Wireless Carriers Offering Early Upgrade Programs: What You Should Consider

AT&T, T-Mobile, and Verizon have each announced new programs that allow their customers to upgrade their handsets well before the usual 24-month cycle. At first glade, this sounds great, but the devil is in the details.

In every instance, you will pay more for an accelerated upgrade program, but that should come as no surprise.

There are several different dimensions to each carrier’s new plan. You are buying a new phone without a subsidy. Phones are expensive (how about $550 to $700?). You might be paying the same monthly subsidized phone service fees without that carrier subsidizing your phone (!!).

You’ll need to sit down and compare what you’re currently paying against how much you’ll pay for one of the early-upgrade plans. Now decide if that additional cost is worth having a nifty, new phone when you want it versus waiting for your contract to expire.

Also consider the obligation you’re making especially when you’re in a family plan with other people. The wireless carriers are actually encouraging staggered contracts in a family plan to increase your trouble to end a contract and choose another carrier.

Personally, I’m going to stick with my standard plan. As alluring as the latest and greatest gadget is, it’s quite a financial burden for a device that will lose its luster in a matter of months. But your attitude might be very different to mine.

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