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AT&T Is Dropping 2-Year Contract System On Smartphones, What This Means to Samsung?

AT&T, the second biggest wireless carrier in the united states is doing away with the contract system. In its place, there will be the “Next” system. Starting Jan 8th, consumers will not be able to buy a smartphone under the 2-year contract system. This will only be available to the business customers.

AT&T has said in a statement that more number of the user are migrating towards the next program and continuing the 2-year contract system seemed illogical to them.

“With $0 down for well-qualified customers, the ability to upgrade early, and down payment options available with even lower monthly instalments, our customers are overwhelmingly choosing AT&T Next,” said a spokesman for the Dallas-based company. Earlier this year, AT&T said more than 30 percent of its users were on the Next program.

The contract system where the base model iPhone was available for $199 down payment along with a monthly service fee will disappear soon and in its place will be a monthly charge like $22 for an iPhone. There is no down payment here. You will have to pay the additional fee for the wireless service.

After renting the phone for a certain period, say like 12 months, you will be eligible to trade in your old phone and get a new phone for free. If you like your phone very much, you can pay off the phone by renting it for 18 or 24 months and own the phone permanently.

What this means is that owing a smartphone is now significantly easy and the down payment is gone for good. The overall price of the smartphone remains more or less but the hole that it burns in your pocket will be very less.

Premium phone is now easy to own and you can have a new phone without buying a new one after a certain period of time. this move is to counter the stagnation that has gripped the smartphone industry where selling new and expensive phones have become a pain in the back. samsung would have to struggle less to get its phones into people’s hands.

Stay tuned.