Large carriers like AT&T and Verizon have no-contract options for purchasing new phones at full price. $650 may seem like a crazy amount of cash for a new iPhone or Galaxy out of contract, but lets take a comparison between the old 2 year contract option and the new out of contract option.
Lets use AT&T’s NEXT program as an example:
A breakdown of AT&T’s old family plans looks like this:
- 700 min plan – $60
- extra line – $10
- unlimited messaging – $30
- data for each phone – $30 (3gb or unlimited)
Total for 2 lines – $160
A breakdown of their new MobileShare plan:
- 10gb data – $100
- each phone with unlimited talk and text – $15 (no contract)
- $25 monthly on NEXT program for iPhone 6 64gb
- $25 monthly on NEXT program for iPhone 6 64gb
Total for 2 lines – $180 with no contract
Purchasing a Phone out of contract is also cheaper at time of purchase, with the difference being $300 on a two year contract versus about $0 down on NEXT (just remember sales tax).
Overall, purchasing a phone out of contract (NEXT) is comparable to purchasing a phone in contract.
