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AT&T is doing divided with a two-year agreement once and for all


(Andrew Harrer/Bloomberg)

Starting Jan. 8, you’ll no longer be means to get a cellphone from ATT on a two-year contract. You won’t even be means to sensitively ask for one in ATT sell stores anymore.

This has dual vital ramifications for ATT customers. First, this means device subsidies are becoming strictly obsolete. That bonus on a phone we used to get for being sealed into ATT for dual years? Gone. Instead, you’ll compensate for your cellphone possibly undisguised in full, or on a monthly installment devise underneath a company’s ATT Next program.

[Thinking of shopping a new iPhone? Read this first.]

Second, because ATT will no longer replenish your old contract, you’ll enjoy some-more freedom. So as prolonged as you’ve entirely paid off your device, you’ll be means to switch carriers flattering much when we want. If we no longer owe any device payments and confirm to hang with ATT, you’ll expected advantage from reduce monthly payments since your phone will have been taken caring of.

“Our business are overwhelmingly selecting ATT Next,” a association pronounced in a statement. “Starting Jan 8, ATT Next will be a primary approach to get a new smartphone during ATT. This does not request to business business underneath a competent wireless use agreement.”

The change, that was first disclosed in an inner ATT memo obtained by Engadget, comes after a year of scattered changes in a wireless industry. T-Mobile was a initial to pierce divided from two-year contracts, followed by ATT when it primarily denounced a Next ascent program. (The understanding allows business to switch to a new handset as mostly as each year.) Verizon was a subsequent to follow suit. And Sprint lets business franchise their phones for a monthly payment.

It also reflects a flourishing trend by a attention to adopt new business models, withdrawal others behind. Today, wireless carriers make most of their income offered information and services that run atop those mobile Internet connections — not content messages, voice use or handsets. (Though partial of a reason companies are permitting some-more visit upgrades is since a traded-in phones are expected to fetch a satisfactory cost on a used handset market.) That’s staid to accelerate as Americans devour some-more information on lucrative, metered plans.

[A elementary beam to shopping cellphone use in 2015]

One intensity downside of a finish of contracts is that consumers will have to confront the full cost of their devices, now that a loyal cost isn’t being vaporous by a phone subsidy. The doubt is, will some-more people select to compensate for their phones in full from a get-go, or will they opt for installment skeleton that let them ascent each year? If a former, people might finish adult gripping their inclination for longer. If a latter, we’ll see larger turnover in handsets.

Given a gait changes in record and how severely we value novelty, I’d put my income on a latter.

Article source: http://www.washingtonpost.com/news/the-switch/wp/2015/12/31/att-is-doing-away-with-the-two-year-contract-once-and-for-all/

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