By introducing two types of new plan, AT&T is going bid farewell to its two-year contract plan, the foundation of phone plans for past so many years, from January 8. As per the new scheme, you can pay the full price up front or pay the amount in installments.
The nation’s second-largest wireless carrier will do away with the standard contract plan in which customers were charged a set price for the cost of a phone and two years of wireless service. Next, a program in which customers could rent out their smartphones by paying monthly installments will come into effect.
Second option is to pay off the phone bill in 18 months to 24 months. The two years contract will remain active only for business customers. If a person chooses monthly installment plan then it means he would be required to pay small amounts. Customers would also be required to pay for the cost of voice and data wireless service.
A spokesman for the Dallas-based company said, “With $0 down for well-qualified customers, the ability to upgrade early, and down payment options available with even lower monthly installments, our customers are overwhelmingly choosing AT&T Next”. In the starting months of the year, AT&T said that more than 30% of its users were having AT&T Next.
The change will indeed bring significant changes in the way a person pays for phone service. For past so many decades, phone companies have obscured the cost of phones by asking for a subsidized fee for the device. But the change first introduced by competitors like T-Mobile has forced bigger companies also to follow the trend.
Now, majority of wireless companies have moved to monthly installment plans by ditching contracts and subsidies. Verizon started adopting using new plans in August and Apple started upgrading program in September.