At the CES-2014, T-Mobile again shacked the wireless market with its promise to pay your early termination fees. Sprints also lured customers, be its network ambassador and get the bill as low as $25/mo under its innovative “Framily” Plan. Just few days ago, earlier to CES, AT&T also come out with a lollypop of credit up to $450, specially to poach T-Mobile customers, to switch to AT&T. Verizon was silent.
Customers now are allures with these lucrative options but it would be wise if we do some math before switch or opting a new carrier.
Let us take an idea example of a family of four person and at most if count friends or relative we can reach up to seven person in a plan. we assume that all family members are bonded with different contract plans with different carriers but for ease of calculation, we assume all persons have completed six month with present carrier
All of us are most tempted by T-Mobile’s offer and Sprint’s new “Framily” plan so we assume your family members with AT&T and Verizon may switch to T-Mobile or Sprint.
Suppose one of your family member brought iPhone5S(64GB) for subsidized price of $400 from Verizon and if he decides to switch to T-Mobile, he gets credit of $300 for the device. If he is with Verizon since last six months, then his early termination fee (ETF) would be $350 minus $10×6 months i.e it would be $290 hence he will get total of credit of $590.
Now, he need to purchase a new iPhone 5S(GB) from T-Mobile which will cost him $800 plus $10 for a SIM starter kit. T-Mobile also offer this device under “Jump” with payment of $200 as down and rest $600 in equal monthly installment of $25 for next 24 months.
At Verizon, he may be using service plan of unlimited talk & text plus 2GB for which his monthly bill is $100 but at T-Mobile, his service plan is cheaper, he will get unlimited plan of talk, text and 2.5GB data for just $60 only.
Hence on porting in to T-Mobile, he is paying upfront cost $200 plus $10 for SIM starter kit, total $210 against device credit of $290 so effectively he pays nothing but have net credit of $80. He also saves $40 on monthly plan making him happy with more data usage. Your monthly bill at T-Mobile would be $60 plus $25 for the device so your effective monthly saving is $15 only. Your saving over the next two year would be $80 plus $15/mo, total $440. ETF as levied by current carrier will be paid by T-Mobile so it makes no difference expect time to process it.
Similarly if another member is stuck with AT&T then he can save $35 for monthly service plan, a total saving of $320 in next two year.
For a family of four person, the family shareable plan cost $62.5 each member in Verizon, $57.5 in AT&T, $40 in Sprint’s Framily plan and $35 in T-Mobile, it is obvious T-Mobile is most advantageous but Sprint’s Framily plan facilitate you to bill you separately.
As compared to big boys, T-Mobile and Sprint have less coverage, T-Mobile’s covered 200 metro locations while Sprints operates in 300 markets as compared to AT&T which has now 488 markets and big brother Verizon has covered almost all areas of US, 500 markets.
So concluding here, before switch to T-Mobile or Sprint, which are offering attractive plans that may lower your bill but if you can’t get signal reception, it may ruin your daily life.