The term “contract” appears to be becoming a dirty word for carriers, at least when it comes to services. Reports indicate that come June 1, AT&T Mobility will begin transitioning away from standard two-year service contracts in favor of AT&T Next, which allows customers to upgrade their phones every year.
The “Next” service allows customers to trade in their phones after 12, 18 or 24 months to avoid paying money down.
While this is not technically a service contract, AT&T Mobility said an installment agreement that requires the smartphone be paid off in 20, 24 or 30 months must be signed. A Wireless Customer Agreement or qualified small business agreement for voice and data is still required. If you cancel the service, you still have to pay the balance on the device.
This does not mean that customers will not be allowed to sign a two-year contract, but rather that it will not be directly presented as an option. It also means possibly waiting a few days to get the device. Local dealers will still offer the contracts through a program called Direct Fulfillment, which means once the order is placed, AT&T Mobility will deliver the device in the next few days.
It will still be possible to sign up for a two-year contract at company-owned retail locations, through customer service and on the company’s website att.com.
To reach upgrade status on AT&T Next, the remaining installments must be paid in one lump sum.
For example, if you have AT&T Next 12, which requires 20 installment payments, you must pay the balance for the remaining eight months before you get the upgrade. If you want to keep your device after your installment agreement is met, you must continue paying for the service.
