AT&T Mobility followed rival Verizon Wireless in altering its device upgrade program, announcing this weekend that customers will now have to wait 24 months in order to receive a new device with a full subsidy.
The carrier noted on its consumer blog post that the move “aligns device upgrade eligibility with our standard two-year wireless agreement” and will apply to customers whose contracts expire in March 2014 or beyond. AT&T Mobility previously allowed customers to receive a full discount on a new device with a new two year contract after 20 months of service on an existing contract.
AT&T Mobility will continue to offer a partial subsidy on devices after a customer passes six months of service on a contract if they agree to extend to a new two year contract. The move also comes just a day before Apple was set to host its annual developers conference where many expect the device maker to unveil an updated iPhone product. AT&T Mobility continues to be the carrier most reliant on Apple’s iPhone product line for driving smartphone sales and upgrades owing to its position as the original home of Apple’s smartphone product.
Verizon Wireless announced a similar program in April when it extended the full subsidy timeframe from the previous 21 months to the full 24 month term of the contract. At that time, Verizon Wireless also that some devices will be eligible for its device payment plan, which allows customers to roll the price of the device into monthly installments.
Wireless carriers often allow contract customers to receive a discount on a new handset if they agree to extend the length of their contract. This has allowed carriers to lock up valuable contract customers for an extended time while also catering to the rapidly changing device landscape.
Bored? Why not follow me on Twitter?
