AT&T To End Two-Year Contracts

AT&T To End Two-Year Contracts
AT&T Sign Logo Mike Mozart / Flickr CC BY 2.0

AT&T will stop offering two-year contracts starting January 8.


The nation’s largest wireless carrier, which until now was the only one offering two-year contracts to subsidize new smartphone purchases, will be ending its standard contract plans. According to this plan, customers were charged a price for the cost of a phone in addition to a wireless service of two years, USA Today reports. However, business customers having a qualified wireless service agreement will not be applicable to the change.

“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,” AT&T spokesman Fletcher Cook said. “Starting January 8, AT&T Next will be the primary way to get a new smartphone at AT&T.”

According to Re/Code, AT&T does not offer two-year contracts through third parties. Instead, the carrier only allows them through its stores and the website.

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Two-year contracts are slowly being discontinued. In an announcement in August, Verizon and Sprint said they were opting out of selling contracts. T-Mobile stopped offering contract more than two years ago.

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