The standard contract plans are fast becoming a thing of history, and AT&T has become the latest carrier to bid adieu to its two-year locking period. In order to buy a new phone, customers would now need to either pay the full price or in installments instead of subsidized rates.
Beginning January 8th, no new or existing customer would be able to buy smartphones or multimedia phones on contracts. While it is a good news for those who don’t want to be bounded by a contract, people will no longer be able to purchase a new phone like the Samsung Galaxy S6 for a down payment of $129.
There is no word as to whether tablets and wearables such as Samsung Gear S2 would be affected by this move. According to an Engadget report, AT&T could continue multi-year contracts for corporate accounts. The reason behind the change is AT&T’s plan to “aligning… service offerings with customer and industry trends.”
if we look at other carriers, T-Mobile and Verizon have already moved away from multi-year contract model. It is only fitting that AT&T is going to ditch the outdated strategy with the beginning of the New Year.