AT&T To End Two-Year Contracts

Looking at the memo, which Engadget received a tip, It seems AT&T isn't just doing away with two-year contracts for those who want to ditch them; they're completely cutting them out of their sales model. On January 8, 2016, AT&T will stop offering contracts with its smartphones, the operator confirmed to PhoneScoop.

Instead of signing a contract, AT&T customers buying new smartphones will have to sign up for an "AT&T Next" device payment plan, in which they pay off the cost of their phone over the course of time.

It's unknown if AT&T's decision to end two-year contracts extends to other devices besides phones, such as tablets and smartwatches. With the launch of the iPhone 6S in September, Apple unveiled its iPhone upgrade program, which allows customers to pay monthly installments for their device and upgrade to the latest iPhone on a yearly basis.

Sprint nonetheless presents contract plans, although they are not emphasised they usually might disappear any day. Of course, you'd have to pay off the phone first, which would amount to something roughly similar to the early cancellation fee you would have paid if you were still bound by a two-year contract. But so far the service option is still available to customers, according to Fierce Wireless. The $ 25 low cost applies for greater knowledge plans - often ones you share with family members.

It would be AT&T's discretion to decide which customers will be able to get a phone replacement while their term is still on at $0 down payment.

However, the new policy will not be applicable for business customers with a qualified wireless service agreement.

US carriers have increasingly moved away from subsidized handsets and contracts for postpaid users since T-Mobile (NYSE:TMUS) dumped the model in early 2015. This all started in 2013, when T-Mobile ended its two-year deals.

"Our customers are overwhelmingly choosing AT&T Next", the company said in a statement.

The move marks another nail in the coffin for what was once the norm of the USA wireless industry.

Are any of you now in a contract with your carrier?

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