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You are here: MacNN Forums > News > Mac News > AT&T allegedly completely exterminating two-year contracts in new year

AT&T allegedly completely exterminating two-year contracts in new year
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Dec 30, 2015, 02:01 PM
 
Wireless carrier AT&T appears to be completely retiring two-year contract subsidized phone plans. According to leaked employee documents, effective January 8, 2016 the only purchase plans that will remain are full-price purchases, or installment plans through the AT&T Next program. This casts a pallor over existing unlimited data-plan holdouts, as any transition to AT&T Next invalidates the older contract with the unlimited data, leaving only full-price purchases of devices as an option.

The elimination of two-year contracts not only applies to smartphones, but also flip phones, and so-called "quick messaging devices." AT&T claims in the leaked employee training documents that the move is being made to align "service offerings with customer and industry trends."

The document, originally sourced by Engadget, reinforces moves that the company started earlier in the year, eliminating two-year contracts at retailers. Unclear is the fate of two-year contracts for tablets, which have been promoted heavily over the holiday season.

     
BuffyzDead
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Dec 30, 2015, 02:48 PM
 
Not Clear

Regardless of how you purchase an iPhone, AT&T Next or Full Price, (or keep using your existing iPhone)
what does that have ti do with the AT&T "mobile plan" you choose to purchase?
     
Mike Wuerthele
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Dec 30, 2015, 03:08 PM
 
Perfectly clear.

AT&T Next is still a service contract. With a new contract, the old (Grandfathered) unlimited internet is not available. If you bring your own phone, you can use it with the grandfathered unlimited plan.
     
pottymouth
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Dec 30, 2015, 05:07 PM
 
Plus, I just got the letter about the unlimited data plan $5 increase yesterday*. This is just making my math more complicated, but I still don't think there's any reason for me to switch to limited plans. I've got an iPhone 6, so hopefully I won't have to worry about buying a new phone and having to ditch my unlimited plans any time soon. Tho, I rarely use my iPad on cellular data, so it's getting pretty hard to justify spending $35/mo for that :/

*For those that are curious, there's an interesting bit in the letter that says unlimited plan users still under contract at the time of the rate increase will be able to get out of their contracts free of charge within 60 days of the rate increase.
     
climacs
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Dec 30, 2015, 05:15 PM
 
you won't be able to get out of paying the ETF for your subsidized phone, though. I checked this with AT&T. The phrasing is very confusing, as I was under the impression I was not under contract for my service plan.
     
BuffyzDead
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Dec 30, 2015, 07:45 PM
 
Cool. I have an iPhone 6s so I am good for another 20 months. Afterwards, I'll source my new iPhone elsewhere, and keep my grandfathered plan.

BTW,
Consider the T-Mobile plan for you cellular iPad. I buy the $10.00 for three months or 5GB's, whatever comes first. ...for those rare times, when I actually need cellular on my iPad ...it's a no brainer and the AT&T model works on the T-Mobile network
     
justinpe
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Dec 31, 2015, 12:25 PM
 
I am due for a full upgrade in April, so I went ahead and bought a 6s with my partial discount yesterday. Got $200 off by signing a new two-year contract. I figured I would get a discount while I could instead of waiting until April when I most likely won't have the subsidized pricing as an option to upgrade.
     
   
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