If you buy a new phone straight up that is correct. BUT lets say you get the 5S on contract for 199. Your plan will also go up 25/month for 2 years which is 600 plus the 199 so you now just paid $799 for a new phone. They are not up front about this but if you read between the lines carefully yea its not hidden.....right.
we were just at at&t the other day to activate a smart phone and switch to the 2 smart phones with 10gb for 130.00 a month plus fee`s .
now heres how it was told to me .
we can keep our 130.00 a month plan with 10gb forever so long as we dont upgrade our phones .this plan does not allow "contracts" so under this plan you cannot upgrade a phone and pay 199.00 with a 2 year contract because this plan does not allow contracts .
what it does allow is for you to keep paying the 130.00 a month and if you want a new phone they will charge you an extra 25.00 per month per phone for up to 24 months and then you own it . this is to say that you bought a 600 dollar phone . a 800 dollar phone would be more obviously .
long story short we can buy phones on the used market and have them activated for free and keep our 130.00 a month plan .if we choose to upgrade thats 2 phones at 25 per phone per month which brings our bill to over 180.00 a month .which i do not see us doing .
honestly ,all these plans need to come down in price .just how much are people willing to pay to talk on the phone . i am not a teen i dont live on my phone .
copied from their website
Step 1: Choose any one of our latest smartphones. You only pay taxes up front and there's no down payment or activation fee.
Step 2: A low monthly installment plan is added to your bill.
Step 3: Any time after 12 or 18 monthly installments, you may upgrade to a new AT&T Next smartphone! As long as your current smartphone is in good and working condition, you are eligible to upgrade to a brand new one. Or, you can choose to keep your current smartphone, and after 20 monthly installments (AT&T Next 12) or 24 monthly installments (AT&T Next 18), your smartphone is paid for, and no more installments are required.