Originally Posted by joshfalk
Do you remember where you heard this? It's the first I've heard about this aspect to the new plans, which means I may regret making the switch.
My understanding from the AT&T rep (and my bill) is that each smartphone in the value plans are now $40 per month with a $25 monthly credit, so net $15.
If I upgrade using a Next plan, the $25 credit remains. (Next = a 0% interest loan to purchase the phone over 20 months.)
If I upgrade using a 2-year subsidy, the $25 credit is removed. (Making for a really expensive upgrade-- 24 * $25 + $200 up front = $800 for an iPhone 5S that I could purchase outright for $650.) Not that I'd purchase a 5S, but just an example of how an already overpriced phone just got even more expensive.
Basically, they really do not want people buying subsidized phones, and that's fine with me. I'd rather purchase the phone I want on my own timing and pay for it outright.
Up until the value plans it made sense to do 2-year upgrades because AT&T was already padding their rate plans with the subsidy cost, whether you upgraded or BYOP you paid for it.
Now, it makes more sense to just BYOP.