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Related: About this forumAT&T Killing Off Two-year Phone Contracts Jan 8
AT&T Killing Off Two-year Phone Contracts Jan 8
Jeff Gamet
@jgamet
+Jeff Gamet
Dec 31st, 2015 9:40 AM EST | News
Just like the Emperor wiping away the last vestiges of the Republic, AT&T is doing away with its remaining two-year contract options for cell phones. The company has been making a push away from two-year contracts and subsidized device prices for smartphones, and come 2016 that'll apply to the rest of its phone lineup and text messaging devices, too.
The big change is supposed to go into effect on January 8, according to internal documents obtained by Engadget. Along with the end of two-year lock-in contracts, customers won't have an option for subsidized phone prices and will instead have to pay full price up front, or spread out their device payments as installments.
AT&T's internal FAQ says existing customers with a current two-year contract won't be able to upgrade to a new two-year agreement after January 8, which means the next pretty much every customer wants a new mobile phone they'll be moving to the AT&T Next plan.
Killing off two-year plans may make phone purchases seem more expensive up front, but can actually reduce the overall price customers pay to get their new smartphone. Two-year plans took into account the price of the phone, which was typically paid off after about 16 or so months. Cell services providers didn't lower monthly bills after subscribers paid off their phones, which meant they were making monthly payments when they didn't need to.
Jeff Gamet
@jgamet
+Jeff Gamet
Dec 31st, 2015 9:40 AM EST | News
Just like the Emperor wiping away the last vestiges of the Republic, AT&T is doing away with its remaining two-year contract options for cell phones. The company has been making a push away from two-year contracts and subsidized device prices for smartphones, and come 2016 that'll apply to the rest of its phone lineup and text messaging devices, too.
The big change is supposed to go into effect on January 8, according to internal documents obtained by Engadget. Along with the end of two-year lock-in contracts, customers won't have an option for subsidized phone prices and will instead have to pay full price up front, or spread out their device payments as installments.
AT&T's internal FAQ says existing customers with a current two-year contract won't be able to upgrade to a new two-year agreement after January 8, which means the next pretty much every customer wants a new mobile phone they'll be moving to the AT&T Next plan.
Killing off two-year plans may make phone purchases seem more expensive up front, but can actually reduce the overall price customers pay to get their new smartphone. Two-year plans took into account the price of the phone, which was typically paid off after about 16 or so months. Cell services providers didn't lower monthly bills after subscribers paid off their phones, which meant they were making monthly payments when they didn't need to.
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AT&T Killing Off Two-year Phone Contracts Jan 8 (Original Post)
mahatmakanejeeves
Dec 2015
OP
They acquired Cricket a company without contracts and not a lot of 'free' phones but
Thinkingabout
Dec 2015
#3
Buzz Clik
(38,437 posts)1. Verizon as well....
yeoman6987
(14,449 posts)4. Really? I hope so
Mine renewed in 2014 and up in December 2016. I may not leave them but feel I should always have the option to if I wanted too.
hollysmom
(5,946 posts)2. I will believe a price reduction when I see it.
Thinkingabout
(30,058 posts)3. They acquired Cricket a company without contracts and not a lot of 'free' phones but
cheaper on service. Change in cell phone service is coming.
pbmus
(12,422 posts)5. Yeah it's changing from up your ass to in your ear
Fuddnik
(8,846 posts)6. I tried Cricket for a month last summer.
I had more dropped calls the first week with them, than I'd had in 4 years with T-Mobile.
That, and the nuisance of having to dial the area code for ever local call.