Earlier today, AT&T unveiled their new early upgrade plan called Next, but T-Mobile CES John Legere called it “smoke and mirrors” and a “poor copycat.” AT&T’s new Next plan allows customers to pay for devices in 20 monthly installments and also allows an upgrade each year. The only problem is that monthly payments aren’t discounted for those that opt for this route. “They’re charging you twice on the same phone and calling that a good deal,” said T-Mobile executive Andrew Sherrard.
The problem has always been that those that want to pay the full price (off contract) for a phone gets penalized by paying the same monthly price as those that pay the subsidized on contract price. AT&T does nothing to rectify this situation, but T-Mobile does. Now if you are willing to pay the entire upfront cost, AT&T does offer the GoPhone prepaid service, which gives you unlimited calls and texts as well as 2GB of data for $60 per month. That is a pretty good deal, but again, you will have to pay the entire purchase price of the phone. Why AT&T didn’t add the 20 month installment plan to this GoPhone monthly rate, I will never know.
Verizon will announce their Edge plan soon as well, but how will that stack up?