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AT&T confirms it’s dropping two-year contracts for consumers
The change is set to come into effect from January 8, 2016, meaning we’ll hear more in-store in the near future. Starting January 8, you’ll only be able to buy a phone by paying for its full cost up front or with monthly installments through an AT&T Next plan.
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Just to be perfectly clear, this move applies to all of AT&T’s phones. While the impending changes will apparently be applicable to all phones (including feature phones) bought in individual capacity (IRU account), contracts will still be available for corporate (CRU) accounts, as per the leaked memo.
If you’re one of the few that still purchases brand new smartphones with a two-year contract, America’s second largest wireless carrier is about to strip that option away from you.
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While losing the option of getting subsidized handsets may seem like a loss, this move actually benefits consumers, since it frees you up to get a new device whenever you want. Verizon had already followed T-Mobile’s lead and done away with their two-year service contracts for new customers by introducing a new plan structure earlier this year. Sprint also planned to ditch the contract model by the end of 2015. They simply won’t have the option to extend their agreements any longer, and the same applies to employees on EMO accounts. 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.