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Deal Guru
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Jan 30, 2006
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Vancouver

Tabs?

Always found cell provider TABs very confusing. Any simple explanation?

Is a tab financing a new phone over a period of time? A contract? Your paying full price plus ?

Thanks
7 replies
Deal Expert
Aug 2, 2004
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East Gwillimbury
Subsidies are rare. But most tabs are full price divided over 24 months with zero interest. There is no uplift, but usually entails a two year contract with the carrier.

To break the contract, just pay off the device balance.
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May 8, 2009
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Going to the Moon
Gee wrote: Subsidies are rare. But most tabs are full price divided over 24 months with zero interest. There is no uplift, but usually entails a two year contract with the carrier.

To break the contract, just pay off the device balance.
Tabs, subsidies, device balance, etc. is all the same thing.

Here's the catch. With all providers except Koodo, where retail price is $X, and you pay $Y upfront, you're putting $X-Y away on a 2 yr deal, and each month, the device balance reduces by 1/24th of that $X-Y amount.

On Koodo, it's more awesome. Say you agree to a tab 10, you're putting away $240 on a 2 yr, then three months in you buy out at $210+tax, even if the device full price is $400. On Fido, say you take a plan with tab 10 for a $400 phone (and $0 upfront), three months in your buy-out would be $350 (and $350 is a lot more than $210).

Aside Koodo, both Fido and Freedom have a tab structure where you get the BYOD plan plus a tab monthly fee which will probably not be equal to 1/24th of the device balance (they leverage "device promo's" through this...say you're taking a $400 phone, but only add $5 or $10 to the base plan).
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Gee wrote: Premium devices have an upfront cost then you divide the remaining balance over 24 months.
That's why I said $X-Y, 'Y' being the upfront cost.

If the flagship is a year old, you can often find it at $0 upfront, or simply take the phone on a more expensive rate plan.
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Aug 2, 2004
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titaniumtux wrote: That's why I said $X-Y, 'Y' being the upfront cost.

If the flagship is a year old, you can often find it at $0 upfront, or simply take the phone on a more expensive rate plan.
Once it's a year old, it's no longer the premium device. Manufacturers replace the flagship annually. Hence the $0
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Going to the Moon
Gee wrote: Once it's a year old, it's no longer the premium device. Manufacturers replace the flagship annually. Hence the $0
That's why it's "last year's flagship". Often still better than latest budget or mid-range.
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