Yesterday I spent one of the most frustrating days dealing with a company. It started out with what I thought was going to be a simple visit to my local AT&T store. Instead it ended up being four hours spent on the phone with AT&T and listening to four different people just spouting lines they were told to tell us.
Here is the full story, and my opinions on AT&T's new cellular program.
Six months ago when I logged on to pay my cell bill a notice popped up telling me that new plans were now available. I have been with AT&T for 10 years now and I have seen their plans change a lot as technology changed. I was happy to see that these new plans were going to save me over $100 a month. My thoughts at the time? Good. AT&T is staying competitive with other providers, because it seemed we always paid more because we didn't have the options other cities have. I should have realized that a company this big just doesn't drop their prices.
I found out the catch yesterday.
My contract was up in May. Which usually means you are eligible for a upgrade to a new phone for a discounted price if you sign on for two more years. Being that I have been a happy AT&T customer for over 10 years, resigning has never been a problem. Until yesterday. I decided that it was time for a new phone since my battery life is horrible and my current phone had decided to stop ringing. The associate was very nice and immediately tried to sell me on their new Next Plan. I cut him off and told him that I wasn't interested in financing a new phone. I told him that I wanted to renew my plan and just pay the discounted price for the phone. He then gave me the whole, "Well the Next Plan is cheaper." So I asked him how paying $648 for a phone is cheaper. He then told me that I would have to pay $25 more a month (per phone) to renew my contract. Basically I would be paying them to commit for the next two years to be their customer. I was furious! I was so mad I stayed on the phone with AT&T for hours yesterday because I wanted to hear it from every level of management that I spoke to that this was true and what their explanation for it was.
Here is how some of the conversations went.
Them: "The Next Plan is good because you have the option to trade in your phone after a year for a new one."
Me:" So you want me to rent this phone from you for $324 this year and then hand it back with nothing to show for it? Wouldn't I be basically just paying you a large amount of money for the ability to trade in my phone every year?"
Them: "No you are paying for the guarantee that you can get a new phone in a year."
Me: "That is what I said...just phrased differently."
Another person:
Them: "The next plan is cheaper."
Me: "Explain Please?"
Them: " Because it's only $27 a month, whereas renewing your contract will cost you $25 a month to renew then the price of the phone."
Me: "That wouldn't be true if you weren't charging me more because I want to stay your customer for the next two years."
Basically the new deal with AT&T is this. For people who did not change their plans when they first came out they are selling them on the fact that it "Equals Out" in the end. That basically you will be paying the same as you did before if you decide to renew. They are then convincing people to choose the Next Plan because that will be cheaper because you don't have to buy your phone then. Which is true. The Next Plan is cheaper now....because they made the other options more expensive.
It's all malarkey. They basically lowered their plans six months ago, so that when it came time to renew they knew they could convince people to pay the $27 a month for the Next Plan.
My solution? First leave AT&T if possible. But since Tony's contract renewed at the beginning of the year I might not be able to do that anytime soon. That leaves my options as;
1) Pay the $25 a month extra for my service per phone that upgrades plus the cost of the phone. That would make my cost for the two year period $600 per line plus $200 for the phone. ( BTW I have six devices on my plan.)
2) Do the Next Plan and pay $27 a month for the next 24 months if I want to own my phone. The amount I would end up paying for the phone at the end of the two years will be $648.
3) Choose the Next Plan and trade my phone in after a year. My cost will be $324 with nothing to show for it at the end of the year.
4) Buy my phone from Ebay for $400. Own the phone and not be contracted to AT&T for anything. This price can be cheaper according to the phone you want or what deals you find.
I will be choosing #4 of course.
I know the Next Plan is going to be very tempting to people because there isn't a upfront cost you have to come up with. But before choosing this, please do the math and see if it works out to your advantage. Because I can not come up with any scenario where it works out for me at all.
Either way, the savings that I thought I was getting six months ago was all just a facade. Silly me..I should have known it was too good to be true.
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