Do you really get a free phone with AT&T?
You might have heard messages from AT&T stating that you can obtain a free phone if you switch to their network or buy a new phone. Yet is the “free” phone free? Now, it is time to take a closer look at AT&T and phone deals with some essential information.
The Hidden Facts About the Free Phone Offers from AT&T
Whenever AT&T presents a phone that comes “free” with the internet service plan, it is essential to know that there are some conditions attached to the offer. Primarily, you have to activate a new line with a 2-year wireless plan or AT&T Next device installment plan. Mobile carriers may not charge an initial fee for the device, but consumers sign up for a long-term obligation to purchase cell service every month.
Under a 2-year service contract, AT&T pays some of the price of the phone so you have to pay less than the full price of the phone. But that discount is negotiated into your monthly service charges. Therefore, in essence, it is the subscriber who pays off that particular phone throughout the length of the contract through slightly inflated monthly charges.
Renewal Options for the Existing Clients
Once in a while, there is an upgrade sale at AT&T Internet where consumers can get a new phone at a cheaper price or even for free if they agree to sign a new 2-year contract. Some may limit eligibility to those willing to trade in their old devices. However, do remember that by opting to buy the latter model, you are paying for 2 more years of service costs. Scrapping early means losing more money to pay an early termination fee.
BOGO Deals
Another of AT&T's phone offers is the BOGO where you get two phones at a time at half the price. The catch here of course is that you have to get another new line with its very own monthly payments. So yes you get one “free” device but also are agreeing to take on another multi-year service contract and a new bill. Be careful with the sum totality of cost over that contract period.
“Free” with Trade-in Offers
Occasionally, AT&T offers customers the option to upgrade their mobile phones by trading in a compatible previous model and applying the trade-in value towards the cost of the new phone. It is important to note that if a phone has enough trade-in value to cover the cost of the new device in its entirety then AT&T deems it as being ‘free’. But you’re just getting a full trade-in credit that makes that new phone no money out of pocket. Once again, you will be expected to sign up for the 2-year installment plan or contract for service.
In societies and the real-world business environment, the common saying that in the end, nothing is free holds so much truth.
Although AT&T may offer free phones, the catch is usually hidden in the small print such as contractual obligations, fees for a new line, monthly installments, or low trade-in value for your old phone. Every new AT&T phone will either cost you a little more per month or sign you up for multiple years of service. This makes it possible for AT&T to recover the expenses incurred on those devices in the long run.
Smart Shoppers Do the Math
So, the bottom line is that when you are offered any cell phone deal with a low or no upfront charge you should always work out the long run charges. Total the monthly service cost over the life of the contract, including all installment options for device payments. But wait, there are always one-time upgrades or activation charges thrown in the bargain. This will give you the real total price of the phone over time.
That means an AT&T ‘freephone’ may still be cheaper than buying the phone unlocked for full retail. But it is not free in the conventional, literal sense of the word. As the famous proverb says there is no free lunch in this world. The same can be said of cell phone service plans, where one provider may offer a deal that another provider may not offer at the same price. Consumers have to look beyond the adage here and now when reading ads, to grasp what they are agreeing to for the long haul before signing on the dotted line.
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