The Android bug game
I’ve taken a hiatus of sorts from writing this blog. And I thought I would have some profound, captivating topic to start back with, if ever. But this is the way the cookie crumbled.
Well, I let my phone get stolen in the most hipster way possible: I forgot and left it on my bike outside the library while I was checking out books. Womp womp…
But all is well because I get to save some money. See, I had been floating along luxuriously with an elaborate but expensive AT&T plan at $60/month (an outrageous 5 GB of data per month, free texting till the cows come home, etc.). My contract ended in March, and my intention had always been to switch to Republic Wireless as soon as my AT&T contract ended. But here I was at the end of July, still luxuriating.
Maybe on some level I was following my natural instinct to put off making a large purchase if possible. But this is one of those rare cases in which a large purchase would actually allow me to save money.
Here’s how I figure: the traditional major carrier model was to sell you a subsidized smart phone for about $100 as long as you agree to a two-year contract with a monthly service fee of about $60. Presumably some of the comped cost of the phone is actually hidden in the $60/month fee. And then if you lose/break your phone within the two years, you’d be on the hook to buy a full price phone (about $600 for a Samsung Galaxy S6) without “upgrade.” (Put this way, I am starting to see why someone would steal a relatively functional and well cared-for Samsung Galaxy S3. I assume thieves do not take care of their things.)
On the flip side, you could try to hold out with your phone beyond the minimum 24 months to forestall the next $100 phone purchase. But the spread out-cost of $4.16/month if you keep your phone for 2 years or $2.77/month if you keep it for, say, 3 years is really negligible compared to the $60/month ongoing plan fee. No matter what, you are paying at least $60/month over time, and potentially much more if you lose a phone and need to buy another.
Republic Wireless has two modest phone models which use VoIP when within WiFi range. You must buy one up front, at full price: $130, or $300, respectively. Then they have a variety of plans from $0/month (WiFi use only) to $40/month (unlimited everything I think). They assure you that with the VoIP capability and automatic WiFi switching, you will only ever need the $10/month plan max. But I signed up for $25/month just in case.
Republic’s monthly fees are so low that it does not matter even if you spring for the $300 phone. When you average out the $300 phone and a $25/month plan over two years, it comes to about $37/month vs. AT&T’s approximately $64/month from above. If you can keep a Republic phone running for 10 months, your Republic plan will pay off (relative to my $60/month AT&T plan anyway). Imagine that: maintaining an AT&T plan costs the equivalent of buying a brand new, full price Motorola smart phone every 10 months at Republic. Now that would be indulgence!
So this turn of events helped me start saving money earlier. I might have gone on with the old phone another 6 months maybe, but that would have actually cost me $162 (difference in averaged monthly costs * 6 months) for the luxury of not getting cheaper sooner.
Thanks clown! I will go enjoy my cheaper, state of the art phone now. You can have my cracked, sweat-soaked AT&T shackle.
UPDATE: I checked out the phones on AT&T’s site out of curiosity, and it looks like now they force customers to finance the entire cost of a new phone, over a required 30-month contract. Did my eyes deceive me? That arrangement is totally bogus.
By comparison, my new Republic Moto X has solved a number of my life problems since I took it out of the box 16 hours ago. And I was asleep for 6 of them.