Not true, Cricket only offers 1GB of data not unlimited like Sprint. I don't know where AI got that 2.3GB figure from, go to Cricket and see for yourself. And Straightalk also in reality only offers 2GB before you get nasty warnings, same as Pageplus. Only Sprint offers truly unlimited data that is also not throttled after a set amount and free from text warnings calling you a data hog threatening to cancel your service.
Cricket's 2.3GB soft cap is explicitly stated in the press release:
Straight Talk "Bring Your Own Phone" SIM card, $45/month no-contract. Unlimited talk, unlimited text, and "unlimited" data (which anecdotally has a soft cap around 2GB followed by an allegedly "you're a data hog" message). Just buy the unlocked retail iPhone 4S at Apple.com for $649 plus the one-time $15 for the SIM card. Your phone will be connecting to AT&T's cellular towers. If you're in an area with HSPA+, you'll have the faster connection. Total cost of ownership over 24 months: $1744
Verizon: $79.79 (450 min. talk, 2GB data, no text plan)
AT&T: $79.79 (450 min. talk, 3GB data, no text plan)
Sprint: $89.79 (450 min. talk, unlimited text/data)
Sprint: $119.79 (unlimited talk/text/data)
Verizon: $129.79 (unlimited talk/text, 2GB data)
AT&T: $129.79 (unlimited talk/text, 3GB data)
The plans in blue are similar offerings (unlimited talk, unlimited text and 2-3GB of cellular data). The plans in red are those with limited voice (and in the case of Verizon and AT&T, no text plan).
Verizon: $79.79 (450 min. talk, 2GB data, no text plan)
AT&T: $79.79 (450 min. talk, 3GB data, no text plan)
Sprint: $89.79 (450 min. talk, unlimited text/data)
Sprint: $119.79 (unlimited talk/text/data)
Verizon: $129.79 (unlimited talk/text, 2GB data)
AT&T: $129.79 (unlimited talk/text, 3GB data)
So does that mean they will change their data allowance for all phones on their $55 a month plan or just for the iPhone? 2.3GB is actually a pretty generous amount for many people, 1 GB not so much. I can see a lot of pissed Android folk if they limit the 2.3GB deal only to iPhone users.
I still think Sprint brings a lot of value since all their plans offer unlimited mobile to mobile to any carrier and with AT&T you need the unlimited text option to get that and Verizon doesn't offer it at all. AT&T at least offers rollover minutes which helps. For people that talk a lot that is a major factor in pricing. 7am-7PM vs 6AM-9PM also can make a big difference. Verizon offers the poorest value in terms of what you get but also offer the best coverage.
Most people are probably getting a corporate discount between 10 to 25%. I get 23% so I would only pay $59 a month for the 450 minute plan on Sprint. I actually pay less at $50/mo since I am on a special plan called SERO no longer offered to the public. But it is nice to see new competition and options for people who may have very different usage patterns and needs. Cricket seems like a good deal for some people and the coverage here in Georgia according to my friend at least is very good.
It wasn't that long ago that if you wanted an iPhone you had only one choice with AT&T. My how times have changed.
Verizon: $79.79 (450 min to landline or other carriers, 2GB data, no text plan) (Anytime 6AM to 9PM /no unlimited mobile to mobile except in-network)
AT&T: $79.79 (450 min. talk to landline or other carriers , 3GB data, no text plan) (Anytime 6AM to 9PM/ no unlimited mobile to mobile except in-network)
Sprint: $89.79 Unlimited mobile to mobile talk/text/data (450 min. talk for landline calls 7AM to 7PM M-F)
Sprint: $119.79 (unlimited talk/text/data)
Verizon: $129.79 (unlimited talk/text, 2GB data)
AT&T: $129.79 (unlimited talk/text, 3GB data)
The plans in blue are similar offerings (unlimited talk, unlimited text and 2-3GB of cellular data). The plans in red are those with limited voice (and in the case of Verizon and AT&T, no text plan).
There's also H20 Wireless. Buy an unlocked iPhone from Apple, and you can get unlimited talk, text, and 500 MB data for only $50/month. H20 uses the AT&T network so you get good coverage and speed. It's stupid to pay for a contract plan when you can save so much money by buying the phone.
Let me elaborate... I see the fact that you can get iPhones as prepaid in the US as a sign of change:
US has had prepaid before; IPhone can be bought prepaid outside of the US; what's new is that the phone maker that has benefited most from the US subscription model is trying the alternative.
I'm sure someone else knows specifically when Apple started doing this but anyone in the USA has been able to buy an unlocked GSM iPhone directly from Apple for quite awhile now.
There's also H20 Wireless. Buy an unlocked iPhone from Apple, and you can get unlimited talk, text, and 500 MB data for only $50/month. H20 uses the AT&T network so you get good coverage and speed. It's stupid to pay for a contract plan when you can save so much money by buying the phone.
Again, we really need to compare plans that have 2-3GB of cellular data per month, since that's what Straight Talk and Cricket offer. It looks like H2O Wireless throttles data after 500MB on their 2GB plan ($60). But in any case, let's do the cost analysis.
H2O Wireless (500MB): $649 factory unlocked iPhone 4S from Apple, $10 SIM (one-time charge), $50 per month for unlimited talk/text + 500MB data. Total cost of ownership over two years: $1859
H2O Wireless (2GB, throttled after first 500MB): $649 factory unlocked iPhone 4S from Apple, $10 SIM (one-time charge), $60 per month for unlimited talk/text + 2GB data (throttled after first 500MB). Total cost of ownership over two years: $2099
Including gwmac and the_steve's additions:
Monthly cost of ownership (over 24 months):
Straight Talk: $72.67 (unlimited talk/text, 2GB data, no international calling on this plan rate)
Cricket: $75.83 (unlimited talk/text, 2.3GB data)
Verizon: $79.79 (450 min to landline or other carriers, 2GB data, no text plan) (Anytime 6AM to 9PM /no unlimited mobile to mobile except in-network)
AT&T: $79.79 (450 min. talk to landline or other carriers , 3GB data, no text plan) (Anytime 6AM to 9PM/ no unlimited mobile to mobile except in-network)
H2O Wireless: $77.46 (unlimited talk/text, 500MB of data, some international calling)
H2O Wireless: $87.46 (unlimited talk/text, 2GB of data, speed throttled after first 500MB, some international calling)
Sprint: $89.79 (450 min. talk for landline calls, unlimited text/data) Anytime 7AM to 7PM Unlimited mobile to mobile)
Sprint: $119.79 (unlimited talk/text/data)
Verizon: $129.79 (unlimited talk/text, 2GB data)
AT&T: $129.79 (unlimited talk/text, 3GB data)
The plans in blue are similar offerings (unlimited talk, unlimited text and 2-3GB of cellular data). The plans in red are those with limited voice (and in the case of Verizon and AT&T, no text plan).
Quote:
Originally Posted by Hudson1
I'm sure someone else knows specifically when Apple started doing this but anyone in the USA has been able to buy an unlocked GSM iPhone directly from Apple for quite awhile now.
Apple started selling off-contract iPhones at full retail price a couple of years ago in the USA, but they were still carrier locked to AT&T. Only in June of last year did they start selling a factory-unlocked iPhone 4.
Few people want to buy an unlocked phone up front for $650 and that is only for the 16GB model. Cricket at least is offering a small subsidy. That is also why I took issue with the 24 month comparison. Sprint allows full upgrade credit at 20 months. What is AT&T and Verizon's policy?
I certainly plan to upgrade at 20 months on June 1, 2013 and possibly a lot sooner if the 2012 iPhone blows me away. At 1 year I would have to pay more than $199, but if I sold my current 4S which is in pristine condition I probably wouldn't ended up paying more than $350 out of pocket with the 1 year upgrade credit added.
That is the real issue with pre-paid is the high upfront cost and having to keep your phone a lot longer to see any real savings. 20 months is the maximum I want to keep a phone.
To be fair, we should be comparing similar service levels, i.e., unlimited talk, unlimited text, and 2-3GB of cellular data since that's what Straight Talk and Cricket offer.
Thus, Sprint would be $199 subsidized handset, $36 activation fee, $110/month for unlimited talk/text/data. Total cost of ownership over 24 months: $2875.
Verizon's costs would be identical to AT&T's.
Note that even if you went with the smallest voice plan on AT&T and Verizon and eliminated texting yet retained 2-3GB of cellular data, you'd still have a monthly cost of ownership of $79.79.
Verizon: $79.79 (450 min. talk, 2GB data, no text plan)
AT&T: $79.79 (450 min. talk, 3GB data, no text plan)
Sprint: $89.79 (450 min. talk, unlimited text/data)
Sprint: $119.79 (unlimited talk/text/data)
Verizon: $129.79 (unlimited talk/text, 2GB data)
AT&T: $129.79 (unlimited talk/text, 3GB data)
It still makes more sense to use Straight Talk since you're basically saving a few bucks off similar cellular data service from Verizon and AT&T, and they're basically tossing in unlimited talk and text.
Note that I'm only comparing currently available cellular plans, not something that someone has been grandfathered into.
That underestimates the difference for several reasons:
1. You can buy the iPhone unlocked (new) on eBay for less than the list price of $649. That would reduce the price of Cricket and Straight Talk
2. You're ignoring the overage charges. With AT&T and Verizon, as soon as you hit your data or minutes limit, the charges escalate quickly.
3. How many people do you know with a cell phone who never send or receive a text? You really need to add at least the base text plan for AT&T and Verizon.
4. There are a ton of extra charges on AT&T that it's easy to get hit with.
5. You can leave Straight Talk or Cricket at any time. Cancellation charges can be hundreds of dollars.
Yes, it does but doing the baseline analysis is the simplest.
1. I'm using the Apple Store retail price since it's a comparable storefront to carrier stores or Apple selling carrier-subsidized phones. It wouldn't be fair to use the Dodgy Bros. Cellular eBay Store since they don't sell AT&T-subsidized iPhones with two-year contracts.
2. Yes, I am ignoring overage charges. For the purposes of this analysis, we need to assume that people have read the fine print in advance and are using the plans in the way they were intended. If you are constantly going over your voice or data limits, you have clearly picked the wrong plan. In the same way, I wouldn't do a cost analysis of vehicles for a family of six that was constantly renting a minivan because their Mazda Miata was insufficiently sized.
3. Again, people will need to read the fine print and decide if the text plan is suitable. I would never pay for a separate text plan since I use Google Voice and their free SMS capability. I didn't pay for texts when I was using a GoPhone SIM. It worked fine. I can't assume how many texts anyone gets. For that matter, my mom never texts.
4. I believe you. Again, I am operating under the assumption here that the plan is used in the manner in which it is intended.
5. Yes, however my cost of ownership analysis is for a two-year period since those are the typical contract terms for a subsidized handset. Most people don't leave their contract in the middle.
Conversely, Straight Talk and Cricket could increase their monthly rates at any time. With a two-year contract at AT&T, Verizon, and Sprint, those terms and rates are locked until the contract expires.
I purposely avoided including international calling/texting since charges vary by carrier and destination. Anyhow, there are affordable international calling services (like Google Voice) that pretty much level the playing field. Google Voice call charges are the same regardless if you're using an iPhone, iPad, or iPod touch, some other smartphone or even your PC.
But since you brought it up, let's do a cost of ownership analysis over twelve months for Straight Talk and AT&T (similar service levels) with the cancellation charge for the latter.
Straight Talk: $649 factory unlocked iPhone 4S, $15 SIM, $45 per month for twelve months (price includes unlimited talk/text, cellular data 2GB soft cap). Cancellation charge: zero dollars. Total cost of ownership: $1204
AT&T: $199 subsidized iPhone 4S, $36 activation fee, $120 per month for twelve months ($70 unlimited talk, $20 unlimited text, $30 cellular data 3GB). $325 Early Termination Fee minus $10 per month for each month of service = $205. Total cost of ownership: $1880
Total cost of ownership over 12 months (including any cancellation charges):
Straight Talk: $100.33
AT&T: $156.67
Of course, I'm not going to delve into every single possible cost analysis, and I have purposely ignored plans that people have been grandfathered into since there's only applicable to those still on them.
Few people want to buy an unlocked phone up front for $650 and that is only for the 16GB model. Cricket at least is offering a small subsidy. That is also why I took issue with the 24 month comparison. Sprint allows full upgrade credit at 20 months. What is AT&T and Verizon's policy?
I certainly plan to upgrade at 20 months on June 1, 2013 and possibly a lot sooner if the 2012 iPhone blows me away. At 1 year I would have to pay more than $199, but if I sold my current 4S which is in pristine condition I probably wouldn't ended up paying more than $350 out of pocket with the 1 year upgrade credit added.
That is the real issue with pre-paid is the high upfront cost and having to keep your phone a lot longer to see any real savings. 20 months is the maximum I want to keep a phone.
Assuming AT&T is also 20 months, then I think Apple is saving the big 3 carriers a ton of money. Even though iPhone owners on all 3 big networks can get a new iPhone after 20 months, since Apple only releases a new model once a year many if not most of those people would probably just decide to wait another 3 or 4 months for the next iPhone and skip a version. Obviously there are phone whores who want the new iPhone every year on the release date but those people are in the minority. So AT&T, Sprint, and Verizon can mostly count on getting 24 months of payment from most iPhone customers before they have to subsidize their next iPhone for about $450.
Android phone owners on the other hand are rarely loyal to Samsung, HTC, LG, or Motorola even if they are loyal to Android. When their upgrade credit is ready in 20 months, there is a greater likelihood they will get whatever the latest and greatest Android handset they happen to be selling at that time. Assuming they aren't loyal to Android, they might also get an iPhone or try out a Windows phone. The iPhone loyalty rate ends up saving the carriers a lot of money by spreading the upgrade out to 24 months instead of 20. Obviously I am not trying to make a blanket statement, but I would wager more iPhone owners tend to skip a generation and wait for the next iPhone than happens with other phones. I wonder if their are any statistics out there to see if iPhone owners tend to renew 24 months to get the latest iPhone vs. Android owners.
Few people want to buy an unlocked phone up front for $650 and that is only for the 16GB model. Cricket at least is offering a small subsidy. That is also why I took issue with the 24 month comparison. Sprint allows full upgrade credit at 20 months. What is AT&T and Verizon's policy?
I certainly plan to upgrade at 20 months on June 1, 2013 and possibly a lot sooner if the 2012 iPhone blows me away. At 1 year I would have to pay more than $199, but if I sold my current 4S which is in pristine condition I probably wouldn't ended up paying more than $350 out of pocket with the 1 year upgrade credit added.
That is the real issue with pre-paid is the high upfront cost and having to keep your phone a lot longer to see any real savings. 20 months is the maximum I want to keep a phone.
The break even point for Straight Talk is at month 6. The longer you use a device on Straight Talk, the cheaper the total cost of ownership.
But okay, here's quickie 20-month analysis of Straight Talk and AT&T:
Straight Talk: $649 factory-unlocked iPhone 4S, $15 SIM (one-time charge), $45 per month for 20 months. Total cost of ownership: $1564
AT&T: $199 subsidized iPhone 4S, $36 activation fee, $120 per month for 20 months. Total cost of ownership $2635
Let's take this a step further and pretend to upgrade to the next generation device.
Straight Talk: $649 factory-unlocked sixth-generation iPhone, keep using the same SIM (no charge), $45 per month for 20 months. Total cost of ownership: $1549
AT&T: $199 subsidized sixth-generation iPhone, $36 upgrade fee, $120 per month for 20 months. Total cost of ownership: $2635
Total cost of ownership, 40-month timeframe over two generations of handsets:
Straight Talk: $77.83
AT&T: $131.75
Still a 41% discount from Straight Talk in total cost of ownership using 20-month handset buying cycles versus the 44% saved in 24-month buying cycle.
The comparisons in this discussion have been fantastic. I send much appreciation to cvaldes for the great numbers.
I suspect something has been altered in recent negotiations with Apple and also with the various carriers. PagePlus hasn't put it on their website yet and it has only been confirmed by a couple dealers who also frequent Howard Forums, but they are claiming that Page Plus now allows activation of used iPhone 4/4S's from Verizon on their prepaid service and also have changed their "55" plan to unlimited talk/text and 2 gigs of data for $55.00 a month.
I've got an Android phone I'm messing around with on Page Plus right now and if you don't need much data, they really have some amazing offerings in my opinion. I put my Motorola Droid X2 (a promising phone spec-wise but has some audio issues in reality) on their "12" plan which is $12 a month for 250 voice/250 text and 10 megs data. This next month when I am out camping in areas that AT&T fears to go, I will have that same phone (X2) on their $30 "Talk and Text" plan which gives 1200 voice minutes/3000 text messages and 100 megs of data.
Page Plus has had no qualms about allowing Android phones on the lower priced plans since they aren't subsidizing anyone on any phone. Per Howard Forums, they have just now been allowed to activate the iPhone as well. While the data quantities are not large, those prices are quite amazing for having smartphones on Verizon's network. We are talking about the ability to have an iPhone 4/4S working for $12 a month.
The break even point for Straight Talk is at month 6. The longer you use a device on Straight Talk, the cheaper the total cost of ownership.
But okay, here's quickie 20-month analysis of Straight Talk and AT&T:
Straight Talk: $649 factory-unlocked iPhone 4S, $15 SIM (one-time charge), $45 per month for 20 months. Total cost of ownership: $1564
AT&T: $199 subsidized iPhone 4S, $36 activation fee, $120 per month for 20 months. Total cost of ownership $2635
Let's take this a step further and pretend to upgrade to the next generation device.
Straight Talk: $649 factory-unlocked sixth-generation iPhone, keep using the same SIM (no charge), $45 per month for 20 months. Total cost of ownership: $1549
AT&T: $199 subsidized sixth-generation iPhone, $36 upgrade fee, $120 per month for 20 months. Total cost of ownership: $2635
Total cost of ownership, 40-month timeframe over two generations of handsets:
Straight Talk: $77.83
AT&T: $131.75
Still a 41% discount from Straight Talk in total cost of ownership using 20-month handset buying cycles versus the 44% saved in 24-month buying cycle.
I agree, your break downs have been very useful. Even though your numbers clearly show there is more value from the likes of Straightalk, pageplus, cricket, etc...there are a number of reasons many people tend to stay with the big 4. Aside from coverage, I think a lot of people get very good corporate discounts. Perhaps most people in fact get some kind of discount. Sprint for example gives anyone with a credit union account 10% and I think anyone with an aol.com email address as well. Most people that get a corporate discount would get around 15%to 25%, but if you don't qualify for those that 10% is a nice bonus. Another group that chooses to stay would be certain grandfathered customers. Take me for example, why would I leave Sprint when I get an iPhone with unlimited data, unlimited texts, unlimited mobile calling, and 500 anytime to landline minutes for only $50 a month and qualify for a subsidized $199 iPhone every 20 months. It also helps that I get great Sprint coverage and speeds where I live and already have LTE ready to go for the next iPhone. Cricket for me would be more expensive with less perks.
But for people without any discounts at all, pre-paid is a nice alternative and I think your break down is very useful for people to compare so I salute the work you put into it.
Those are good points and interestingly enough, could point at the value of some of these plans in high tax states vs low tax states. I live in California and when I have a post-paid cell plan, I am charged sales tax on it along with several other smaller taxes. I give Straight Talk $45 a month for my phone and that price is the total. On Verizon, I save 15% on the plan, not the additional services added to it like data and the savings basically off-sets the cost of the various taxes. Perhaps there is more savings in other states but for me, the discount is basically a wash since all it does it remove taxes from my equation.
Those are good points and interestingly enough, could point at the value of some of these plans in high tax states vs low tax states. I live in California and when I have a post-paid cell plan, I am charged sales tax on it along with several other smaller taxes. I give Straight Talk $45 a month for my phone and that price is the total. On Verizon, I save 15% on the plan, not the additional services added to it like data and the savings basically off-sets the cost of the various taxes. Perhaps there is more savings in other states but for me, the discount is basically a wash since all it does it remove taxes from my equation.
On my $50 monthly bill for my Sprint iPhone, I pay $7.57 in various taxes and fees so that is a valid point. I am sure those prepaid plans have to pay the same taxes but they seem to absorb it into their costs.
Those are good points and interestingly enough, could point at the value of some of these plans in high tax states vs low tax states. I live in California and when I have a post-paid cell plan, I am charged sales tax on it along with several other smaller taxes. I give Straight Talk $45 a month for my phone and that price is the total. On Verizon, I save 15% on the plan, not the additional services added to it like data and the savings basically off-sets the cost of the various taxes. Perhaps there is more savings in other states but for me, the discount is basically a wash since all it does it remove taxes from my equation.
I'm a California resident as well and oddly enough, $0.94 in additional fees are added on top of Straight Talk's $45 monthly charge. I have set up auto-refill via a credit card.
Clearly, these aren't sales taxes since that would be over three bucks.
I was paying way less when I could still use AT&T GoPhone's PAYG $0.10/minute plan on my iPhone. There were no additional taxes. A $100 service card gave you $100 of GoPhone credit. Even better, at some online stores, you could get a nominal discount, like 10%. Pay $90 and get $100 worth of GoPhone credit; they just e-mail you the activation code. Unfortunately, AT&T wised up and eliminated data packages for the $0.10/min plan. That was a total bargain for people with very few voice calls, minimal/no texts, and modest data. I was spending about $12-13 per month on cellular services. (sigh) Those days are gone.
Last time I check America is not only the US; in my country, Mexico, we've have the iPhone sold contract-free since the iPhone 3G and around the time the iPhone 4 came out, Apple started selling them on its website too.
Last time I check America is not only the US; in my country, Mexico
The justification I've seen for that is the USA is the only country with "America" in its name. In short, I don't think anyone was talking about the continents.
Comments
Quote:
Originally Posted by gwmac
Not true, Cricket only offers 1GB of data not unlimited like Sprint. I don't know where AI got that 2.3GB figure from, go to Cricket and see for yourself. And Straightalk also in reality only offers 2GB before you get nasty warnings, same as Pageplus. Only Sprint offers truly unlimited data that is also not throttled after a set amount and free from text warnings calling you a data hog threatening to cancel your service.
Cricket's 2.3GB soft cap is explicitly stated in the press release:
http://leapwireless.mediaroom.com/2012-05-31-Cricket-Wireless-to-Offer-iPhone-on-June-22
I noted the 2GB limit with Straight Talk earlier.
Quote:
Originally Posted by cvaldes1831
Straight Talk "Bring Your Own Phone" SIM card, $45/month no-contract. Unlimited talk, unlimited text, and "unlimited" data (which anecdotally has a soft cap around 2GB followed by an allegedly "you're a data hog" message). Just buy the unlocked retail iPhone 4S at Apple.com for $649 plus the one-time $15 for the SIM card. Your phone will be connecting to AT&T's cellular towers. If you're in an area with HSPA+, you'll have the faster connection. Total cost of ownership over 24 months: $1744
Here's the detailed table.
Monthly cost of ownership (over 24 months):
Straight Talk: $72.67 (unlimited talk/text, 2GB data)
Cricket: $75.83 (unlimited talk/text, 2.3GB data)
Verizon: $79.79 (450 min. talk, 2GB data, no text plan)
AT&T: $79.79 (450 min. talk, 3GB data, no text plan)
Sprint: $89.79 (450 min. talk, unlimited text/data)
Sprint: $119.79 (unlimited talk/text/data)
Verizon: $129.79 (unlimited talk/text, 2GB data)
AT&T: $129.79 (unlimited talk/text, 3GB data)
The plans in blue are similar offerings (unlimited talk, unlimited text and 2-3GB of cellular data). The plans in red are those with limited voice (and in the case of Verizon and AT&T, no text plan).
Quote:
Originally Posted by cvaldes1831
Cricket's 2.3GB soft cap is explicitly stated in the press release:
http://leapwireless.mediaroom.com/2012-05-31-Cricket-Wireless-to-Offer-iPhone-on-June-22
I noted the 2GB limit with Straight Talk earlier. Here's the complete table.
Monthly cost of ownership (over 24 months):
Straight Talk: $72.67 (unlimited talk/text, 2GB data)
Cricket: $75.83 (unlimited talk/text, 2.3GB data)
Verizon: $79.79 (450 min. talk, 2GB data, no text plan)
AT&T: $79.79 (450 min. talk, 3GB data, no text plan)
Sprint: $89.79 (450 min. talk, unlimited text/data)
Sprint: $119.79 (unlimited talk/text/data)
Verizon: $129.79 (unlimited talk/text, 2GB data)
AT&T: $129.79 (unlimited talk/text, 3GB data)
So does that mean they will change their data allowance for all phones on their $55 a month plan or just for the iPhone? 2.3GB is actually a pretty generous amount for many people, 1 GB not so much. I can see a lot of pissed Android folk if they limit the 2.3GB deal only to iPhone users.
I still think Sprint brings a lot of value since all their plans offer unlimited mobile to mobile to any carrier and with AT&T you need the unlimited text option to get that and Verizon doesn't offer it at all. AT&T at least offers rollover minutes which helps. For people that talk a lot that is a major factor in pricing. 7am-7PM vs 6AM-9PM also can make a big difference. Verizon offers the poorest value in terms of what you get but also offer the best coverage.
Most people are probably getting a corporate discount between 10 to 25%. I get 23% so I would only pay $59 a month for the 450 minute plan on Sprint. I actually pay less at $50/mo since I am on a special plan called SERO no longer offered to the public. But it is nice to see new competition and options for people who may have very different usage patterns and needs. Cricket seems like a good deal for some people and the coverage here in Georgia according to my friend at least is very good.
It wasn't that long ago that if you wanted an iPhone you had only one choice with AT&T. My how times have changed.
Quote:
Fixed to add more info for fair comparison
Monthly cost of ownership (over 24 months):
Straight Talk: $72.67 (unlimited talk/text, 2GB data)
Cricket: $75.83 (unlimited talk/text, 2.3GB data)
Verizon: $79.79 (450 min to landline or other carriers, 2GB data, no text plan) (Anytime 6AM to 9PM /no unlimited mobile to mobile except in-network)
AT&T: $79.79 (450 min. talk to landline or other carriers , 3GB data, no text plan) (Anytime 6AM to 9PM/ no unlimited mobile to mobile except in-network)
Sprint: $89.79 Unlimited mobile to mobile talk/text/data (450 min. talk for landline calls 7AM to 7PM M-F)
Sprint: $119.79 (unlimited talk/text/data)
Verizon: $129.79 (unlimited talk/text, 2GB data)
AT&T: $129.79 (unlimited talk/text, 3GB data)
The plans in blue are similar offerings (unlimited talk, unlimited text and 2-3GB of cellular data). The plans in red are those with limited voice (and in the case of Verizon and AT&T, no text plan).
There's also H20 Wireless. Buy an unlocked iPhone from Apple, and you can get unlimited talk, text, and 500 MB data for only $50/month. H20 uses the AT&T network so you get good coverage and speed. It's stupid to pay for a contract plan when you can save so much money by buying the phone.
Quote:
Originally Posted by DrDoppio
Let me elaborate... I see the fact that you can get iPhones as prepaid in the US as a sign of change:
US has had prepaid before; IPhone can be bought prepaid outside of the US; what's new is that the phone maker that has benefited most from the US subscription model is trying the alternative.
I'm sure someone else knows specifically when Apple started doing this but anyone in the USA has been able to buy an unlocked GSM iPhone directly from Apple for quite awhile now.
Quote:
Originally Posted by the_steve
There's also H20 Wireless. Buy an unlocked iPhone from Apple, and you can get unlimited talk, text, and 500 MB data for only $50/month. H20 uses the AT&T network so you get good coverage and speed. It's stupid to pay for a contract plan when you can save so much money by buying the phone.
Again, we really need to compare plans that have 2-3GB of cellular data per month, since that's what Straight Talk and Cricket offer. It looks like H2O Wireless throttles data after 500MB on their 2GB plan ($60). But in any case, let's do the cost analysis.
H2O Wireless (500MB): $649 factory unlocked iPhone 4S from Apple, $10 SIM (one-time charge), $50 per month for unlimited talk/text + 500MB data. Total cost of ownership over two years: $1859
H2O Wireless (2GB, throttled after first 500MB): $649 factory unlocked iPhone 4S from Apple, $10 SIM (one-time charge), $60 per month for unlimited talk/text + 2GB data (throttled after first 500MB). Total cost of ownership over two years: $2099
Including gwmac and the_steve's additions:
Monthly cost of ownership (over 24 months):
Straight Talk: $72.67 (unlimited talk/text, 2GB data, no international calling on this plan rate)
Cricket: $75.83 (unlimited talk/text, 2.3GB data)
Verizon: $79.79 (450 min to landline or other carriers, 2GB data, no text plan) (Anytime 6AM to 9PM /no unlimited mobile to mobile except in-network)
AT&T: $79.79 (450 min. talk to landline or other carriers , 3GB data, no text plan) (Anytime 6AM to 9PM/ no unlimited mobile to mobile except in-network)
H2O Wireless: $77.46 (unlimited talk/text, 500MB of data, some international calling)
H2O Wireless: $87.46 (unlimited talk/text, 2GB of data, speed throttled after first 500MB, some international calling)
Sprint: $89.79 (450 min. talk for landline calls, unlimited text/data) Anytime 7AM to 7PM Unlimited mobile to mobile)
Sprint: $119.79 (unlimited talk/text/data)
Verizon: $129.79 (unlimited talk/text, 2GB data)
AT&T: $129.79 (unlimited talk/text, 3GB data)
The plans in blue are similar offerings (unlimited talk, unlimited text and 2-3GB of cellular data). The plans in red are those with limited voice (and in the case of Verizon and AT&T, no text plan).
Quote:
Originally Posted by Hudson1
I'm sure someone else knows specifically when Apple started doing this but anyone in the USA has been able to buy an unlocked GSM iPhone directly from Apple for quite awhile now.
Apple started selling off-contract iPhones at full retail price a couple of years ago in the USA, but they were still carrier locked to AT&T. Only in June of last year did they start selling a factory-unlocked iPhone 4.
http://www.appleinsider.com/articles/11/06/13/apple_to_sell_unlocked_iphone_4_for_649_icloud_mirroring_some_mobileme_web_services.html
The factory unlocked iPhone 4S started selling about a month after the initial iPhone 4S debut in the USA.
Few people want to buy an unlocked phone up front for $650 and that is only for the 16GB model. Cricket at least is offering a small subsidy. That is also why I took issue with the 24 month comparison. Sprint allows full upgrade credit at 20 months. What is AT&T and Verizon's policy?
I certainly plan to upgrade at 20 months on June 1, 2013 and possibly a lot sooner if the 2012 iPhone blows me away. At 1 year I would have to pay more than $199, but if I sold my current 4S which is in pristine condition I probably wouldn't ended up paying more than $350 out of pocket with the 1 year upgrade credit added.
That is the real issue with pre-paid is the high upfront cost and having to keep your phone a lot longer to see any real savings. 20 months is the maximum I want to keep a phone.
That underestimates the difference for several reasons:
1. You can buy the iPhone unlocked (new) on eBay for less than the list price of $649. That would reduce the price of Cricket and Straight Talk
2. You're ignoring the overage charges. With AT&T and Verizon, as soon as you hit your data or minutes limit, the charges escalate quickly.
3. How many people do you know with a cell phone who never send or receive a text? You really need to add at least the base text plan for AT&T and Verizon.
4. There are a ton of extra charges on AT&T that it's easy to get hit with.
5. You can leave Straight Talk or Cricket at any time. Cancellation charges can be hundreds of dollars.
Yes, it does but doing the baseline analysis is the simplest.
1. I'm using the Apple Store retail price since it's a comparable storefront to carrier stores or Apple selling carrier-subsidized phones. It wouldn't be fair to use the Dodgy Bros. Cellular eBay Store since they don't sell AT&T-subsidized iPhones with two-year contracts.
2. Yes, I am ignoring overage charges. For the purposes of this analysis, we need to assume that people have read the fine print in advance and are using the plans in the way they were intended. If you are constantly going over your voice or data limits, you have clearly picked the wrong plan. In the same way, I wouldn't do a cost analysis of vehicles for a family of six that was constantly renting a minivan because their Mazda Miata was insufficiently sized.
3. Again, people will need to read the fine print and decide if the text plan is suitable. I would never pay for a separate text plan since I use Google Voice and their free SMS capability. I didn't pay for texts when I was using a GoPhone SIM. It worked fine. I can't assume how many texts anyone gets. For that matter, my mom never texts.
4. I believe you. Again, I am operating under the assumption here that the plan is used in the manner in which it is intended.
5. Yes, however my cost of ownership analysis is for a two-year period since those are the typical contract terms for a subsidized handset. Most people don't leave their contract in the middle.
Conversely, Straight Talk and Cricket could increase their monthly rates at any time. With a two-year contract at AT&T, Verizon, and Sprint, those terms and rates are locked until the contract expires.
I purposely avoided including international calling/texting since charges vary by carrier and destination. Anyhow, there are affordable international calling services (like Google Voice) that pretty much level the playing field. Google Voice call charges are the same regardless if you're using an iPhone, iPad, or iPod touch, some other smartphone or even your PC.
But since you brought it up, let's do a cost of ownership analysis over twelve months for Straight Talk and AT&T (similar service levels) with the cancellation charge for the latter.
Straight Talk: $649 factory unlocked iPhone 4S, $15 SIM, $45 per month for twelve months (price includes unlimited talk/text, cellular data 2GB soft cap). Cancellation charge: zero dollars. Total cost of ownership: $1204
AT&T: $199 subsidized iPhone 4S, $36 activation fee, $120 per month for twelve months ($70 unlimited talk, $20 unlimited text, $30 cellular data 3GB). $325 Early Termination Fee minus $10 per month for each month of service = $205. Total cost of ownership: $1880
Total cost of ownership over 12 months (including any cancellation charges):
Straight Talk: $100.33
AT&T: $156.67
Of course, I'm not going to delve into every single possible cost analysis, and I have purposely ignored plans that people have been grandfathered into since there's only applicable to those still on them.
Quote:
Originally Posted by gwmac
Few people want to buy an unlocked phone up front for $650 and that is only for the 16GB model. Cricket at least is offering a small subsidy. That is also why I took issue with the 24 month comparison. Sprint allows full upgrade credit at 20 months. What is AT&T and Verizon's policy?
I certainly plan to upgrade at 20 months on June 1, 2013 and possibly a lot sooner if the 2012 iPhone blows me away. At 1 year I would have to pay more than $199, but if I sold my current 4S which is in pristine condition I probably wouldn't ended up paying more than $350 out of pocket with the 1 year upgrade credit added.
That is the real issue with pre-paid is the high upfront cost and having to keep your phone a lot longer to see any real savings. 20 months is the maximum I want to keep a phone.
Verizon Wireless is 20 months.
Quote:
Originally Posted by Hudson1
Verizon Wireless is 20 months.
Assuming AT&T is also 20 months, then I think Apple is saving the big 3 carriers a ton of money. Even though iPhone owners on all 3 big networks can get a new iPhone after 20 months, since Apple only releases a new model once a year many if not most of those people would probably just decide to wait another 3 or 4 months for the next iPhone and skip a version. Obviously there are phone whores who want the new iPhone every year on the release date but those people are in the minority. So AT&T, Sprint, and Verizon can mostly count on getting 24 months of payment from most iPhone customers before they have to subsidize their next iPhone for about $450.
Android phone owners on the other hand are rarely loyal to Samsung, HTC, LG, or Motorola even if they are loyal to Android. When their upgrade credit is ready in 20 months, there is a greater likelihood they will get whatever the latest and greatest Android handset they happen to be selling at that time. Assuming they aren't loyal to Android, they might also get an iPhone or try out a Windows phone. The iPhone loyalty rate ends up saving the carriers a lot of money by spreading the upgrade out to 24 months instead of 20. Obviously I am not trying to make a blanket statement, but I would wager more iPhone owners tend to skip a generation and wait for the next iPhone than happens with other phones. I wonder if their are any statistics out there to see if iPhone owners tend to renew 24 months to get the latest iPhone vs. Android owners.
Quote:
Originally Posted by gwmac
Few people want to buy an unlocked phone up front for $650 and that is only for the 16GB model. Cricket at least is offering a small subsidy. That is also why I took issue with the 24 month comparison. Sprint allows full upgrade credit at 20 months. What is AT&T and Verizon's policy?
I certainly plan to upgrade at 20 months on June 1, 2013 and possibly a lot sooner if the 2012 iPhone blows me away. At 1 year I would have to pay more than $199, but if I sold my current 4S which is in pristine condition I probably wouldn't ended up paying more than $350 out of pocket with the 1 year upgrade credit added.
That is the real issue with pre-paid is the high upfront cost and having to keep your phone a lot longer to see any real savings. 20 months is the maximum I want to keep a phone.
The break even point for Straight Talk is at month 6. The longer you use a device on Straight Talk, the cheaper the total cost of ownership.
But okay, here's quickie 20-month analysis of Straight Talk and AT&T:
Straight Talk: $649 factory-unlocked iPhone 4S, $15 SIM (one-time charge), $45 per month for 20 months. Total cost of ownership: $1564
AT&T: $199 subsidized iPhone 4S, $36 activation fee, $120 per month for 20 months. Total cost of ownership $2635
Let's take this a step further and pretend to upgrade to the next generation device.
Straight Talk: $649 factory-unlocked sixth-generation iPhone, keep using the same SIM (no charge), $45 per month for 20 months. Total cost of ownership: $1549
AT&T: $199 subsidized sixth-generation iPhone, $36 upgrade fee, $120 per month for 20 months. Total cost of ownership: $2635
Total cost of ownership, 40-month timeframe over two generations of handsets:
Straight Talk: $77.83
AT&T: $131.75
Still a 41% discount from Straight Talk in total cost of ownership using 20-month handset buying cycles versus the 44% saved in 24-month buying cycle.
The comparisons in this discussion have been fantastic. I send much appreciation to cvaldes for the great numbers.
I suspect something has been altered in recent negotiations with Apple and also with the various carriers. PagePlus hasn't put it on their website yet and it has only been confirmed by a couple dealers who also frequent Howard Forums, but they are claiming that Page Plus now allows activation of used iPhone 4/4S's from Verizon on their prepaid service and also have changed their "55" plan to unlimited talk/text and 2 gigs of data for $55.00 a month.
I've got an Android phone I'm messing around with on Page Plus right now and if you don't need much data, they really have some amazing offerings in my opinion. I put my Motorola Droid X2 (a promising phone spec-wise but has some audio issues in reality) on their "12" plan which is $12 a month for 250 voice/250 text and 10 megs data. This next month when I am out camping in areas that AT&T fears to go, I will have that same phone (X2) on their $30 "Talk and Text" plan which gives 1200 voice minutes/3000 text messages and 100 megs of data.
Page Plus has had no qualms about allowing Android phones on the lower priced plans since they aren't subsidizing anyone on any phone. Per Howard Forums, they have just now been allowed to activate the iPhone as well. While the data quantities are not large, those prices are quite amazing for having smartphones on Verizon's network. We are talking about the ability to have an iPhone 4/4S working for $12 a month.
Quote:
Originally Posted by cvaldes1831
The break even point for Straight Talk is at month 6. The longer you use a device on Straight Talk, the cheaper the total cost of ownership.
But okay, here's quickie 20-month analysis of Straight Talk and AT&T:
Straight Talk: $649 factory-unlocked iPhone 4S, $15 SIM (one-time charge), $45 per month for 20 months. Total cost of ownership: $1564
AT&T: $199 subsidized iPhone 4S, $36 activation fee, $120 per month for 20 months. Total cost of ownership $2635
Let's take this a step further and pretend to upgrade to the next generation device.
Straight Talk: $649 factory-unlocked sixth-generation iPhone, keep using the same SIM (no charge), $45 per month for 20 months. Total cost of ownership: $1549
AT&T: $199 subsidized sixth-generation iPhone, $36 upgrade fee, $120 per month for 20 months. Total cost of ownership: $2635
Total cost of ownership, 40-month timeframe over two generations of handsets:
Straight Talk: $77.83
AT&T: $131.75
Still a 41% discount from Straight Talk in total cost of ownership using 20-month handset buying cycles versus the 44% saved in 24-month buying cycle.
I agree, your break downs have been very useful. Even though your numbers clearly show there is more value from the likes of Straightalk, pageplus, cricket, etc...there are a number of reasons many people tend to stay with the big 4. Aside from coverage, I think a lot of people get very good corporate discounts. Perhaps most people in fact get some kind of discount. Sprint for example gives anyone with a credit union account 10% and I think anyone with an aol.com email address as well. Most people that get a corporate discount would get around 15%to 25%, but if you don't qualify for those that 10% is a nice bonus. Another group that chooses to stay would be certain grandfathered customers. Take me for example, why would I leave Sprint when I get an iPhone with unlimited data, unlimited texts, unlimited mobile calling, and 500 anytime to landline minutes for only $50 a month and qualify for a subsidized $199 iPhone every 20 months. It also helps that I get great Sprint coverage and speeds where I live and already have LTE ready to go for the next iPhone. Cricket for me would be more expensive with less perks.
But for people without any discounts at all, pre-paid is a nice alternative and I think your break down is very useful for people to compare so I salute the work you put into it.
Those are good points and interestingly enough, could point at the value of some of these plans in high tax states vs low tax states. I live in California and when I have a post-paid cell plan, I am charged sales tax on it along with several other smaller taxes. I give Straight Talk $45 a month for my phone and that price is the total. On Verizon, I save 15% on the plan, not the additional services added to it like data and the savings basically off-sets the cost of the various taxes. Perhaps there is more savings in other states but for me, the discount is basically a wash since all it does it remove taxes from my equation.
Quote:
Originally Posted by trumptman
Those are good points and interestingly enough, could point at the value of some of these plans in high tax states vs low tax states. I live in California and when I have a post-paid cell plan, I am charged sales tax on it along with several other smaller taxes. I give Straight Talk $45 a month for my phone and that price is the total. On Verizon, I save 15% on the plan, not the additional services added to it like data and the savings basically off-sets the cost of the various taxes. Perhaps there is more savings in other states but for me, the discount is basically a wash since all it does it remove taxes from my equation.
On my $50 monthly bill for my Sprint iPhone, I pay $7.57 in various taxes and fees so that is a valid point. I am sure those prepaid plans have to pay the same taxes but they seem to absorb it into their costs.
I pay:
$0.75 state sales tax,
$1.50 911 tax
$0.56 county sales tax
$0.97 Federal-Univ Serv Assess Non-LD
These last two charges seem questionable.
$0.80 Regulatory Charge
$3.00 Administrative Charge
Quote:
Originally Posted by trumptman
Those are good points and interestingly enough, could point at the value of some of these plans in high tax states vs low tax states. I live in California and when I have a post-paid cell plan, I am charged sales tax on it along with several other smaller taxes. I give Straight Talk $45 a month for my phone and that price is the total. On Verizon, I save 15% on the plan, not the additional services added to it like data and the savings basically off-sets the cost of the various taxes. Perhaps there is more savings in other states but for me, the discount is basically a wash since all it does it remove taxes from my equation.
I'm a California resident as well and oddly enough, $0.94 in additional fees are added on top of Straight Talk's $45 monthly charge. I have set up auto-refill via a credit card.
Clearly, these aren't sales taxes since that would be over three bucks.
I was paying way less when I could still use AT&T GoPhone's PAYG $0.10/minute plan on my iPhone. There were no additional taxes. A $100 service card gave you $100 of GoPhone credit. Even better, at some online stores, you could get a nominal discount, like 10%. Pay $90 and get $100 worth of GoPhone credit; they just e-mail you the activation code. Unfortunately, AT&T wised up and eliminated data packages for the $0.10/min plan. That was a total bargain for people with very few voice calls, minimal/no texts, and modest data. I was spending about $12-13 per month on cellular services. (sigh) Those days are gone.
Quote:
Originally Posted by oberpongo
No 3GS as cricket is CDMA and 3GS is GSM.
Wonder if the GSM portion of the 4S is unlocked.
Yes at $500 down it is certainly a prepaid phone.
But CDMA is not the phone transmission technology which is very portable in other countries.
In Canada, England and Europe iPhones are GSM.
Last time I check America is not only the US; in my country, Mexico, we've have the iPhone sold contract-free since the iPhone 3G and around the time the iPhone 4 came out, Apple started selling them on its website too.
The justification I've seen for that is the USA is the only country with "America" in its name. In short, I don't think anyone was talking about the continents.