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Now no carrier offers a contract plan. Instead, when you buy that fancy new phone, regardless of carrier, you'll end up paying on some sort of monthly installment plan. Subsidies for smartphones are now gone, as all four major wireless operators in the US have done away with two-year contract plans.
Verizon Finally Kills Subsidized Phone Deals The era of the $199 smartphone is finally over. Verizon, the last holdout among the major wireless carriers, said on Monday that it had eliminated the option of subsidized phones with a TW- year contract for all its retail customers.
While Verizon did away with two-year contracts for new customers back in August 2015, existing customers were able to re-purchase two-year contracts when upgrading their smartphones. That option is no longer available, and customers will be transitioned to device payment plans as their contracts expire.
You can upgrade to a new phone with Verizon once you have paid off 50% of its retail price under your device repayment program and return it in good working condition. Verizon's device installment plans last for 24 months, so most people will have reached the 50% payoff mark after 1 year.
'Buying a smartphone outright can be cheaper in the long run, compared to locking yourself into a two-year contract. ' But buying a phone outright isn't for everyone. For example, if you like to sport the latest handset and aren't fussed by higher monthly plan costs, then a mobile plan might suit you just fine.
The change is set to apply to all phones sold by AT&T, including iPhones, Android handsets, Windows Phone devices, and even bare bones “feature” phones. While customers who agree to a new two-year subsidized contract can obtain an iPhone 6s starting at $199, the full price of the handset is actually $649.
AT&T will officially stop offering contracts on January 8. AT&T (T) customers currently under contract will be grandfathered in -- until they want to buy a new phone from the company. Business customers will still be able to sign up for contracts.
'Buying a smartphone outright can be cheaper in the long run, compared to locking yourself into a two-year contract. ' But buying a phone outright isn't for everyone. For example, if you like to sport the latest handset and aren't fussed by higher monthly plan costs, then a mobile plan might suit you just fine.
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