Sprint's stance on two-year contracts has been confusing for the last six months. It was back in August that the carrier was rumored to be doing away with two-year contracts, but it wasn't until last month when Sprint officially (and quietly) ended offering them to customers.
Less than two months after dropping them, Sprint is once again offering two-year contracts.
Michelle Leff Mermelstein, a Sprint spokesperson, told FierceWireless about the reinstatement:
“We listened to our customers and are giving them more choices to get their new device. Sprint is the only carrier to offer the most choices to obtain a new device — lease, installment bill, two-year contract or pay full retail price.”
If you head over to Sprint's site, you can see for yourself that two-year contracts are indeed back.
It's not expected that the other major carriers who abandoned two-year contracts will follow Sprint's decision. Sprint could be getting desperate to retain existing customers and attract new ones on a network that is considered to be far behind the competition. The other carriers are seeing solid bottom lines every quarter, allowing them to continue on this path of monthly payments to sell devices while investing in better technologies. Verizon, AT&T, and T-Mobile have each committed to exploring 5G networks. Sprint, however, has been relatively mum on creating its own 5G network, only going as far as saying it has a “strong foundation” for the future.
Source: FierceWireless
Thank God! I can’t stand these finance and lease programs. Some people like myself like to keep our bill low. This is great news
You know very little. 2 year contracts costs the customer more than payment options. Your monthly rate is higher and you keep paying a higher rate for the life of your phone.
But what if the consumer just wants to pay a little upfront and that’s it? I know plenty of people who don’t care to upgrade frequently.
For example, a 2 year contract phone would cost you $70 in monthly service for the life of the phone plus a down payment ($99-$199). On payment plans, your cost would be $50 for the service (instead of $70) plus your phone monthly payment. Once you pay off the phone, you are left with just your $50 monthly service. On 2 year contract, you continue to pay the rate that had the cost of the phone built in $70 for as long as you have the phone. Sprint is going back to 2 year pricing because many customers don’t understand the math is in their favor. 2 year contracts are worse for the customer the longer they keep a phone.
You got it backwards 2 year contracts are better. the installment plan which you signed also 24 months installment plan and you don’t get a discount phone like you with a 2 year contract
For example, a 2 year contract phone would cost you $70 in monthly service for the life of the phone plus a down payment ($99-$199). On payment plans, your cost would be $50 for the service (instead of $70) plus your phone monthly payment. Once you pay off the phone, you are left with just your $50 monthly service. On 2 year contract, you continue to pay the rate that had the cost of the phone built in $70 for as long as you have the phone. Sprint is going back to 2 year pricing because many customers don’t understand the math is in their favor.
Unless you are grandfathered in for unlimited everything, as I am, then it makes complete sense to pay between 100-350 for a phone upfront keeping your bill the same.
The rate a carrier gives you for a 2 year contract phone is higher than if you pay off the phone in payments. The low rates on commercials have a small disclaimer at the bottom saying it requires non-discounted phones. They don’t advertise the 2 year rate. I work at Sprint. Grandfathered rates like yours have always had the option to do the 2 year contract phone. This new change is for new users….and its not a good deal for them.
Maybe I’m just not following you, I JUST, got a note 4 on 2yr contract for 100.00 at bestbuy. On an upgrade of course. If you are switching to sprint. I can see that it would be higher however I did it and payed a discounted rate.? If they changed their policy I’m not aware of it.
You are fine because the Best Buy unlimited rate is a good one. Sprint has a special agreement with Best Buy for special pricing. New customers should never do 2 year phones, especially if they don’t upgrade often. I have seen customers throw tantrums in stores because they didn’t have the option for 2 year contracts, even after we laid out the math and showed then it was cheaper for them in the long run.
I have no doubt! I tried to go the cheaper route. But I use too much data a month so I just stay with the unlimited everything. I do however lease an iPhone 6plus. The note was for my wife.
All I know is my bill is lower then yours you don’t know what I pay. Not to mention I get an employee discount genius 35% off. So you can stick with your finance plan I’ll stick with what works for me. I been paying the same low bill with my grandfathered plan for years.