Sprint Brings Back Two-Year Contracts

Discussion in 'Android News' started by dgstorm, Feb 29, 2016.

  1. dgstorm

    dgstorm Editor in Chief
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    In August Sprint followed T-Mobile's lead by announcing they were getting rid of contracts. They only finalized it in January of this year. Despite that, the Now Network has already brought them back from the dead.

    Apparently, Sprint's rationale for this backwards step was simply listening to what their customers wanted. Here's a quote,

    "We listened to our customers and are giving them more choices to get their new device," Sprint spokeswoman Michelle Leff Mermelstein told FierceWireless. "Sprint is the only carrier to offer the most choices to obtain a new device -- lease, installment bill, two-year contract or pay full retail price."

    Indeed, Sprint's website this morning shows four options for customers to buy a new phone: They can lease devices, pay for them in monthly installments, ink a 24-month service contract, or pay for the full price for the gadget. For example, Sprint is selling the 16 GB iPhone 6s under a leasing model ($26.39 monthly), an installment model ($27.09 for 24 months), a contract model ($199.99 through a two-year contract), and full price for $649.99."


    What do you think of Sprint's move? Is it wise to give customers more options, or is this just a decision of desperation?
     
  2. RyanPm40

    RyanPm40 Active Member

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    Very smart. My Mom refuses to upgrade her iPhone 4 on Verizon because she doesn't want to pay an extra $30 a month for a phone when she bought the first iPhone outright for $100.
     
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  3. wicked

    wicked Administrator
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    More choices the better. So why not?
     
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  4. Xfactorx316

    Xfactorx316 Active Member

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    People love to have choices. A reversal in policy based on feedback from their customers sounds like a great idea to me!
     
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  5. xeene

    xeene Gold Member

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    Contracts are always good for customers who don't plan on jumping ships. They get devices for fraction of the cost.
     
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  6. PereDroid

    PereDroid DF News Team Reporter

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    Although they really never technically got rid of contracts, as we all remember. When they announced no contracts, there was that fine print that basically said "No contracts (unless the customer basically threatens to leave, then you give them a contract)."
     
  7. JKZ

    JKZ Member

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    The only problem with this line of thinking is that you really aren't saving any money over the course of the two year contract. You may pay less up front for the phone but then you pay a much higher monthly "line" fee for the phone. Over the course of the two years, you end up spending more money than if you would have just bought the phone outright and paid less per month line access. If you end up keeping the phone longer than two years like your mom, you really start to save even more when you buy the phone outright from the beginning.
     
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  8. kinfolk248

    kinfolk248 Active Member

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    Not really because I have never seen a price map showing monthly cost showing you'd a reduced fee for having your own phone. Whether you bring your phone or on contract, everyone paid the same dollar amount. Only diff was you were free to peace out with your own device. But now that things are somewhat different (not much, it's still a rip) you may get by with different terms and conditions who knows...
     
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  9. PereDroid

    PereDroid DF News Team Reporter

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    I was going to say the same thing. So many people say that ...there was no price difference if you brought your own phone.
    You got a reduced price in exchange for promising to stay for 2 years. Period. You didn't get a lower price if you brought your own phone. The price didn't drop after 2 years.
    This is why carriers ditched contracts. Now they make you pay for the phone. They lost money on contracts. Not any more.


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  10. JRParsons

    JRParsons Active Member

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    On Verizon The magic # is $480, that's the amount you pay over two years for a subsidized phone. So if you're getting a $800 phone for $200, you're total cost is $680, a savings of $120. If you're getting a $150 phone for free, you're total cost is $480 resulting in a loss of $320.

    Clear as mud?

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  11. JKZ

    JKZ Member

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    Just looking at Sprints website it shows two year contract, you pay $45/month line access. If you do installments or buy phone outright, its $20/month line access. So you save $25/month buying phone at full price. Just have to run the numbers and see which way is cheaper over two years. Usually the full price comes out to $100 - $200 cheaper depending on which phone.

    Verizon used to be $40/month on contract and $15/month off conteact. Thats what I'm still on. Now with their new plans, it's $40/month on contract and $20/month if you buy the phone or do installments. Still a little cheaper but not as good as old plans.

    Overall it's not a huge difference, but it's worth figuring out. If I can save $150 dollars over two years, why not.

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  12. xeene

    xeene Gold Member

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    That is so far from truth, it's stupid!
    Whether I buy phone for $800 or $200 on contract my unlimited everything on Verizon is still $10 a month. So on contract I save $600 right away.
     
    #12 xeene, Mar 1, 2016
    Last edited: Mar 1, 2016
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