When you amortize out the cost of a smartphone subsidy, it's basically a wash. You can either spend $1600 over 2 years on AT&T and get your phone for < $300, or spend $1000 over 2 years on StraightTalk and pay full retail ($750 on an iPhone 5s).
The cost savings start to add up if you hold on to your phone for longer than 2 years, but if you're the kind of person who buys a cutting edge phone every 18 months, prepaid is only an advantage if you care about being able to switch carriers on the drop of a hat.
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When you amortize out the cost of a smartphone subsidy, it's basically a wash. You can either spend $1600 over 2 years on AT&T and get your phone for < $300, or spend $1000 over 2 years on StraightTalk and pay full retail ($750 on an iPhone 5s).
The cost savings start to add up if you hold on to your phone for longer than 2 years, but if you're the kind of person who buys a cutting edge phone every 18 months, prepaid is only an advantage if you care about being able to switch carriers on the drop of a hat.