From CNET: Starting January 8, the nation's second-largest wireless carrier is calling it quits on the standard contract plan, which charged customers a set price for the cost of a phone and two years of wireless service.
In its place will be Next, a program that requires customers to rent their smartphones by way of a monthly fee. After a minimum number of payments, customers trade in the phone for a new one. Or they can pay off the phone in 18 months to 24 months. Only business customers will be able to choose the old-style two-year plan.
The result is that the typical price tag for an entry-level new phone, like $199 for the iPhone 6S, disappears. In its place is a monthly charge -- nearly $22 in the iPhone's case. In addition, customers also pay for the cost of voice and data wireless service.
"With $0 down for well-qualified customers, the ability to upgrade early, and down payment options available with even lower monthly installments, our customers are overwhelmingly choosing AT&T Next," said a spokesman for the Dallas-based company. Earlier this year, AT&T said more than 30 percent of its users were on the Next program.
View: Article @ Source Site
