Cell Phone Plans: AT&T’s No-Contract Announcement

    December 6, 2013
    Mike Tuttle
    Comments are off for this post.

“Mobile Share Value,” the new no-service-contract cell phone plan from AT&T, was unveiled this morning and promises to give customers ease in data sharing while saving money and enjoying the nation’s fastest and most reliable 4G LTE network.

The company says that customers can save $15 a month and have the option of getting a new smartphone every year. This is different than the traditional contract which makes customers hold on to their device for two years. Next plans, which give customers the ability to swap phones after 18 months, will also be available.

However, according the Wall Street Journal, the only customers eligible are those who:

* get their smartphones with no down payment through the Next plan
* bring their own smartphone
* purchase one at full retail price
* have smartphones that are no longer under contract will be eligible for this new plan

T-Mobile (applauded by the 12th annual cell service and phone ratings report as having the most honest pricing), is currently the lowest priced carrier. AT&T and Verizon are the costliest.

“Our customers told us loud and clear that they want more value and no contract,” AT&T spokesperson, Mark Siegel, said.

Customers on a Mobile Share Value plan will be able to get shared data plus unlimited talk and text on their phones and connect up to 10 devices, including tablets and other wireless devices.

David Christopher, chief marketing officer for AT&T Mobility, said, “With our new Mobile Share Value Plans, customers don’t have to compromise. Our new no contract option lets customers add a smartphone to the nation’s fastest and most reliable 4G LTE network at a lower monthly cost. Customers want great value and a premium network – and now they can save more and get unlimited talk, text and data to share.”

The new lower rates, starting December 8, amount to a savings of approximately 10% to 15%. Put into realistic terms by Yahoo News, this means that a couple who uses 400 voice minutes, sends 200 text messages, and consumes 500MB of data with one smart phone and one voice flip phone will pay $90 a month. This is $25 down from the current two-year contract plan. T-mobile’s similar plan is $80 a month.

A family of four that uses 1,800 minutes of talk time, 7,600 text messages, and 4GB of data per month with two smart phones and two slider phones will now pay $160 a month, down $50 from $210. T-mobile’s bargain plan is $110 per month. However, Sprint’s comparable plan is $200 and Verizons is $210.

AT&T will still offer two-year contract plans as an option, although those now look like bad deals compared to the new value plans.

Although there is no contract for service with the new plans, the installment payment agreement is still a contract which must be paid off, even if a customer decides to leave AT&T.

image via: Wikimedia Commons

  • Richard Badal

    I will only stay with ATT until my obligation is complete, then I will look over other carriers to see who can offer my wife and myself the best program. Currently I a senior person is paying 170.00 plus each month and that presents a money problem. Don’t get ma wrong this is not ATT fault however, with all of the deception the last 2 years with customer service giving me wrong answers to my problems, its not worth the frustration.

  • Matt

    I’m sure there is something unsaid that will screw us in this endevor just like their move to not upgrade after 18 months and upgrade whenever we want… we just have to pay 20 bucks a month. HOW DOES THAT HELP ME? Is just another way they sugar coat their upsale.

  • Christina

    I’ve been with page plus for the last 5 years and I’m really happy. No contract unlimited talk and text with 3gb and that’s sufficient with me. When I’m home I used my wireless on my phone and when I’m at public place I used their wifi. 39.99 month. Can’t beat that for a person who is budget mind

    • Angelo

      Good Choice. I have my iPhone 4 on Pageplus and it works fine

  • Anonymous

    I pay under $20/month on Ting Mobile. There’s no contract and I can change phones whenever I want to. Beat that and maybe I’ll think about swapping.

  • daffy

    I think att sucks, I used to use them too, paying over $100 a month. Straight Talk is only $50 a month with unlimited talk , text AND DATA. thats right, unlimited data. So why on earth would i want to pay more. plus straight talk contracts wit ATT and uses their lines so I’m getting att for much less. Yes its a walmart company but so what, At least I’m not going broke for cell service

  • omar

    AT&T ? This is what we are talking about. We need them to respond, when it comes to stolen phones. lots of users are getting hurt by others being able to sell our stolen phones. HELP ! can they put an app in the phone or is it about the $. The auto industry put a chip in their car radios and guess what, no more missing radio.
    I changed my a AT&T contract to a no contract plan.

  • Sprint Sucks

    I worked for Sprint for 5 years and we ripped people off so much its not even funny. All of these company’s do. I decided once I quit that I would never own a cell phone again. The prices some people pay are ridiculous!

  • http://netontherun.com Michael Gillin

    A little late to the party AT&T. It’s a great time for the consumer. The new Moto G will change the mobile space while making a substantial amount of $ back in the consumers wallet. Take a look at this cost saving analysis.