AT&T announced Tuesday, a new comprehensive smartphone and tablet upgrade program offering customers an option to upgrade their existing device to a new model with zero down payment and no activation fees.
AT&T plans to go head-to-head with its competitors, especially T-Mobile after it launched "Jump" initiative. AT&T announced "Next," a new program which offers customers an option to upgrade their smartphones and tablets every 12 months and pay in 20 monthly installments. AT&T is not charging any activation or upgrade fees, and is offering the device at zero down payment.
T-Mobile was the first major U.S. carrier to introduce a similar installment plan aimed at transforming the wireless industry. T-Mobile's Jump initiative allows its customers to upgrade its device twice a year for an addition $10 monthly fee.
An AT&T customer can purchase a smartphone or a tablet with no down payment, pay monthly fees for 20 months added in the customer's wireless bill, instead of paying upfront for the device and signing a two-year contract. The monthly installment cost varies from $15 to $50 based on the model and make of the phone. The cost of the device will be broken into 20 parts, thus an existing or a new AT&T customer will pay $32.50 a month for an iPhone 5 in addition to the wireless service plan. Similarly for Samsung Galaxy S4, customers will pay $32 a month and $30 for HTC One. Customers can choose to pay full 20 installments and keep the device.
Customers can bag their favorite handset from the second-largest U.S. wireless carrier starting July 26. The offer will serve as a good deal for those who like to stay ahead with the latest technology in hand, with of course paying the price for it.
"With AT&T Next, customers can get the newest smartphone or tablet every year with no down payment," Ralph de la Vega, president and CEO of AT&T Mobility, said in a statement. "That's hard to beat, and it's an incredible value for customers who want the latest and greatest every year."
AT&T continues the two-year contract option for interested buyers, along with an option to pay full price for the device or bring a phone within the network.
