AT&T to Ditch Two-Yr Contracts on Jan. eight

AT&T, one of many final carriers to supply two-yr telephone contracts, is eliminating them.

Beginning Jan. eight, the corporate will cease providing two-yr plans and as an alternative supply "Subsequent" plans, an AT&T spokesperson confirmed to NBC Information.

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The corporate is the final holdout among the many main carriers. Dash, T-Cellular and Verizon ditched two-yr contracts earlier this yr.

What does that imply for shoppers? As an alternative of the service subsidizing the price of a telephone, customers should purchase the telephone outright or pay for it in installments. For many who select the latter, they’ve a wide selection of cost choices.

The Subsequent 18 plan, for instance, lets clients repay the newest iPhone in 24 funds of $27.09 a month — however they will improve to a brand new telephone after solely 18 funds.

Within the previous sponsored plans, there was no approach to repay your telephone. Should you did not get a brand new telephone after two years, you have been simply paying extra money for nothing. Beneath the brand new plans, when you’re achieved paying the installments, your month-to-month invoice goes down.

Associated: No Two-Yr Contract? Learn how to Maintain Getting New iPhones

"With $zero down for nicely-certified clients, the power to improve early and down cost choices obtainable with even decrease month-to-month installments, our clients are overwhelmingly selecting AT&T Subsequent," an organization spokesperson advised NBC Information.

"Beginning January eight, AT&T Subsequent would be the main option to get a brand new smartphone at AT&T. This doesn’t apply to enterprise clients underneath a professional wi-fi service settlement."