As we get ready to say goodbye to 2014, let's pause and give thanks to the robust and raucous competition between the big four mobile carriers this year. But before we sing Auld Lang Syne and forget about the old days of much higher per-line charges, inflexible 2-year contracts and the like, Sprint would like our collective attention just one last time. The company calls it the Cut Your Bill in Half Event and believe it or not you can really do just that. As with every one of the year's big promos, however, there are a number of catches and caveats, so let's get to it.
I heard I can't get this if I have T-Mobile. Is that really true?
Even though it has largely been thanks to T-Mobile that we even have the "mobile wars," Sprint isn't especially interested in courting T-Mobile customers this time around. To get your bill shrunk down to size, you'll need to currently have service with Verizon or AT&T. Sprint is trying to make the process as simple as possible to understand for most people, but given the changing way mobile is bought and sold in the U.S., that's not easy to do. To assist you, Sprint is asking people to first upload their current bill. You'll need to download a PDF from your carrier's site and then be patient. (Alternatively, you can bring a bill into a Sprint store.)
I should point out that Sprint's system couldn't read my bill, which isn't especially complex, though it does have 8 phone numbers, one phone on Verizon's Edge plan requiring monthly installment payments on that phone, and a corporate discount. But in theory the process works for most people. Just not those with T-Mobile.
Is Sprint really going to take half off my bill; that seems hard to believe?
Yes. Once Sprint sees your bill, it determines your monthly recurring charges -- what you pay for the shared pool of data used by your phones and tablets plus the line charges for each phone you have -- and halves the total. Here's where the deal gets complicated. First, keep in mind those per-line charges typically included a hidden fee to help cover the cost of the discounted phone you're likely using. If you paid $199 for an iPhone 6 or $0.01 for a new Samsung Galaxy S5 on Black Friday, I'm talking about you. With AT&T and Verizon, each phone line starts at $40 per month, which Sprint will happily reduce to $20.
But that's not the deal it seems. The reason is that to get Sprint's offer, you need to buy a new phone using one of Sprint's installment plans. With those plans, Sprint typically only charges $15 per month if you have a family plan with 10GB of data or more included. You're actually a bit worse off taking this deal than just pretending it doesn't exist. Importantly, if you have an installment plan with Verizon or AT&T (Edge or Next), those fees won't be halved, you'll have to "close out" that portion of your deal. More on that below.
But what about the other part of your bill, the monthly data "bucket"?
Well again, Sprint's definition of half might not be yours. Let's say you are porting over a 10GB plan from AT&T, where the monthly charge is typically $100. On Sprint, there is no such plan but it's promising to match your data allowance. That's a nice deal -- especially for just $50. That said, Sprint only charges $80 for a 12GB plan normally. So a bigger plan that you had before could already be yours for $20 less.
In our example, if you brought 4 lines over and all had discounted iPhones, you'd turn a $260 bill into $130. But if you simply ignored the new promotion, Sprint would sell you that 12GB plan with four lines for $140. You'd basically be saving an extra $10 but getting a bit less data. Oh and by the way, Sprint is currently waiving the $15-per-line charge through 2015 if you choose a plan with 20GB or more. Sprint only wants $100 per month for that 20GB plan right now, no matter how many lines you have. So you might actually come out behind with the "Half Off" promotion. (I haven't tested this yet, but I presume most Sprint reps will steer you in the direction of the most optimal plan.)
I don't pay $40 per line with AT&T (or Verizon). Does that make this deal better or worse?
Better. There are some of you out there who already have transitioned away from discounted phones to AT&T Next or Verizon Edge and therefore aren't paying $40 per month for each line. Instead, you're paying $15-25 depending on how much data you use. In those cases, the half-price sale looks a lot more appealing. Take our example above and your old AT&T bill would currently be $160 instead of $260. Sprint would cut that to $80, basically reducing the line charges to nothing. And you'll get to keep your new price after 2015, too, unlike with Sprint's promotion mentioned above.
What happens to my old phone. Can I keep it in case I change my mind?
Not really. At least one phone on your account has to be handed over to Sprint once you sign up and they want all the rest within 30 days.
No matter what, though, you need brand new phones to make the jump to Sprint. Again, the situation gets complicated. If you have a discounted phone from AT&T or Verizon, Sprint will help you buy your way out of the contract with up to $350 on a prepaid Visa card. Similarly, if you have Next or Edge, the $350 can help you pay off Verizon or AT&T so that you own the phone free and clear. For some, this will be enough money; if you recently bought an iPhone 6 it won't. That will leave you spending money just to start anew with Sprint.
On top of that, Sprint's getting something valuable in your old phones. It's going to figure out what they're worth, sell them off to a refurbisher, etc. and use whatever proceeds it gets to help pay for those $350 prepaid Visa cards. You, on the other hand, will be paying a little bit each month to enjoy a new iPhone, Galaxy, et al. An iPhone 6 would run $27 monthly on Sprint's Easy Pay, which closely resembles Next and Edge. (For more on Sprint's options for phone purchasing in the new world, see: Sprint Wants To Give You A New iPhone Every Year, But Whose Deal Is Best?)
Depending on how old your phones are, you might be handing Sprint something worth hundreds of dollars. This is especially true for new iPhone customers or those with a Galaxy Note 4. Those folks, of course, are getting the inducement of the up to $350 to switch over. Sprint, though, won't give you $350 if you don't need that much to leave your carrier (the key words here are "up to"). So someone with a 2-year-old iPhone 5 will receive nothing from Sprint, but Sprint will want the phone anyway to make the deal. If you had already called Verizon and asked for a $25/month credit because you're off contract and don't have a new discounted phone, good for you. Your base bill would be lower, making the Sprint deal more valuable. If not, Sprint gets two small bonuses (1) They get to discount the monthly line charge less (2) They get an old phone worth $200 or more.
So is this a win then? Should I take the deal?
I'm less sold here than with other Sprint offers, like the 20GB-for-$100 deal while waiving the per-line charges through 2015. Those charges alone would add $720 on a 4-line plan, for example. AT&T and Verizon customers coming over to Sprint might well see their bills "cut in half" but the question is whether they couldn't achieve something similar by getting on the phone with their carrier.
Take a Verizon customer who currently has several lines where the 2-year contract is expiring. Switch those to Edge (or just keep your old phone) and the monthly charge falls from $40 to $15. Yes, if you want a new iPhone you'll pay for it every month, but the cost is essentially identical to what Sprint charges. As for the data, Verizon recently moved the 10GB plan from $100 to $80 -- so long as you ask. Someone who was paying $100 + 40 + 40 + 40 + 40 = $260 might well be poised to see their costs fall to $80 + 15 + 15 +15 = $135. That's tantalizingly close to halving your bill, and you don't have to leave Verizon to do it. And if you get new phones with Edge, you can sell off or trade in your old ones, keeping the value to yourself.
Sprint's offer, then, seems mostly for two groups of people: those trapped in contracts with one of the big carriers they want out of or those not savvy enough to understand that it isn't necessarily the deal it seems to be. The fear here is that it will mostly attract the second group. Still, some folks will save a great deal with the new offering and so if you're intrigued go to a Sprint store and talk it through with their reps. But don't forget to also visit your current carrier and see if there isn't a way to save yourself some money on your existing service. You might find that half off -- or at least something close -- is right in your own backyard without having to pick up and move to a new neighborhood.
