News by Andrew Kameka on Tuesday January 21, 2014.
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AT&T has announced a surprise upgrade plan that will get customers out of their existing wireless contract in order to allow them to upgrade to a new phone and sign up for their AT&T Next program.
AT&T will allow customers on two-year agreements to switch to an AT&T Next program after six months as a customer. Subscribers will be able to get a new phone for $0 down and spread the payments through monthly installments. Switching to a new plan might make sense for someone looking to move to a MobileShare plan or get a new device more often without having to pay the total cost at once.
Why is AT&T suddenly so generous? The easy answer probably has something to do with AT&T responding to the aggressive tactics of T-Mobile, which has stated that it will pay early termination fees (ETF) for families looking to leave larger carriers. Rather than watch impatient customers accept T-Mobile's "Get out of jail free card" and switch carriers, AT&T is enticing its existing customers to get a new phone and a plan that better suits their needs. Someone could still switch to T-Mobile shortly after accepting the deal, but the upgrade program could make leaving less desirable by offering a lower bill and a new phone.source: AT&T
Andrew is MobileBurn.com's managing editor. He is based in Miami, Florida.