AT&T’s third-party retailers to stop offering two-year service contracts
posted by Maxwell R. / May 21, 2015, 1:31 AM
That puts AT&T Next, the carrier’s equipment installment pricing program, front and center when it is time to upgrade a device or activate new service. Another alternative is to pay full retail price for the device.
For the near term, AT&T company-owned retail stores, att.com, and tele-sales will still be able to offer contracts and subsidized pricing. In some instances, the authorized retailers may as well, but they would have to play a “direct fulfillment” order to do so, leaving the customer having to wait a couple days for the device to be delivered to their home.
This is likely the initial step to eliminate contracts altogether with AT&T, and it ultimately simplifies the options for customers. However, it is also probably a prudent move to take things one-step-at-a-time since there are still plenty of people that think buying a subsidized device on contract is the better value for them.
Where retailers, company-owned or otherwise, will still provide two-year contract options, will be for feature phones, tablets, connected devices, and bundled promotions, so it really illustrates the gradual approach the nation’s second largest carrier is taking.
What is not in doubt at all is that this is a move in response to T-Mobile’s highly visible (and successful) market strategy. Team Magenta did away with contracts across the board two years ago.
source: Droid Life
So, these scumbag carriers want to continue to RAPE us with service fees that are MUCH higher that Europeans, and now they want to start charging FULL PRICE for the phones TOO? Well, F YOU !!!!! If you want US customers to pay full price for our phones like European customers, then you have to charge the same lower service fees that the European carriers do. Greedy piece of #hit companies !!!!!!
posted on May 21, 2015, 1:44 AM 2
Posts: 854; Member since: Apr 22, 2013
Subsidies sucked on the old plans. You paid the same on or off contract. At least now your bill drops when the phone is paid off. Isn't that why the ifixit repair scores on phones are so nice to have?
posted on May 21, 2015, 2:31 AM 1
Posts: 9; Member since: Apr 27, 2015
One thing I will say, for those that are okay with contract pricing this is going to have a negative affect big time. I'm okay with buying a phone on a subsidized rate if I sign a contract, as long as I have my service I don't mind being in a contract. The programs like AT&T Next, or Verizon Edge are not the solution. No, you are not in contract with the carrier for your plan but you are in contract for the device you're paying for. Say you mad 14 payments and you want to end your service with said carrier. At the time of termination of your service, the rest of the phone's cost is due at that time. Replacing one contract with another.
posted on May 21, 2015, 7:41 AM 0
Posts: 45; Member since: Apr 14, 2015
Its amazing how T-Mobile made the Standard ETF jump from 325$ for a smartphone jump to 649$+ for a Smartphone, and everybody loved it! Now the rest of the Carriers are switching to this. I just hope sprints Phone Rental (Leasing) doesn't catch on.
posted on May 21, 2015, 1:16 PM 0
Posts: 1149; Member since: Feb 11, 2010
That is the reason why my family and I havent switched over to T-Mobile. I have AT&T and as much as I love the service, the bill is too high. T-Mobile needs to improve their coverage in order to grab customers like my family and I to head over to them
posted on May 21, 2015, 4:44 PM 0
Posts: 23; Member since: Mar 06, 2015
I'm surprised that the wireless carriers don't offer a solution that will solve both problems. Meaning a prepaid bundle pack. Where a customer would have the option of buying a phone bundled with a choice of 12, 18, or 24 months of prepaid service if paid in advance upfront. This would help "subsidize" the price of the phone, eliminate the need for a credit check, eliminate the need to sign a contract, eliminate monthly billing and eliminate the need for prepaid refill cards. But apparently the wireless carriers are too stupid to figure this out
posted on May 21, 2015, 8:10 AM 0
Posts: 1946; Member since: Feb 15, 2012
Here's the problem. Is not as much people crying about prices, but as much of carriers being slick. They will have the current pricing model, but without the subsidize phone. Hence, you have to purchase the phone, full prize, and pay today's prices for the plans. Is all about money, these greedy companies are not going to lower the prices. Is all a balancing act, and they are accountable to their stock holders. If you work for AT&T, I highly advise you to look for a new job; is either price increases or/and reduce manpower; they are not shy when it comes to the using the ax. Just like the handwriting was on the wall for the workers of the Moto factory in Texas.
posted on May 21, 2015, 10:54 AM 2
Posts: 854; Member since: Apr 22, 2013
You missed that they changed the pricing model over a year ago. Your accusation would be true under the old nation, family talk and mobile share (not the value) plans. Wrong views based off of old news. Update my man! FYI:http://www.cwa-union.org
posted on May 21, 2015, 11:34 AM 1
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