AT&T killing off two-year contracts January 8th.
Posted on 12/31/2015 11:29:02 AM PST by Swordmaker
Just like the Emperor wiping away the last vestiges of the Republic, AT&T is doing away with its remaining two-year contract options for cell phones. The company has been making a push away from two-year contracts and subsidized device prices for smartphones, and come 2016 that'll apply to the rest of its phone lineup and text messaging devices, too.
The big change is supposed to go into effect on January 8, according to internal documents obtained by Engadget. Along with the end of two-year lock-in contracts, customers won't have an option for subsidized phone prices and will instead have to pay full price up front, or spread out their device payments as installments.
AT&T's internal FAQ says existing customers with a current two-year contract won't be able to upgrade to a new two-year agreement after January 8, which means the next pretty much every customer wants a new mobile phone they'll be moving to the AT&T Next plan.
Killing off two-year plans may make phone purchases seem more expensive up front, but can actually reduce the overall price customers pay to get their new smartphone. Two-year plans took into account the price of the phone, which was typically paid off after about 16 or so months. Cell services providers didn't lower monthly bills after subscribers paid off their phones, which meant they were making monthly payments when they didn't need to.
Spreading out the full price of a new phone as installment payments works out better because subscribers are essentially getting an interest-free loan. Once they pay off the full phone's cost, their monthly bill goes down.
AT&T hasn't officially announced the contract policy change, but it's a safe bet we'll see that in the next few days. If, for some reason, you really want a two-year phone contract from AT&T, hop to it. You have only a few days before that option is gone forever.
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This will make BYOP plans even more popular.
“Reduce the overall price..” Only if the cost of my plan is reduced. Is that really going to happen? I seriously doubt it. The only reason we’ve stuck with AT&T was the nice phone we get every two years.
According to the AT&T rep I talked to the rate plan price will be reduced for those who are out of contract and who are on AT&Ts mobile share plans, but maybe not for those on legacy plans - he didn't know about that
Interesting choice of words considering the AT&T logo is the Deathstar.
I’ve had ATT for about 15 years. Off contract for most of that time except 2 years ago to get a good buy on some S4s.
Except for this last instance, we stay off contract & just buy our phones from 3rd party vendors. The most economical way to do that is by staying one or two generations behind on the phone model. Big deal.
“Reduce the overall price..†Only if the cost of my plan is reduced. Is that really going to happen? I seriously doubt it. The only reason we’ve stuck with AT&T was the nice phone we get every two years.”
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This already happened in our area when I accidentally killed my iPhone 5. I was skeptical but it did actually lower our monthly rate by about $10. The wife’s phone will have to be pried out of her hand before she’ll ever change but it’s going to have to happen sooner or later.
So all phones will be unlocked now?
I have no idea why people sign phone service contracts when you can bring your own phone to prepaid phone service providers like Tracfone and StraightTalk.
What does this mean for those who have been grandfathered in on unlimited data plans?
I just cut my cell phone costs 4 weeks ago.
I bought a $200 unlocked windows phone then activated it on my Verizon account. I now pay about $35 for everything and I have no contracts to worry about.
After 3 weeks of the Windows phone, I think I like it better than the iPhone or the Android, plus for another $90 I can get a module that lets me use it as a PC complete with ports for keyboard, mouse and monitor. I wonder why I didn’t do this years ago.
because it’s the spotty service. Here in L.A. it’s like the wild west of phones, no contract phones are the norm. Works great in the city but if you are driving to Vegas, i dont want to risk it.
Apple will get kicked in the ass by this with stock.
With no subsidies their stock price will take a hit on slower sales for those having to pay full price on phones.
I have no idea why people sign phone service contracts when you can bring your own phone to prepaid phone service providers like Tracfone and StraightTalk.
Tracfone uses AT&T towers and system.
My cousin has the Windows phone and the desktop is WAY superior than my GF’s S6 and brother’s galaxy. Cheaper too.
But beware. The apps are extremely limited unless you just require talk n text or camera. I know someone who drives for Uber and Doordash and both companies cannot use Windows except Android and Iphone. He had to buy a cheap Droid as it’s needed for work.
Plus I don't have to be connected all the time. If I am away from the house or office, my Kindle Fire will get me connected at the nearest Starbucks or McD's and a host of other places.
You get a much better screen on a tablet than any smart phone and it doesn't suck money out of your account every month.
But there are a lot of people who don't think like this. Their smart phone is their lifeline to the world and damn the cost!
To get a new phone every two years, it costs a lot.
Sprint made similar changes over the last years or so.
Regardless of your carrier, a few basics apply:
—A brand new one year old phone design costs about 1/2 of the latest version.
I needed a new phone device. I had already redesigned my usage plan downward in cost. But now I pay for devices.
I found specs and reviews little changed from M8/E8 to M9 but the cost was 2.5 to 3 times more to have the latest HTC device.
So I am purchasing an E8 for $10 per month over 2 years.
Apple will get kicked in the ass by this with stock.
With no subsidies their stock price will take a hit on slower sales for those having to pay full price on phones.
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