It appears the AT&T is going to properly ditch its two-year contracts starting early next year, an internal document sent to the carrier’s employees this morning has been leaked online and it reveals that new and existing customers will only be able to purchase new phones by either paying for them upfront or opting for an installment plan starting January 8th, 2016.
Engadget points out that this change is going to apply to all AT&T devices, including flip phones and feature phones, those devices will also need to be bought upfront or on an installment plan. It’s doing away with subsidies for good.
There’s no information as yet on how this change affects some other devices that the carrier sells, devices like the Gear S2 and tablets, which are attached with two-year contracts.
AT&T’s internal document mentions the reason for this change, this is being done in the interest of aligning its offerings with “customer and industry trends,” T-Mobile did claim the early mover advantage here since it gave up on two-year contracts long before AT&T decided to follow suit.
Verizon has also done the same so many would think that it’s about time that AT&T is going down the same route, so if it all goes according to the plan mentioned in the leaked internal document, then starting January 8th AT&T customers will either have to pay upfront for their device or get one on the AT&T Next installment plans.