AT&T has been around for quite some time, and many of us have used their devices and some other services they provide. The company recently announced that it will not be offering contracts that are two years in length as from January 8. This is done with the customers’ best interests in mind as the company stated that it is doing this in order to simplify plans for customers. Calling this step the ‘Price Simplification Effort’, the giant tech company stated that it is going to be having an AT&T Next and no-commitments option that will be available for anyone who purchases a new Smartphone.
In an internal memo that was sent to all employees of AT&T, the company said that both new and existing customers who are after getting one of their smartphones will pay an upfront full payment, but if they do not plan to pay in full, the company gives them the option to pay in installments. This will help to increase its use, as some may not see it as much burden to pay in bits. Considering that AT&T batteries and devices are well built, this offer is sure to help them build an increased user base.
The two-year contract isn’t allowed on individual customers, but reports showed that AT&T may still be allowing large corporate customers to still have access to the two-year contracts; this may be due to the fact that these customers buy more of AT&T devices. The new condition isn’t just applicable to new customers, even older users of AT&T devices loss access to the two-year contract.
Many customers who wanted to change their Smartphone found it quite easy to change because the two-year contract enabled them comfortably pay for the devices over a long period of time. Any customer who wished to get the iPhone 6S range of Smartphones could budget a monthly installment of $22 which will also include the cost of their voice plan and data plan, making it quite easy to call and browse without feeling the strains of buying a device.
The AT&T Next plan has had over 30 percent of AT&T entire customer base enrolled, these customers will also benefit from a plan to pay upfront for the phone’s cost after which all data and voice bills are paid on a monthly basis. The company stated that for someone to enjoy this benefit also, he has to get enrolled in the AT&T Next plan.
T-Mobile and Verizon are the first companies to shut their doors on the two-year contracts; Sprint has given indications that it will also end the two-year contract option. Earlier last year, T-Mobile actually became the first US carrier to stop the two-year contracts, but at the time when T-Mobile was stopping the contracts, AT&T decided to stop the contracts on only third party retailers.
We are yet to see if the move by these major carriers to stop two-year contracts will either affect them or be an advantage to them. This move could have a small impact on the rate at which Smartphones are being bought and it could cause a downslide in the number of Smartphones they sell, we may have to wait for some time to see the outcome of the move. But whatever the case may be, it is important to note that people tend to change their Smartphones less often if they have to pay for their new phones upfront.