AT & T, one of the major US carriers that still continue offering the two year contracts on subsidizing new Smartphone purchase is all set to ditch this offer very soon starting from January 8, 2016. AT & T plans to implement a ‘pricing simplification effort’ that will draw an end to the two year contract and device subsidize. According to a document shared by Engadget, all the new and existing customers of AT & T will be able to purchase a new Smartphone at full price along with the AT&T Next payment plan going ahead.
However, this new policy is not applicable for all those business customers having a qualified wireless service agreement.
According to a spokesperson Fletcher Cook from AT& T, with $0 down for the well qualified customers, the ability to early upgrade and down payment options available with lower monthly installment, most of their customers choosing the AT&T Next plan overwhelmingly. He also stated in the emailed statement that starting from January 8, AT&T Next will be the primary way to own a new Smartphone from AT&T.
T-Mobile is the first major carrier that ditched this two year contracts two years ago in 2013 and the whole wireless industry was shaken up by this decision. However, Verizone and Sprint too followed the idea this year and now it is AT&T that is following the same path. Verizone started this policy this year in August but their existing customers can still renew the contracts whereas AT&T is bit strict in implementing the new rules. Because any existing customers will not be given any chance to continue the contract once this is over. But certain corporate customers will only be able to continue this contract.
AT&T did not confirm anything about if this new rule is applicable for all the phones sold by them including Smartphone and the basic devices. Also how the non-Smartphone devices such as tablets and wearable will be handled by AT&T will be disclosed by an official announcement from AT&T.