This content is rated TV-MA, and is for viewers 18 years or older. Are you of age?
Sorry, you are not old enough to view this content.
CNET Update: AT&T's Next plan doesn't add up
About Video Comments (0 ) Transcript

CNET Update: AT&T's Next plan doesn't add up

2:51 /

Customers pay more for a phone with AT&T's no-contract option, abandoned Yahoo IDs are up for grabs, and Foursquare finds a new way to push advertisements.

AT&T has a new upgrade plan that you might want to avoid. I'm Bridget Carey and this is your CNET Update. AT&T is giving customers the option to ditch their two-year contract and pay about $30 more every month for the opportunity to upgrade to a new phone once a year. This option is called Next, but it makes no financial sense. Your monthly service plan has not changed at all. So, let's say, you currently pay about $100 a month for service instead of just paying $200 upfront for that shiny new iPhone and being done with it. You now are paying double that, almost $400 over the course of a year for that same iPhone and that's just so you could trade it in for a new model in 12 months and that phone better be in good condition because if it's cracked, you gotta pay more to trade it in. The only person this benefits is someone who pays a large termination fee to break their contract every year just to get a new phone. If you do the math, the difference between paying a termination fee for your contract and the Next plan is about $55. If you don't get a new phone every year with Next, you're losing money. The Next plan basically takes the full price of the phone and splits it up over 20 months. So, if you keep your phone for the whole 20 months, you just shelled out the full $650 for a new phone when you could have gotten it for $200 just with sticking with a contract. So, why is AT&T even offering this? Well, I guess they thought they needed to do something to compete with T-Mobile which has a better version of this concept. At T-Mobile, they don't have contracts. You just put a down payment on a phone, like about $100, and you pay a monthly fee to pay off the rest of the phone over time, but your monthly service charges are lowered to balance it out. That's what AT&T is missing and T-Mobile just launched the Jump plan. So, for another $10 a month, you could upgrade a phone twice a year if you want something new or if the phone is damaged. So, it's like an insurance plan. We expect Verizon to also jump in and offer some option for people to upgrade early, but we'll have to wait and see if Verizon can make it worthwhile. It's time to claim a new Yahoo username. Yahoo has been doing some housecleaning and deactivated old abandoned IDs that have not been used in over a year. Now, Yahoo is opening up those names to other people on a first-come, first-served basis. Just go to to request your username and Foursquare is beginning to roll out advertisements that show up after you check into a place. So, for example, when mom checks into the neighborhood park or pool, she might see a Toys"R"Us ad to encourage her to pick up some Frisbees and pool noodles. That's your tech news update. You can find more details at From our studios in New York, I'm Bridget Carey.
  • This is the interactive sidebar!

    Click any icon for more information as they appear--don't worry, we'll pause the video and wait for you to come back.

  • Links Polls Galleries
  • Video Review

New releases

The Superhero Workout will whip...
4:34 August 22, 2014
This week on Crave we battle an alien invasion and burn some calories at the same time. Also, we e​njoy a...
Play video
Hack attack: Apps can spy on other...
2:54 August 22, 2014
Researchers reveal a flaw in Android, iOS and Windows that lets hackers peer into Gmail, Chase and other apps....
Play video
The 404 Show 1,541: Look away from...
37:36 August 22, 2014
Steve "Sphere" Guttenberg is back on the show today for a discussion about why he thinks technology is making...
Play video
2014 Toyota Highlander Hybrid
9:18 August 22, 2014
Is the 2014 Toyota Highlander Hybrid just a big Prius or much more? Brian Cooley drives the sleek new SUV...
Play video
Toughest smartphones
2:56 August 22, 2014
Need a phone that can take a beating? Here are five smartphones that can take anything you can throw at t...
Play video
Logitech's Bemo an oddball video...
1:32 August 22, 2014
One-button video capture matched with a nice viewing and editing app adds up to a fun little camcorder if...
Play video
How the iPhone, Android, and Facebook...
39:39 August 22, 2014
We celebrate 400 episodes with a look at the iPhone, Android, Facebook and the technology that's changed your...
Play video
Back-to-school tech discounts
1:02 August 22, 2014
School supplies no longer mean some pencils and erasers. Expensive gadgets like laptops and tablets have stepped...
Play video

Video discussion

Conversation powered by Livefyre