T-Mobile appears to have started a revolution in the country’s wireless industry. It has been a couple of years since Magenta decided to do away with conventional two-year service contracts and things have been working out pretty nicely for it since then. Verizon recently announced that it is also abandoning the two-year contract, now it’s Sprint’s turn. CEO Marcelo Claure has said in an interview today that Sprint is going to do away with conventional two-year service contracts by the end of this year.
Sprint will essentially move to the same model as T-Mobile. Claure confirmed that instead of relying on two-year contracts Sprint will start selling smartphones at full price through a leasing business model.
It has already dipped its toe in the water today with the announcement of iPhone Forever, a new leasing program for Apple’s flagship that lets Sprint customers upgrade to a new model without having to pay more since their monthly lease rate is locked in.
With T-Mobile already leading the no-contract revolution and Verizon joining in on the fun as well, Sprint appears to have made the timely decision to follow suit so as to not be left behind. AT&T is now the only major carrier in the United States that hasn’t talked about plans to give up contracts but with three of the four major carriers going one-way, perhaps it might be forced to respond in some way.
Filed in . Read more about AT&T, Sprint, T-Mobile and Verizon. Source: wsj