BEwARE the edge program. Let's do the math.
EDGE = LOOSE UNLIMITED DATA.
Ok, fine, go the dummy line route, get the phone on edge, swap the new phone to your unlimited line and put a basic phone on the dummy line. Let's see how cost effective that is....
EDGE PLAN - $600 phone
600 / 24 months = $25 per month + $2 carrying charge = $27 per month
Tax (figure 9% for an example) $54 + 1st month payment $25 = $81 due before you leave the store.
Total price paid at the end of 24 months for Device + Tax + Carry charge = $702 - You own the phone outright.
IF You use a dummy line, that'll cost an EXTRA $240 (24 months at $10 per month on the older Nationwide plan). So $702 + $240 = $942
NOW - THE WHAT IF I WANT TO TRADE IN SCENARIO:
I won't go into time the phone is kept, just basing this on needing half of the bill paid off.
$600 / 2 = $300 + $54 in tax + $12 if trading in at the 6 month mark = $366
Now, if you "Edge Up" you must Give That Phone Back, and start all over. Replace it with another $600 phone in 6 months and you've paid $732 and start over again with NOequity in a device at all.
Device Replacement Plan Purchase:
$600 Phone + Tax (9% for example) $54 + $24 carry charge (12 Months) = $678 and I OWN the phone outright. Keep it, sell it, trade it...whatever I want to do with it.
12 payments of $50 + $2 carrying charge = $52 per month
Tax $54 + 1st Month $52 = $106 due before I leave the store.
I just don't see how the EDGE program benefits anyone.
First, let's give you one important distinction between me and the examples above. In my case, there was an existing dummy phone that was already costing me $10 per month. All I did was do the Edge on that phone, then move it to my line. So for me, there is no added $10 per month, or $120 per year. But in my case, there was also a phone trade in and an activation fee waiver. Let's forget the tax in each example...it's a wash either way.
So, let's go over the math above in my scenario...and let's not forget two very important parts. First if you trade in a working phone on an upgrade (they MAY also do this for new activations but I don't know and so I am assuming no) - no matter how old it is (I traded a Droid Pro), they give you $100. That phone wasn't worth $10. So I figure I did OK there. Then there was the activation fee waiver - another $35. So before I've even signed the agreement I'm up $135.
Then, the cost... for my Droid MAXX, it's $20.83 per month (see my bill below)
This takes into consideration the $100 up front for the trade, otherwise it would have been $25 as in the examples above). I pay this $20.83 per month for 12 months, at which time I can turn the phone in and pay nothing, then start all over again with a brand new phone. After that first 12 months, I've paid $249.96...but wait...I got the activation fee waiver (remember?), so in all actuality I only paid $214.96 for the 12 months, or $17.92 per month!
$20.83 * 12 = $249.96 - $35 = 214.96 / 12 = $17.92 per month net (and that doesn't even take into consideration time value of money or opportunity of interest cost on the difference between that and the $635 I'd have to pay up front). And I still have Unlimited Data on my phone number, and no new contract on that number...so I can walk at 12 months, give the phone back and go elsewhere if I choose.
If I bought that phone outright for $600 out of pocket (plus $35 activation), how much could I expect to get for it if I sold it one year later (given a new series of models of phones would be out then)? Well, could I expect $485? Let's say I could (yeah, right...). If so, then I am back at square one again - same place I'd be if I turned the phone in on my Edge plan. In this example the purchase outright would "appear" to be a better deal at $150 net total.
Now the major distinction here is that in the first example, I walked out of the Verizon Phone Center store without even taking my wallet out of my pocket. I paid absolutely NOTHING and was handed a brand new Droid MAXX. In fact, there was also the trade in and waiver of the activation fee - another $135 in credits to me, so really, I walked out some $135 in the black - PLUS a BRAND NEW PHONE. The other guy who paid $600 up front also paid $35 for an activation, so he's in the hole $635 before he leaves the place. He may be up by $64.96 after 12 months ($635 - $485 = $150 versus my $214.96, or a difference of $64.96...$5.41 per month for the 12 months), but I only had to meet those monthly payments and got to keep my $635 in my pocket while leaving with the same phone and the same unlimited data.
I agree that the $10 per month for adding a line is an additional cost, and since that wouldn't be an upgrade, there (probably) isn't either the $100 credit *(can anyone confirm or deny this?)... I understand they ARE waiving the $35 activation fee for new Edge palns, but in that case, the cost for the phone is $420.00 and you give it back with no equity. That isn't a great deal if you don't need the second line or don't already have a dummy line (think phone for the kids, for instance).
