SAN FRANCISCO — AT&T, the only major U.S. carrier that still offers two-year contracts to subsidize new smartphone purchases, will soon stop offering the contracts.
Starting Jan. 8, AT&T customers will only be able to get new phones, even flip phones or so-called "dumb" phones, by paying the full price or paying in installments over time.
The new policy does not apply to business customers who have a qualified wireless service agreement, AT&T says.
"With $0 down for well-qualified customers, the ability to upgrade early and down payment options available with even lower monthly installments, our customers are overwhelmingly choosing AT&T Next," AT&T spokesman Fletcher Cook said in an emailed statement. "Starting January 8, AT&T Next will be the primary way to get a new smartphone at AT&T."