Category Archives: Uncategorized

Oddly Specific SMS Spam/Phishing Attempt

So this isn’t good – got a spam SMS at one in the morning. It’s a bad sign when the SMS is specific enough that it uses your name, your wife’s name and its sent to your phone number only. The action to take was a link hidden behind bit.ly URL shortening. It said “there is a new request from {wife’s name} 5 mins ago trying to connect right now” from a number 706-752-xxxx.

I’m trying to think who would have all those pieces of information (my name, my phone number, wife’s full name) and how they could be compromised. Was it a company like Amazon or some other online retailer? Could it be my employer or health care provider? Financial?

In some ways its kind of scary to think how many people have access to this information. I know better than to click on these kind of links, but it is incredibly annoying to sit and wait for the other shoe to drop (the company involved announcing they’ve been hacked) and then work on remediating whatever needs to be addressed. In the meantime, maybe I need to change my passwords again for my email and online shopping websites.

Leaving AT&T – for either Verizon or T-Mobile

So I’ve decided that after 17 years, I’ve had it with AT&T and their now slower-than-Sprint LTE speeds in Las Vegas. So when the iPhone 6s comes out this fall, I’m jumping ship. So who should I switch to? Verizon is the gold standard for cellular networks, but it also has the golden price tag. But, with T-Mobile’s fastest data speeds and John Legere’s promises that they’ll have coverage nearly equal to Verizon by the end of 2015, they’ve become a contender. Like all things, it comes down to money. AT&T has decided that they’re going to increase their dividend by 4c/year per share, while cutting CapEx (how much they spend on capital expenditures, from new towers and equipment to spectrum acquisitions).

On top of the price for service and a single line for T-Mobile (or adding a second line to my fiancee’s Verizon plan), there is also the cost of upgrading to a new phone every year. Previously with AT&T, I was able to use other family member’s upgrades. But that wont be happening in either case.

Figuring out which plan is cheapest for me is way more difficult than it should be. I’ve got at least four scenarios: with Verizon, either traditional subsidy with paying to upgrade the phone every 12 months (paying for a device in full every other year), their Edge program which now requires 75% of the device to be paid off before I can trade it in for a new one; T-Mobile Jump/installment plan or purchasing the device outright. Purchasing the device outright on Verizon is a horrible deal – they still charge you the full $40/mo (which includes a roughly $15-25/mo subsidy that you aren’t using) even though you bought your phone.

T-Mobile

Going with T-Mobile’s Jump plan, its $27.08/mo for the device and $10 for the mandatory Jump insurance ($175 deductible). Already we’re up to $37.08/mo. You also have to pay $99 upfront for the 64GB device, as well as the sales tax on the full amount ($60), so we’re up to $160 in up-front costs and $37.08 per month. With the $60mo data plan, the total annual cost is $1,324.96. With the Jump plan I get to trade my phone in for a new one (plus $160) every 12 months.

Buying the device outright, the base price of the 64GB iPhone is $750 plus tax, about $810 in my area. I upgrade my phone every year, so that’s 12 months of usage and depreciation. If I can sell my year-old phone for about $4001, that leaves me on the hook for at least $410. To make things more equal between the Jump plan and this option, lets add in AppleCare+ on the purchased iPhone, $99 to cover the phone against accidental damage ($79 deductible). With the $60mo data plan, the total annual cost comes to $1,229, or $95.96 less than the Jump plan, plus a much lower deductible in case something were to go wrong.

Verizon

Verizon’s subsidy plan means paying $323 up front for the 64GB device every other year (on subsidy) and $810 ($750 + tax) up front every other year (not upgrade eligible), but being able to sell the phone every year for around $400. Purchasing AppleCare+ would be an extra $99 per year. This works out to an average of $166.50 per year for the hardware. The monthly line access would be $40, and the marginal cost over my fiancee’s data plan is $30, so the total cost runs about $1,105.50 per year (higher in some years, lower in others).

Verizon’s Edge plan is a worse deal. While you don’t pay anything up front other than tax ($60), the monthly device payment is $38.40 (phone payment and insurance) and the monthly line access is $15/mo (on 10GB+ plans) and the marginal cost over my fiancee’s data plan is $30. The total cost so far is $1,060.80. But in order to upgrade, you have to trade in the phone and 75% of the device cost has to be paid to Verizon. After 12 months I’ll only have 50% paid off, so I have to cough up another $187.50 to trade in my phone and get the new one, bringing the total annual cost to $1,248.30, $142.80 more than the subsidized plan.

Summary

The benefits of going with Verizon here are obvious – being on a multi-line plan is cheaper than two individual line plans. The Edge program is a bad deal, but not by staggering margins. My fiancee might stay on the Edge program since her Android phones only make it about 18 months before becoming very slow and annoying, which fits the current Edge rules very well. As long as she can manage to not damage her phone too badly.

The biggest variable is the resale value of the iPhone after 12 months. If its only worth $300, then the Jump/Edge plans start to look much more attractive because the carrier is taking the resale hit, not the consumer. I think its OK as long as I stick with Apple devices since they seem to have higher resale values than Android devices.

Barring any substantial improvement from AT&T (not likely since they are cutting Capex), I’ll likely be leaving for Verizon when the iPhone 6s comes out. I’ll have to pay AT&T an ETF but I’m OK with that.


  1. right now, Gazelle is low-balling me at $345, so I figure 10 more months of use plus factoring in their low-ball price is around $350-400