The signage for an AT&T store is seen in New York October 29, 2014. (Photo : REUTERS/SHANNON STAPLETON)
AT&T announced on Monday that it is instituting a new set of financing plans for its smartphone customers. The network provider added that instead of four available plans, it is reducing it to two namely: Next Every Year and Next.
The two new plans will replace the existing plans which are: Next 12, Next 18, Next 24, and Next wit Down Payment. The new plans will kick off on June 9, according to CNet. Some analysts pointed that while the two new plans are possibly easier to understand that the ones it currently offer, the new plans will not give customers the option to pay off their devices in fewer installments.
Essentially, the new Next plan is just a rebranded version of the older Next 24 plan. The plan allow customers to split the cost of a device over a period of 30 equal installments and after 24 payments customers are allowed to upgrade their device by simply trading it.
The new Next Every Year plan is a bit similar to the old Next 18 plan, only this time the upgrades can be availed much sooner. The Next Every Year plan is a 24-month payment plan which allows users to have a trade in upgrade after 12 months.
With the introduction of these two new plans, AT&T is ditching the Next 12 plan which allows customers to pay off their device in less than 24 equal installments. On the other hand, AT&T said that those customers who want to pay off their plan sooner than what stipulated on the contract can do so by making extra payments on top of their regular monthly installments.
According to The Verge, the two new plans will allow users to get new top-tiered devices by paying a 30 percent down payment of the entire cost of the plan. This means that a 64GB iPhone 6S which typically costs $479 will cost customers $25 per month if they choose to pick the Next plan or $31.25 should they go with the Next Every Year plan. Moreover, AT&T is charging a one-time only $20 activation fee for customers who will sign up for the new Next plans.
Below is a TV commercial highlight AT&T's plans along with iPhone's Siri.
