Is AT&T doing away with 2 year contracts all together or just for the iPhone?
So much for potentially getting a 6S+ with my subsidy.
might be worth holding onto my jailbroken 6+ for quite some time then
I may not be seeing this correctly, but I think people are missing a key concept here. There's still a phone payment plan for those that can't buy one outright. The differences are that now you can get a new phone for $0 instead of $99 or $199 up front and, when you've paid it off over 12-24 months, that monthly fee stops hitting your bill if you keep using that phone for longer than- say- a 12 or 24-month term.
From that perspective, it looks like a much better way to go. I don't see anything in this that makes it impossible for the cash-challenged buyer to get a new iPhone much like they would in the traditional 2-year contract. They still get a new phone, probably by needing less money up front. They still have a portion of the monthly fee they are paying go toward paying off the "subsidy" for the phone.
What appears to be different is at the end. Instead of the monthly payment staying the same should one keep using that phone beyond the 2-year term (even if they've long since paid off the cost of the phone), somewhere during the 2 years, they will pay for the phone in full and their monthly bill will go down by whatever portion of the bill was allocated to paying for the phone.
Very simply: if service was $50 and paying for the phone $35...
-in the old way (2 year contract), you were set up to pay $85 for as long as you wanted to stick with that phone. If you stuck with it beyond 2 years, you kept paying $85 which converted the $35 that was going toward the phone to added profit for AT&T
-in the new way (no contract), you might still be set up to pay the $85 but once the phone portion of that bill is paid in full, the monthly would drop to $50.
Now, I just made up the $50 and $35 to illustrate the concept but hopefully the illustration does it's job. And this says nothing about the quality of Next service itself from AT&T vs. someone's former 2-year plan benefits.