AppleInsider Staff
AT&T on Tuesday announced "AT&T Next," a comprehensive smartphone and tablet upgrade program that allows customers to purchase a new device every 12 months with no down payment, and no activation or upgrade fees.
Following rumors of a smartphone upgrade program from Verizon, and on the heels of T-Mobile's "Jump" initiative, AT&T said it will launch its own hardware upgrade plan in "AT&T Next."
Starting July 26, customers can purchase a smartphone or tablet with no down payment, pay a monthly fee for 20 months as part of their wireless bill, and have the option trade in the device after one year to upgrade to a new hardware. Upon trading in their device, the installment cycle for that unit ends, and a new 20 months starts based on the price of the new smartphone or tablet.
Alternatively, customers can opt out of upgrading and pay out the full 20 months of fees, which vary from $15 to $50, depending on make and model.
“With AT&T Next, customers can get the newest smartphone or tablet every year with no down payment," said Ralph de la Vega, president and CEO of AT&T Mobility. "That’s hard to beat, and it’s an incredible value for customers who want the latest and greatest every year."
The cost of the handset is broken down into 20 parts, thus existing or new AT&T customers can purchase a 16GB iPhone 5 and pay $32.50 per month for 12 months and trade in the unit for a next-gen iPhone model, with no further fees required beyond voice and data charges. Those who opt to pay out the 20 months' worth of fees will be able to keep the device, and there is no charge for paying off the entire amount early.
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33 Comments
Geez, ATT and Verizon took a page our of Samesung's book and flat out copied T-Mobile (only made it more expensive). Yawn.
This will most likely keep me from switching. Smart move on their part.
If I'm reading this right they are basically splitting device and fees into separate lines, refiguring the device part based on 20 months not 24 and giving you the option at 12 months to pay off the rest via either cash or trading in your device. Which doesn't really seem like that much better than the old system other than the separate line issue. Might even be worse if she service fees don't go down. Something like $19 of each month was to pay back the subsidy in your iPhone. Imagine if you are still paying that AND the $32.50 a month. That's around $600 in 'device' costs during that year plus you have to turn in your old iPhone. AT&T are so greedy I could see them doing that kind of move since that $19 has always been part of the voice costs But how does that change things for those of us that bring our own device or pay full price from the top so our phone is unlocked (cause I work internationally), do we get a break on our bill or are we still paying at the rates that include device payoff as part of the service fees And do we have to buy at AT&T for this.
Actually renting the phone, thats what it comes down to. And if you break the phone or lose it your screwed. No big advantage other than breaking down the payments.
[quote name="charlituna" url="/t/158501/at-ts-offers-new-smartphone-tablet-upgrade-every-12-months-with-next-plan#post_2362349"]But how does that change things for those of us that bring our own device or pay full price from the top so our phone is unlocked (cause I work internationally), do we get a break on our bill or are we still paying at the rates that include device payoff as part of the service fees[/quote] AT&T does not (currently) give a break on service price now, even if you bring your own phone. I added an iPhone 3GS in Oct for my daughter and they even tried to tell me it was a 2 year commitment!