No more two-year contracts and subsidized phones for new Sprint subscribers?

No more two-year contracts and subsidized phones for new Sprint subscribers?
An internal memo meant for the eyes of Sprint reps only, reveals that the two-year smartphone contract for new accounts has passed away in its sleep. It is survived by installment contracts and lease plans that require monthly payments. Today happens to be the day that AT&T also stops offering subsidized phones and two-year pacts.

If the Sprint memo is legit, all four major U.S. carriers have ended the long time practice. And while the installment plans currently in use don't require a consumer to be locked in for a two-year period, they do demand that subscribers pay the full balance of what is owed if they leave their current carrier.

T-Mobile gets the credit for starting the current trend back in 2013. The mobile operator, then the nation's fourth largest carrier, hadn't even started selling the Apple iPhone yet when it started offering its Value Plan that included monthly installment payments for equipment.

While Sprint will no longer sell subsidized handsets to those opening a new account, the memo says that tablets can still be purchased using a subsidy. Equipment purchased with an upgrade or with the addition of a new line can also employ a subsidy. New Sprint customers looking to purchase a phone will have to use the Easy Pay installment plan, or lease the new device if they don't want to pay the full retail price at the time of purchase.


source: AndroidCentral

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21 Comments

1. eman99

Posts: 410; Member since: Aug 03, 2010

This is so ludicrous how are you suppose to pay your bill plus a monthly fee for a phone with a family adds up to nonsense might of just by unlocked for now on

6. Geezy0315

Posts: 13; Member since: Oct 15, 2015

Because they have plans now that includes the lease fee for the phone. I know best buy has their own sprint plans

7. QWERTYphone

Posts: 654; Member since: Sep 22, 2014

So, are we getting $450 off of our bills for the next 2 years? NO. THEY JUST RAISED THEIR MONTHLY SERVICE CHARGES BY $450 OVER 2 YEARS !!!! F all these carriers !!!!

9. Bernoulli

Posts: 4362; Member since: Sep 01, 2012

Aw too expensive for you? Go sit in a corner. Sorry, still salty about the racist comments you made about black people the other day. You never offered an apology for that.

11. QWERTYphone

Posts: 654; Member since: Sep 22, 2014

Expensive for me? LOL I was commenting on the fact that consumers are oblivious to this scam that the carriers are running. I will never apologize for speaking the truth. Go back to whatever 3rd world country your people crawled out of, or open your eyes to what's going on.

21. lp_522

Posts: 46; Member since: May 31, 2011

Agreed. Other than the 3rd world thing, ignorance runs through all people. Installments are scams for sure. "A fool and his money are soon parted." Until the day Wi-Fi is everywhere I am, and for free/reasonably priced, I need to have a phone and have to deal with the scam.

12. Gsmalltheway

Posts: 277; Member since: Aug 15, 2009

this makes sense. Lets take a look at ATT and its old plans with 2 yr contract.... 450 min= $39.99....Unl min was even more unl text= $20 2gb data plan = $25 TOTAL $84.99 monthly NEW MOBILE SHARE 2gb with unl talk and text = $55 a month....that means if you get a galaxy s6 which is $19.50 a month YOU SAVE MONEY

17. tuminatr

Posts: 1158; Member since: Feb 23, 2009

Your right in this case but how about this 450min $32 (company discount) 1000 txt $10 Data ULMT $24 (company discount) 8.33/ month ($200 cost of phone bought on contract divided by 24 months) = 74/ month I average 6-7gb per month So new plans $80 for 12gb (not sure if this gets a company discount) $20 for unlimited talk and text LG G4 $18.83/ month =118.33/month or $102.83 if the company discount applies cell carriers do what makes them the most money in the marketplace

18. Gsmalltheway

Posts: 277; Member since: Aug 15, 2009

you may be thinking of verizon.... with att the unl talk and text is included, no $20 for that

2. Hexa-core

Posts: 2131; Member since: Aug 11, 2015

The 2-year contract definitely should end! It's more like extortion and a bait to lock people into carrier "loyalty".

4. lp_522

Posts: 46; Member since: May 31, 2011

You realize that you still have to pay the remaining phone balance due if you stop paying for their services, Hexa-core? It is the same thing as paying an ETF. Example.. If you bought an iPhone 6s Plus and only paid 6 months of it and decided to stop paying you'd still have to pay the phone company the remaining ~$500.

10. Bernoulli

Posts: 4362; Member since: Sep 01, 2012

Or beat them at their own game and get a 100$ phone that does everything you need.

19. lp_522

Posts: 46; Member since: May 31, 2011

When the day comes I can't get a contract renewal as an existing customer, I may go the Google Store Nexus route. It makes the only sense.

3. DirtyDan23

Posts: 280; Member since: Aug 12, 2014

Nifty

5. true1984

Posts: 870; Member since: May 23, 2012

i think there should have at least been an option. the two year plan actually saved people a lot of money

13. Gsmalltheway

Posts: 277; Member since: Aug 15, 2009

When?

15. unotempopost

Posts: 2; Member since: Jan 10, 2016

Short version: (You save by paying $0.01-$250 for a 699.99 smartphone. New Plans= 699.99 over the course of 24months for new smartphone. |Savings of 450.00) The 2 year contract saves customers money because instead of paying 599-799 for brand new smartphones they are paying as low as a penny just to sign a 2 year deal. The carriers make their money from the contract always have always will. Outside of network implementation it cost them pennies to move data. Now they are getting greedy restricting data and they want money off of the phones too.

8. Doakie

Posts: 2478; Member since: May 06, 2009

Wait. No one has stopped to ask... Who are these new Sprint subscribers and how were they foolish enough to move to Sprint? Sprint still has 3G only in some places here by the Microsoft campus. I know because I have a FreedomPop phone as a backup play toy, and when my download speed is 100Kbps I am thankful I left Sprint and moved to AT&T with my primary phone line.

20. lp_522

Posts: 46; Member since: May 31, 2011

No one should pay for a service if it doesn't function properly. That said not everyone lives where you live. I have Sprint and I have great service.

14. Fabio81

Posts: 4; Member since: Aug 13, 2015

We all really like and want to buy the new phones etc... but I don't pay $600~$800 on a lock phone i am a samsung fan and if i had to pay this price i want to go on a samsung store or online and buy one unlock like you can do with iphone when i try to do this on the sum web direct you to carrier web site i still have Note 3 and works very good , when i need to change i will look for a used from year before or maybe buy a iphone when they decide to really make the best phone and the best experience like the SAM did with note on the last years and now with edge and folder phone, about the plans for me the best i see so for was when sprint had unlimited first two lines for 125 and the other lines add 20.00 this is back in 2007 . I wish every provider had plans with unlimited.

16. unotempopost

Posts: 2; Member since: Jan 10, 2016

This just means now you will pay more for the exact same phone just to pay $0 day one!?! The phone that cost 1 dollar on contract can cost almost 30 a month just to not have to pay 1 dollar today? Right atm you can buy an s6 for $1 on Sprint with 2years of service after you do the math you pay 1 dollar over the cost of a 2 year contract with the 2 year contract option, or you can pay about 500 over the cost of the 2 year contract with the lease and finally you pay 600 over the cost of the 2 year contract with the EZ Pay option. Anybody crazy enough to do that deserves what they get. You dont even get to bring the phone to another carrier when you are done. In my interpretation this just screams Sprint does not need new customers. Anyone stupid enough to be on Sprint without a SERO plan or something similar that brings the contract down to near prepaid levels deserves what they get.....no service. Before I do lease or EZ pay Ill do prepaid/unlocked/BYOD programs.

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