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Two-year contracts and subsidized phone purchases are back at Sprint

Posted: , by Alan F.

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Two-year contracts and subsidized phone purchases are back at Sprint
Last month, a leaked memo allegedly revealed the end of two-year contracts and subsidized phone pricing at Sprint. But it appears that there has been a change at the nation's fourth largest carrier. The mobile operator has reportedly decided that the best way to give its customers more choices is to bring back the two-year contract.

Those Sprint customers looking to obtain a new handset now have four options. They can lease them, pay for them in monthly installments, pay the full retail price of the phone, or sign a 24-month service contract. Let's take a look at the 16GB Apple iPhone 6s, no doubt a popular choice at the carrier. Leasing the model will cost you $26.39 a month. The installment plan would work out to $27.09 a month over 24 months. $649.99 is the full retail price of the unit, and with a signed two-year pact the cost is $199.99 just like the good ol' days.

With leases, the carriers have more flexibility to offer quicker upgrades. Thanks to leasing, Sprint can offer things like their iPhone Forever and Galaxy Forever plans. These leasing deals allow you to impress your friends, family, co-workers, the boss and your dog by making sure that you're always rockin' the latest iPhone or Samsung Galaxy S handset. And with T-Mobile's JUMP! On Demand, consumers can upgrade to a new phone up to three times a year. Whether you lease or go for an installment plan, your out of pocket costs are lower at the time of purchase than if you signed a 24-month contract and purchased a subsidized handset.

If you have a decent memory, you probably recall that T-Mobile was the first of the carriers to end subsidized pricing and the two-year pact. The other guys followed suit, at least originally. Now it appears that the two-year contract to Sprint executives is like that ex boyfriend or girlfriend that you just can't stop coming back to no matter how bad he or she is for your mental or physical health.

source: FierceWireless

  • Options

posted on 26 Feb 2016, 16:11 4

1. eman99 (Posts: 392; Member since: 03 Aug 2010)

Good options just need more phone options

posted on 26 Feb 2016, 16:48 1

2. CedoNulli (Posts: 2; Member since: 25 Feb 2016)

Be aware. From what I'm seeing, once I get to the cart to check out with a galaxy s7 Edge on a two year contract, it pops up saying that a monthly subsidy fee of $25 will be added to the account at the time new new phone is activated.

Paying $350 up front for the 2 year contract price plus this $25 monthly fee for signing a contact (Really now?) ends up with you paying $950 total for the phone. $200 more then the $750 retail price. What the hell Sprint?

posted on 26 Feb 2016, 17:26 2

4. DnB925Art (Posts: 1059; Member since: 23 May 2013)

On the newer plans, but on grandfathered plans, such as SERO-P (my plan) or my wife's Everything Data 450, there is no monthly subsidy fee. I love SERO-P since I pay $50 for unlimited high speed data, text, unlimited mobile to mobile and nights and weekends and 500 minutes daytime to landlines and still get subsidies. I just wan]it for specials and sales to take advantage of the subsidy pricing. For example, I got my Note 4 for $50 back in October 2014 when it was $250 subsidy price but if you trade in an old phone (bought some janky phone from eBay for $10) you would get $200 cash back. SO cost to me was $60 + tax for the phone subsidized.

posted on 26 Feb 2016, 17:30 1

5. lp_522 (Posts: 46; Member since: 31 May 2011)

Subsidies have only benefitted the consumer end when retailers place phones on sale/discount. For ex. Big Box retailers like Best Buy and Amazon can now continue to sell phones cheaper. Best Buy has Sprint's S7 Edge variant at 299.99, $50 less than directly from Sprint. Is that enough to justify the remaining overage amounts? Nope. Lol. But at least there is options for savvy shoppers, or for grandpa plans like DnB925Art situation.

posted on 28 Feb 2016, 08:32 1

10. thunder18 (Posts: 140; Member since: 06 Aug 2009)

Finally someone gets it! The key is to never buy your phone from the carrier. I typically end up waiting for a sale price on recently released phones so my LG G4 was 1 dollar from Amazon back in May 2015. Even if I had to pay the ETF, I would still be out les than any of these lease deals and that's to say nothing of buying the phone outright.

For simgle users it may make more sense, but for me with 4 phones on my plan, my total outlay works out to a hair over $60 a line on the ED1500 plan from Sprint.

posted on 26 Feb 2016, 18:09 1

6. promise7 (Posts: 891; Member since: 03 Jul 2013)

That's how they make their money back for selling the phone to you for a lower upfront cost on two year contracts otherwise they would just be selling you a flagship phone for $199. Verizon is the same, I forgot how much the line fee was when they had subsidies, was something like $20-$25/month on top of your data plan for selling you a phone for $199.

posted on 29 Feb 2016, 02:56

12. canner (Posts: 68; Member since: 29 Feb 2016)

Thats how contracts work. it always has been. Always do the math. your better off going for payment plans. then you pay full retail nothing more nothing less.

posted on 29 Feb 2016, 02:57

13. canner (Posts: 68; Member since: 29 Feb 2016)

Except for service of course.

posted on 26 Feb 2016, 16:56 2

3. lp_522 (Posts: 46; Member since: 31 May 2011)

Hey, alright. Sprint might've been reading my bitching about the loss of their subsidy plans on PA. Lol.

posted on 27 Feb 2016, 00:50

7. Inotamira (Posts: 173; Member since: 06 Feb 2016)

And laughed at you for thinking it actually saves you something!

posted on 29 Feb 2016, 12:23

14. jsobotka (Posts: 53; Member since: 21 Aug 2009)

I've done the math so many times, and the subsidy plan is always the best deal for me. Granted, I'm still on the Everything Data plan, so that might make the difference.

If you do the math and subsidizing cost you more, you may be getting screwed on your current plan.

The Best Buy deal for the S7 is really good. Not to mention the fact that I was going to spend $99 anyway for a Gear VR. So, $199 for a Galaxy S7, a Gear VR, a 64GB EVO+ UHS-1 microSD card, and ~$50 in VR games... hell of a deal.

posted on 27 Feb 2016, 13:09

8. syed_itsa (Posts: 31; Member since: 05 Feb 2015)

If we dont be greedy technology goes down in a year. Now Note 4 brand new with 1 year warranty by Samsung is about 329 dollars. No contracts etc and those are unlocked. Why people do pay for phone more than its manufecturing price. Companies were making money when they had 2 years contracts they are making money today too. Their coverage in most area is very low.

posted on 27 Feb 2016, 13:27

9. Bernoulli (Posts: 4318; Member since: 01 Sep 2012)

It's always good to have options, thank you sprint.

posted on 29 Feb 2016, 02:52

11. canner (Posts: 68; Member since: 29 Feb 2016)

my personal feelings for contracts aside this is a good move. there is a huge consumer base of people who don't give a damn about what they pay a month and just want that new phone (co-iPhone-ugh) for as little down as possible. This really opens the door to trap people and milk them for all they're worth! If only they would do the Math and they would realize what they're really signing up for

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