AT&T offers phones on monthly installments, with annual upgrades

July 16, 2013

AT&T is offering no-contract smartphones and tablets on monthly installments, with the promise of an annual upgrade, taking on similar offers by competitor T-Mobile US.Starting July 26, the U.S. carrier is offering customers in the country a new smartphone or tablet every year with "no down payment, no activation fee, no upgrade fee and no financing fees," the company said Tuesday.After 12 payments, customers can trade the device in and upgrade to a new one, again without a down payment, or they can continue to use the earlier device without further payments after 20 months. After the upgrade, the remaining unbilled installment payments on the previous device are waived.AT&T's no-contract "Next" plan saves it the expense on hefty subsidies on smartphones for customers, which carriers typically hope to make up through service contracts usually running for two years. It also offers customers the opportunity to upgrade to newer smartphone and tablet models. The AT&T Next program is open to new customers or existing subscribers that are eligible for an upgrade.To read this article in full or to leave a comment, please click here

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