AT&T Confirms Plans to Ditch Contracts
AT&T says beginning January 8, it will rely on AT&T Next as the primary avenue through which customers will purchase handsets. AT&T has historically sold handsets with two-year contracts attached to the purchase, but in recent years added the AT&T Next installment plan option. Customers have always been able to pay full price for handsets up front. AT&T Next plans allow people to break up the device payment over 18 to 30 months to defray the cost. "With $0 down for well-qualified customers, the ability to upgrade early and down payment options available with even lower monthly installments, our customers are overwhelmingly choosing AT&T Next," said AT&T in an email to Phonescoop. "Starting January 8, AT&T Next will be the primary way to get a new smartphone at AT&T. This does not apply to business customers under a qualified wireless service agreement." Contracts will no longer be available from AT&T. Customers can buy smartphones via AT&T Next or pay full price. Verizon and T-Mobile have already done away with contracts. The news was first reported by Engadget.
more info at Engadget »
Sprint Confirms No More Contracts Starting Today
Sprint said beginning January 8 new customers will not be able to buy handsets at subsidized prices by signing a contract. The company is following the industry trend of moving toward installment-based options for financing handset costs.
Verizon Kills 2-Year Plans, Bumps Activation Fee to $30
Verizon Wireless no longer offers two-year contracts with device subsidies, and has raised the cost of activating new devices by $10. The changes, confirmed by Fierce Wireless, were put into effect January 5.
Sprint Brings Back Two-Year Contracts - With A Catch
Sprint has reversed its position on contracts and starting today began offering them again as an option to customers purchasing new equipment. Sprint customers can pay full price for phones, lease them, break payments up over time, or sign a two-year contract to purchase phones at subsidized prices.
AT&T CEO Believes Phone Subsidies Will Eventually Vanish
Phone subsidies and two-year contracts are on their way out the door, according to Ralph de la Vega, AT&T's CEO of mobile and business solutions. "I think it is one of those options that is going to go away slowly," said de la Vega to Recode, "not because we insist on it but because customers will choose it less often." AT&T has made changes recently to limit the availability of subsidies and contracts.
This is a plan to screw over customers
You and I rarely agree. But we certainly agree this time. I've hated the cellular market ever since it started moving aw...
John Legere will get a thrill out of this