Android and Me

T-Mobile JUMP! – breaking down the numbers

1 year ago 30

JUMP!, the latest T-mobile un-carrier move revealed this week, allows current T-Mobile customers to get up to two new devices in a 12 month period without hidden fees. For an additional $10 a month, T-Mobile customers can add JUMP! service to their line. While the service is mainly targeted towards those who want new devices, JUMP! also includes full insurance coverage, so you can upgrade to a new device if your current one if lost, stolen or accidentally dropped into the toilet.

We’ve broken down the numbers, so you can see what it’ll cost if you upgrade to the latest and greatest device every 6 or 12 months. In the scenarios below, we’re looking at month 13, so that those on the 6 month upgrade schedule would be on their third device while those on the 12 month upgrade schedule would be on their second.

At first glance, the T-Mobile JUMP! upgrade program seems like an incredible deal. You can purchase a new device whenever you want, you get insurance and it costs a whole lot less. But things aren’t that simple. While those who do not pay the $10 monthly JUMP! fee have to come up with quite a bit of extra cash to get new devices, they can recuperate a substantial amount by selling the devices they no longer use. T-Mobile allows costumers to keep phones if the balance is paid off. While it’s impossible to know how much a used device is worth after 6 months, we can assume the phone will be worth at least 50 percent of its original value.

  • 6 month upgrade with JUMP!: $659.97/year 
  • 6 month upgrade without JUMP!: $1259.97/year - $580 from selling two devices = $679.97
  • 12 month upgrade with JUMP!: $559.98/year 
  • 12 month upgrade without JUMP!: $679.98/year - $290 from selling one device = $389.98

While the 6 month upgrade numbers show the JUMP! option coming in $20 cheaper than the standard option, which requires you to sell your old device, keep in mind that the numbers are based on the two devices retaining 50 percent of their value over 6 months. In the real world, the 14-month-old used Samsung Galaxy S III is still selling for $330, 55 percent of its original value.

There are only two reasons to take advantage of T-Mobile’s new JUMP! upgrade plan:

  1. You like the security of having an insurance plan for your device.
  2. You always buy the best phone, you never sell your old phone, and you plan to upgrade your phone every 6-12 months.

It’s that simple. Technically, there’s no value in the service, but it may be appealing to those who buy new phones and simply throw their old device in a desk drawer and forget about it. Keep in mind, the service completely loses value after month 15 if you don’t upgrade to a new device. Yes, you still have peace of mind that you’re phone is insured, but we all know that insurance is the biggest scam in the wireless industry.

Breaking down the numbers:

HTC One cost of ownership

  • 6 months payment plan: $99.99 down payment, $120 monthly payment ($20/mo x 6 months) = $219.99 ($360 remaining balance)
  • 6 months payment plan + JUMP: $99.99 down payment, $60 monthly JUMP payment ($10/mo x 6 months), $120 monthly payment ($20/mo x 6 months) = $279.99 ($360 remaining balance)
  • 12 months payment plan: $99.99 down payment, $240 monthly payment ($20/mo x 12 months) = $339.99 ($240 remaining balance)
  • 12 months payment plan + JUMP: $99.99 down payment, $120 monthly JUMP payment ($10/mo x 12 months), $240 monthly payment ($20/mo x 12 months), $99.99 phone upgrade = $459.99 ($240 remaining balance)

HTC One cost of ownership + new phone upgrade

  • 6 months payment plan: $99.99 down payment, $120 monthly payment ($20/mo x 6 months), $99.99 phone upgrade = $319.98 ($360 remaining balance)
  • 6 months payment plan + JUMP: $99.99 down payment, $60 monthly JUMP payment ($10/mo x 6 months), $120 monthly payment ($20/mo x 6 months), $99.99 phone upgrade = $379.98 ($360 remaining balance)
  • 12 months payment plan: $99.99 down payment, $240 monthly payment ($20/mo x 12 months), $99.99 phone upgrade = $439.98 ($240 remaining balance)
  • 12 months payment plan + JUMP: $99.99 down payment, $120 monthly JUMP payment ($10/mo x 12 months), $240 monthly payment ($20/mo x 12 months), $99.99 phone upgrade = $559.98 ($240 remaining balance)