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Sprint to Cease Offering Contracts By Year's End

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Aug 17, 2015, 3:33 PM by Eric M. Zeman

Sprint will soon stop asking customers to sign two-year contracts when purchasing new phones, says the Wall Street Journal. The change coincides with moves made by its competitors, including T-Mobile and Verizon Wireless. Sprint CEO Marcelo Claure told the Journal that it will move to a phone-leasing/financing model, such as the one it debuted earlier today for the iPhone, before January. Claure suggested that its parent company, SoftBank, will help it offset some of the costs associated with leasing — rather than selling — handsets to customers. SoftBank last week spoke of plans to create a subsidiary that might help finance some of Sprint's handset-related costs. The wireless industry has been transitioning from the subsidized, contract model to leasing and/or financing programs since T-Mobile announced its first Uncarrier move in 2013. AT&T is the lone national carrier still offering yearly contracts in addition to financing plans.

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