After the contract phone has been paid for

[zannne]

Please help me understand why the monthly amount does not change even after the phone has been paid for.  I assumed that I would the agreed amount until the phone was paid off and after that, the monthly charge would drop. This has not happened.  Why?

[Cawtau · Accepted solution]

Hello Zannne,

  Welcome to the community!

  Many mobile providers use a subsidised model for their contract devices. This model is different from a tab model or the more recently available leasing model.

  With the subsidised model, the subsidy is incorporated into the plan (ie small, large, etc). On the other hand, with the tab model, the monthly plans and tabs are separate. Since the subsidy is incorporated into the plan, your plan does not automatically switch to a BYOP plan at the end of a contract. It remains your previous plan, should you wish to subsidise another device. If you did not wish to subsidise another phone, you would have to switch to a BYOP plan which is in-market at the time you decide to switch.

  You should note that the details of the in-market BYOP plans may or may not be the same as your current plan. It is not possible to keep your current plan and merely remove the subsidy.

Hope this helps 😀

Cheers