AT&T extends wait for new phone to 2 years

Jun 10, 2013 by Peter Svensson

AT&T is extending from 20 months to 24 months the time it takes for customers on contract-based plans to earn a fully subsidized upgrade to a new phone.

The move announced Sunday follows an identical one by Verizon Wireless in April. AT&T's new policy applies to any customer whose contract expires in March 2014 or later.

Extending the time between phone upgrades saves the phone companies money, since they subsidize each new by hundreds of dollars to make it available to customers for $199 or less.

The change reflects the growing popularity of expensive phones. Verizon subsidized upgrades after just 13 months until January 2011, just before it introduced the iPhone, one of the most expensive phones on a wholesale basis. Carriers pay Apple over $600 for it.

Explore further: Cruising high seas, engineers detect fake GPS signals

5 /5 (2 votes)
add to favorites email to friend print save as pdf

Related Stories

Verizon to extend phone-upgrade waiting period

Apr 12, 2013

(AP)—Verizon Wireless, the country's largest cellphone carrier, is extending the time it takes to earn a subsidized phone upgrade from 20 months on contract to 24 months.

T-Mobile gets rid of contracts for cellphones

Mar 25, 2013

(AP)—T-Mobile USA, the struggling No. 4 cellphone company, is ditching plans centered on familiar two-year contracts in favor of selling phones on installment plans.

AT&T to raise fees for iPhone contract breakers

May 21, 2010

(AP) -- AT&T Inc. is raising the fees it charges buyers of the iPhone and other smart phones if they break their two-year contracts, while lowering them for "dumb" phones to better align the fees with their real costs.

Recommended for you

BlackBerry to buy Germany's Secusmart

3 minutes ago

(AP)—German voice and data encryption specialist Secusmart, which helps equip the German government with secure smartphones, says it's being acquired by BlackBerry for an undisclosed sum.

India's Flipkart raises $1 bn to tackle Amazon

1 hour ago

India's top e-commerce company Flipkart said Tuesday it had raised $1 billion (60 billion rupees) in funds as it battles US giant Amazon for supremacy in the hyper-competitive local market.

Audi tests its A7 driverless vehicle on Florida highway

1 hour ago

German automaker Audi made use of a Florida law passed in 2012 that allows for testing driverless vehicles on Florida highways this past Sunday and Monday, by requesting a shutdown of Tampa's Lee Roy Selmon ...

Printing the metals of the future

3 hours ago

3-D printers can create all kinds of things, from eyeglasses to implantable medical devices, straight from a computer model and without the need for molds. But for making spacecraft, engineers sometimes need ...

Turning bio-waste into hydrogen

4 hours ago

Whilst hydrogen cars look set to be the next big thing in an increasingly carbon footprint-aware society, sustainable methods to produce hydrogen are still in their early stages. The HYTIME project is working on a novel production ...

User comments : 0