AT&T to Discontinue 2-Year Phone Contracts From January 8

[Maura]

MacRumors reports that Engadget has posted a leaked internal AT&T training document that shows that it is doing away with 2-year phone contracts as part of a move that it refers to in the document as “a pricing simplification effort.”

This means that from January 8 2016 new and exisiting AT&T customers will only have two payment options when they want to buy a smartphone such as an iPhone: either buy the phone for the full price upfront, or take out an AT&T Next payment plan.

MacRumors says that while there is no information as yet as to how this will affect corporate accounts and other devices such as tablets and wearables, it is thought that some corporate users will still be able to buy their devices on 2-year contracts.

By taking this step, AT&T is following Verizon and T-Mobile’s lead, with the latter launching its Un-carrier payment plans back in 2013, separating device costs from plan costs, and the former doing something similar in August 2015.

Since the story first broke, AT&T has now confirmed the news in a statement issued to Re/code:

“With $0 down for well-qualified customers, the ability to upgrade early and down-payment options available with even lower monthly instalments, our customers are overwhelmingly choosing AT&T Next. Starting January 8, AT&T Next will be the primary way to get a new smartphone at AT&T.”

Sources: AT&T to Stop Offering Two-Year Phone Contracts Starting January 8

AT&T Confirms It Is Doing Away With Two-Year Phone Pricing for Consumers