AT&T is kissing two-year contracts goodbye in the New Year

The Next 18 plan, for example, lets customers pay off the latest iPhone in 24 payments of $27.09 a month – but they can upgrade to a new phone after only 18 payments.

Beginning January 8th, no new or existing customer would be able to buy smartphones or multimedia phones on contracts. Rather, it was T-Mobile that move away from it. When AT&T unveiled its Next upgrade program, it immediately announced that the two-year contract would be gone. If you no longer owe any device payments and decide to stick with AT&T, you’ll likely benefit from lower monthly payments because your phone will have been taken care of.

Subsidies are over at AT&T.

Are any of you now in a contract with your carrier? They can pay the full price up-front or pay installments over time under its “AT&T Next” plan. You may be thinking of renewing and getting a new cell phone yet again.

AT&T had been relatively slow to move away from contracts, but it stopped offering contracts for smartphones at some national retailer and local dealer partners in June.

How this affects Samsung Gear 2 and tablets among other wearables remain unclear, because these are sold on 2-year contracts and company promotion is still ongoing on them.

A leaked memo sent to AT&T employees this morning reveals that the company is finally putting and end to two-year contracts for all customers. They can switch from AT&T to another company if they are not satisfied by AT&T’s services. Macquarie restated a “buy” rating and set a $39.00 price target on shares of AT&T in a report on Tuesday, September 1st. After a minimum number of payments, customers trade in the phone for a new one. The wireless carrier will soon phase out offers under which consumers can purchase, or upgrade to, a new smartphone under a subsidized agreement, according to internal company memos obtained by Engadget. Business customers will still be able to sign up for contracts.