this post was submitted on 18 Nov 2023
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Assuming you are on a plan where there is just a monthly hardware surcharge, you likely pay 20% of the price of the phone up front, and about 200% of the price of the phone by the time they recommend you change hardware. Even a crappy phone is almost a thousand dollars now, and they can still be worth hundreds used after a few years, there are many places older used phones can be sent and sold.
Most of those types of plans have about a 50-75 dollar a month hardware charge built into the plan. A "bring your own device" plan is like 20-30 dollars a month. 50 dollars a month for 2 years is 1200 dollars. 75 dollars a month for 3 years is 2700 dollars. Pretty easy to fit the price of a phone in there somewhere.
Also their favorite customer, is the one that has a hardware fee in their plan, but then buys a new phone themselves from a third party. For people that plan to buy their own phone, make sure you are on a "bring your own device" plan. Save yourself hundreds of dollars a year. I know that part doesn't pertain to the person I am replying to, but I have talked to alot of people that brought their own device and were still on a 70-115$ monthly phone plan.
The phone company won't tell you about the other options, you have to ask, and some of the bigger companies don't even offer a plan without a built-in hardware surcharge. Then you better hope you have another option in your area. Most of the littler phone companies with dumb names aren't big enough to even offer hardware, so if you were ever curious why their plans can be 1/3rd the price, they are byod plans.
Is this your recent experience with American wireless carriers? I have experience with phone companies and this is not how the big ones work. They did work like this years ago but it's been a while since they have. The big ones right now have a plan per line and additional charges based on add-ons and device payments. So it'll be something like $80 phone plan + $20 device payment (for 3 years) + $8 insurance. Once the payment plan is over the plan and addon's typically remain the same price. If you bring your own phone as a NEW customer the big carriers give you a discount up front or distributed through a monthly credit, but the plan is the same plan. Once the credit runs out it's the same price as everyone else's plan.
Example bills:
New customer with no promotional offers: $25 iPhone 15 (I don't know the actual price for this) $80 unlimited plan $8 insurance $113 total
New customer with trade in promotion: $25 iPhone 15 -$25 iPhone 15 $80 unlimited plan $8 insurance $88 total (I'm not a Nazi I'm just pretty sure this is the price of the cheapest insurance option)
Existing customer who buys a phone from Craigslist: $80 unlimited plan $8 insurance $88 total
New customer that brings their own Craigslist device: $-5 credit for bringing own phone (probably applied for 24-36 months) $80 unlimited plan $8 insurance $83 total
Ah fair, last time I used a big carrier was when I found out that they were no longer offering any byod or pay as you go options, so I had to go with one of the little guys if I wanted those options. Which I very much do, as I always buy exactly the phone I want, rather than choosing from a small selection locally.
I haven't really looked back since, but only hear about it from friends and family that it was still the case. But I would certainly understand if it turns out they don't do their research and are just placating me.
Edit: and also technically Canada, but probably not much difference. Though as far as I can tell none of the big companies have a 30 dollar plan around here. So not sure how much of it goes to hardware if the price gap is still just as big as it was when I switched. Not sure what else the price difference would be about.