May 27, 2018

AT&T Says Adios to 2-Year Contracts

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AT&T Says Adios to 2-Year Contracts

AT&T, the country’s second largest wireless carrier, is reportedly ending two-year phone contracts, effective on Jan. 8.

What this means: If you want a new phone, you’ll either have to buy it outright or make payments on it, under AT&T’s new plan.

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Customers will be able to get a new smartphone by enrolling in AT&T Next, the company’s early upgrade and installment program, or by paying full price on the smartphone. The change will impact all AT&T phones, not just smartphones. Select business customers who have corporate accounts will not be affected by the changes.

Earlier this year, third-party AT&T retailers had stopped offering two-year contracts. That meant shoppers had to go into an AT&T-owned store or shop online to sign up for or renew a service agreement.

It’s still unclear whether these changes will impact tablets or wearables, which both currently use two-year data agreements. More details are expected to be released during CES 2016, the consumer electronics trade show, which kicks off later this week in Las Vegas.

Source: “AT&T Is Kissing Two-Year Contracts Goodbye in the New Year,” TechSpot (Dec. 30, 2015)