AT&T is ditching two-year contracts for good in January


If, for some reason, you really want a two-year phone contract from AT&T, hop to it. You have only a few days before that option is gone forever. If you didn't get a new phone after two years, you were just paying more money for nothing. In many cases the monthly bill was over 50% less than a comparative contract plan from AT&T or Verizon.

Notably, AT&T approach towards contract implementable is rather stringent as it won't allow existing customers to renew their contracts once they expire.

The carrier's decision to ditch the two-year contracts follows other top carriers in the cellular business, including T-Mobile, Verizon, and Sprint.

For those of you who are used to signing 2-year contracts with AT&T Inc. This also applies to AT&T employees with a plan with the company. Although you pay simply $ 200 on the contract price, the phone firm passes alongside the remaining $ 450 in greater month-to-month charges for voice, textual content and knowledge.

This change is not applicable to AT&T business customers under a qualified wireless agreement, added AT&T.

First reported by Engadget yesterday, the change was confirmed today by an AT&T spokesperson who told us, "Starting January 8, AT&T Next will be the primary way to get a new smartphone at AT&T".

If you're upset about the change, blame your fellow subscribers - people have complained for years about being locked into contracts.

Customers still on their 2 year contract will be able to continue on the plan until their next upgrade.

With Next 18, as soon as the loan for the mobile phone is taken care of, the amount you pay for the plan only becomes considerably low. Earlier this year, AT&T said more than 30 percent of its users were on the Next program.

Hence AT&T customers cannot purchase an entry-level new smartphone outright.


One potential downside of the end of contracts is that consumers will have to confront the full cost of their devices, now that the true price isn't being obscured by a phone subsidy. Customers will now have to either buy new phones at full price or purchase them via an installment plan.