components than a phone. People wake up and see that you keep getting duped by these cell phone companies and you’re falling for these dumb excuses they have as to why they do it.
Let’s assume that the plan price is always the same. If you are going to pay the same price, you may as well get a subsidized phone at $200 than pay full price ($700) for it. What had been happening over the years is that carriers had begun to get rid of the 2 year contracts in favor of these other leasing plans and installment plans. It’s in the name of giving consumer more “choice”, but it’s basically shifting the full cost of the phone back to the consumer. I’ve said it before — I am not in favor of these leasing or installment plans.
I agree that phones are excessively costly. However, I’m a also a proponent of consumer choice and it being the driver of the market supply and demand. We are only at the tip of the iceberg. With more of the cost being shifted over to the consumer, it’s only a matter of time before the consumer decides the
– the phones should not be worth so much
– they are going to shift to a lower priced but equally functional phones
– they are not going to upgrade their phones every 2 years anymore (I’m in this segment)
At which point, the suppliers (in particular) will either have to come up with newest tech to keep consumers engaged or lower their prices to get people to buy new phones. And for me, the gradual changes in the industry had been immensely interesting to observe and experience.
Thanks for reading!
I use Verizon myself. They don’t have all the free amenities and parks, but their landline service and cell service aren’t related when it comes to quality since they’re different networks. If it’s coverage you’re after, I’ll tell you that I was the only one with good service in upstate New York During my trip. It makes a difference when it matters. If you’re always in a good area for coverage, T-Mobile has attractive packages.
Absolutely, and thanks for making it clear that Verizon’s landline is not the same as its wireless network. In all fairness, I have heard nothing but positive comments about how reliable Verizon’s wireless network from peers who have Verizon as their carrier.
I actually don’t doubt that Verizon has the most reliable network out of all the carriers. (“Can you hear me now?”) 🙂 People have to make the best choice about the network they want/need based on where they are located and where they travel frequently. The network in my area hasn’t been an issue with the other carriers, so for me, the network alone isn’t worth the tradeoff in price and other perks that come with other carriers.
That said, I’m always glad to hear from another perspective. Thanks for sharing!
Agreed. I’m just shocked consumers are not already at the point of that’s wayy to much for a phone. When you really look at it what does the new one do sooo much better than the 2year old model? The new one even looks exactly like the old one. I think waterproof or water resistance makes it worth looking at a new handset but aside from that nothing really changes aside from slight camera adjustments, which honestly if your that anal about the camera you should just go buy a real camera. Even thinking about what else I would.like my phone to dour I can’t really think of another logical thing. Consumers need to realize they have the power, from a business standpoint, yes I would always charge $700+ for my phone as long as people are stupid enough to come buy it, even wait outside for it. The payment plan tries to soften the blow oh no its not $700 it’s $30 a month and you can upgrade in 6 months, but if the consumer did the math you would see how you are in a worse situation, plus when you upgrade the cArrieta resells your phone as refurbished for $25 month. #winwin