AT&T will no longer offer two-year contracts starting January 8, 2016.
Soon, customers will only be allowed to buy a phone by paying for its full cost up front or through monthly installments on the AT&T Next platform.
“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,” an AT&T spokesperson told Tech Insider.
“Starting January 8, AT&T Next will be the primary way to get a new smartphone at AT&T. This does not apply to business customers under a qualified wireless service agreement,” the rep added.
AT&T, Verizon, Sprint, and T-Mobile have been moving towards contract-free service offerings all year.
The idea is to offer better monthly plans and shared data access while no longer paying to subsidize a customer’s phone purchase.