Is off-contract always better?

[G+_Vance McAlister]

Is off-contract always better?

 

Both Jason Howell  and Fr. Robert Ballecer, SJ  extolled the virtues of buying phones off-contract.  While I understand why the freedom seems appealing, I am just not getting why it is better for the average person.  Maybe I am missing something.  When I checked with my carrier, Verizon, I didn't see how it would be any cheaper.  The monthly price of the plan is exactly the same whether you are on contract or off.  So, how would buying the phone off-contract help me save money?  

 

Another, more personal issue which may apply to many others, is that I am simply NOT going to be changing carriers.  Verizon is the only one with decent coverage and speed in my area and I am part of plan that my business has, and we are not going to be switching.  

 

So, since it would not make sense to change carriers and it is not any cheaper to go off-contract, is it not better to take the subsidy, sign a new contract, and save $400 up front?

[G+_Bill Bynum]

i pay $30 per month for Tmobile, 5GB of 4G data and unlimited Text and 100 phone mins...  Show me a subsidized plan for that kind of money.  

[G+_Dave Bach]

That is a choice you are gonna have to make for yourself. After you make that choice you then won't have to make it again for the next two years. It would be an easier choice to make if every carrier had every phone and were also more competitive on price.

[G+_Clifton Rouse]

Tmobile is only 2g in my area. I went with aio wireless 7gb unlimited text and calls for $70. For $55 u get 2gb and unlimited texts and calls. With Verizon 7gb of data would run me $70 in itself not even including taxes.

[G+_Vance McAlister]

Bill Bynum Yes, but that is not true of Verizon.  So, in a situation like mine, where I am NOT going to be leaving Verizon, how is it beneficial to pay for full price for an unsubsidized phone.  I understand that on other carriers there are benefits, but Verizon is a huge player with a LOT of users and, assuming the user has to stay with Verizon, I am not seeing a benefit for them for paying more for a phone just to pay the same price month to month.

[G+_Clifton Rouse]

If your 100% not leaving Verizon you would be better off getting a subsidized phone. Not sure why this question was even asked???

[G+_Robert Marshall]

For the AVERAGE user, who has one of their current data plans, and is 100% certain they're not going to change, then NO, it doesn't make any sense to go off-contract. The only benefit they would be getting would be the ability to leave Verizon early without a $350 early termination fee (prorated depending on when they leave).

 

On the flip side, you would be able to upgrade to the "latest and greatest" phone at any time you want to without extending your contract period. You can only get one subsidized phone per contract period, without extending your contract, or paying full price anyways.

 

In my circumstance, I have Unlimited Data grandfathered AND am not under contract. This Summer I averaged 9gb data per month for that $29/mth cost. Had I upgraded to a subsidized phone, I would have spent an insane amount for the "overage."

 

I bought a gently used HTC One over on Swappa recently, and couldn't tell it was not new. I highly recommend looking at that site to see if there are any used phones that might be suitable for you. The only extra cost will be Verizon's $35 activation extortion fee for when you change phones. 

[G+_Robert Marshall]

You have to also remember that Jason Howell and Fr. Robert Ballecer, SJ are both technologists, who probably change phones regularly, and so having a contract around their neck makes no sense. The ability to upgrade without hindrances is a big plus in their situation.

[G+_Daniel Charles]

Verizon has prepaid plans, the cheapest of which is $60/mo. for a smartphone (not sure if this includes LTE or only 3G). If you buy the phone outright, then you can use a prepaid plan and possibly save a little money. If you do the math and it breaks even then the only way you save is if you keep your phone for longer than 2 years (or the length of the contract you're comparing to). If you need/want a new phone every two years then you could try selling your old phone or just go with a contract.

[G+_Vance McAlister]

Clifton Rouse The reason I asked is because I thought I must be missing something, since everyone seems to act as if it is a no-brainer that off-contract is always better in the long run.  I was just not seeing how that would be the case for me.  

 

Actually, I should say for my son.  I did pay full price for my Verizon HTC One in order to maintain my unlimited data, but am not getting ANY other benefit.  I will still be at Verizon two years from now and my monthly amount is exactly the same.  But my son has an upgrade available and I am just not seeing any benefit to buying his phone off-contract.

[G+_Robert Marshall]

Verizon pre-paid does NOT use their LTE network, only 3g. If someone can live with that great. But, after making the switch three years ago, I'd hate to go back to 3g only. 

[G+_Robert Marshall]

If your son was grandfathered with Unlimited Data Vance McAlister, then that was a benefit to get an unsubsidized phone right there. Even if he wasn't anywhere near the 2gb data level in a month, the cost of the data is $29/mth vs $30/mth (or more).

 

That's a nice luxury most people don't have anymore with Verizon. The extra $200ish that you paid for the unsubsidized phone would be eaten up by paying higher data fees if you used 2-5gb/mth data monthly. To me, being off-contract during that same period is worth $100, or thereabouts, even if I didn't intend to switch carriers.

[G+_Vance McAlister]

Robert Marshall No, his is not unlimited, so there is no benefit there of paying full price.  I paid full price for my phone for that very reason, I need to keep that unlimited data, especially since I like to create free wifi hotspots for the family while on vacation.

[G+_Robert Marshall]

I misread your post Vance McAlister. You actually said YOU had unlimited data, not your son. I read that backwards.

[G+_Jerry Ham]

Right; if you are going to stay with Verizon there is currently no benefit. Verizon prohibits unlocked phones - for now, while they still use CDMA for voice. So if you buy one full price from Verizon, they make you pay the subsidized price for the plan as well (which is probably still legal, but likely won't be forever; there should be line item billing and you should not be paying the subsidy, but today I'll grant that you do). Bottom line - ripoff carrier Verizon is the problem here. You've stated you can't switch, so you are stuck with their swindle. If you were able to switch you'd find much better deals elsewhere - and off contract / unlocked would make sense for you.

[G+_Robert Marshall]

Not sure where you're getting that Verizon prohibits unlocked phones Jerry Ham. There are plenty of people who are using unlocked phones. I'm sure some have even posted in this thread. ;-)

[G+_Arsenio Martins]

Vance McAlister there is one thing you have to keep in mind. When you buy a subsidized phone you might pay $200 and the rest of the cost is built into the phone contract over the 2 years. They lock you in to recover the cost of the phone which is why you pay an etf if you leave early. Problem is after the 2 years are up they don't say oh we recouped the cost of the phone so let's drop you monthly rate by $20-30 a month. They keep charging you the same price. Benefit of an if contract MVNO like Straight Talk is that they lease the towers from companies like ATT and T-Mobile at half the cost. Therefore I can be off contract with Straight Talk and pay $45 a month with my nexus 5 and still get LTE with 20 mbps. It works if you go with a MVNO carrier but you aren't going to get a deal by using Verizon and bringing your own phone. They aren't going to give you a discounted rate.

[G+_Robert Marshall]

Are there any MVNO's that use Verizon's LTE now Arsenio Martins ? When I looked last year I couldn't find any.

[G+_Brian Hitchcock]

I'm not certain but Cricket may use Verizon. I seem to remember that when I was looking about s year ago. That may have changed or I could just be wrong.

[G+_Arsenio Martins]

Robert Marshall I believe Net10 also uses Verizon among others. It's a little harder when considering Verizon but in NET10 wireless website click on 4G LTE. Part way down there is CDMA and click through that. It will ask for some of your phone info to see if it's compatible.

[G+_Paul Werner]

I did find this article about Verizon MVNOs

 

http://www.howardforums.com/showthread.php/1795279-Ranking-the-Verizon-mvnos-and-prepaid

[G+_Gregory Soave]

I'm on Verizon and going to save so much by switching to T-Mobile pre-paid.  $30 a month compared to $90. 

[G+_Mark Scholes]

I pay $5/year for my connection, just use WiFi and let people phone me

[G+_Erik Huntoon]

I would love to switch from Verizon to Tmo but I hear as soon as I leave town it drops to 2g coverage.  I currently am grandfathered into the unlimited data plan at Vzw and use around 4 or so gb per month.  Dropping to 2g for the bulk of a ride to Chicago is not acceptable.