AT&T: Discounted Contract Phones Phased Out

Posted by Sam Churchill on

Last week AT&T introduced a new pricing plan that can save $15 a month on their service bill after a two year contract.

Basicially, AT&T has decided not to keep their $15/month fee after you pay off a discounted smartphone. Previously the company rolled that cost on top of its service fee, and kept the money after the phone was paid off.

Customers can now receive these “monthly savings” when they: Get a new smartphone for no down payment with AT&T Next, their (additional fee) upgrade option; bring their own smartphone; purchase a smartphone at full retail price; or when their smartphone is no longer under contract and they switch to the new plans.

CEO Randall Stephenson explained that AT&T was the first major wireless carrier to eliminate unlimited data plans. Now, more than 70 percent of AT&T’s customers are on plans that charge customers based on consumption.

Randy says the company’s new AT&T Next program, which offers no-money down and 0-percent financing, drives smartphone penetration in more sustainable way.

U.S. wireless carriers often “lock” smartphones to their networks as a way to encourage consumers to renew their mobile contracts. A new deal between the carriers and the FCC may assure consumers that they could get their phones “unlocked” at the end of their contract and make the process more uniform among carriers.

Posted by Sam Churchill on Wednesday, December 11th, 2013 at 2:00 pm .

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