Bell Empire

So, I got this upsetting news today:

AT&T plans to drop two year contracts through third party retailers, Apple included.

What's this mean to consumers?  Well, if you're like me, and you're an iPhone owner, you would probably prefer to go to an Apple Store to buy your phone.  After all, it's their phone.  They know it best, and there's no commission involved.  Compare that to the vulture-like atmosphere at most AT&T or Verizon stores.  Not only are you harassed when you walk in the door, but the person who you finally have to deal with for the sale seems greasy...a hair above used-car salesman.

For the record, it goes like this: used-car salesman, cell phone company employee/Best Buy employee, realtor, etc.

(My apologies to the good realtors out there.  It's not your fault that you have to contend with Burger King, parking-lot, seagulls.)

The article linked above does say that you'll always be able to participate in the AT&T Next program.  That's the one where you can tack on the cost of the phone and spread it across your payments.  Nothing up front, and you get to pick how many months you want to go before upgrading to the next phone.  Your payment per month is determined by whether you want to pay off your phone in 12 months, 18 months or 24 months.  The longer you go, the less you pay for the phone...or rather, you pay what you would if it was a two-year contract.  Check out the Consumerist's calculations.  Unless you pick the 24-month plan, you pay more for the phone (and privilege of upgrading early). 

Basically, the only winner in this scheme is AT&T who will reap the benefit of people who want a lower monthly payment for a longer period of time.  It makes sense, but over 12 months, you're paying $150 more for the phone than you would in the traditional renew-in-two policies that have been prevalent ($190 more if you pick the 18mo plan).

Renew-in-two will still be in effect, but only if you go to an AT&T store so they can sell you the handset.  Also, it may be an option that third-party retailers can offer you renew-in-two, but only if the unit ships from AT&T...ultimately, giving AT&T the sale.

And, nobody wants to deal with AT&T for their phone.  They're a royal pain in the ass, and their employees are far less educated in the Apple models than Apple Store employees.  Simple math.  Oh, and don't think about going from giant to behemoth, Verizon has their own scam charges going on, like forcing you to pay for tethering, and not having simultaneous data/call functionality on older phones (iPhone 6 and up, not affected).  The long and the short of it is that, at least for the iPhone, we're all screwed...until this thing becomes popular, and we can go 5 minutes (mostly) disconnected from everyone.