‘AT&T Next’: Buy new smartphone/tablet yearly, pay over 12 months ($0 down)

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Following major announcements from T-Mobile and Sprint (and rumors about big device upgrade changes at Verizon Wireless), AT&T has made its “network related” announcement that it teased last week. The company has introduced a new program named “AT&T Next.” Similar to T-Mobile’s new “Un-carrier” offering, AT&T Next allows users to upgrade their smartphone or tablet device each year (T-Mobile, though, allows this two happen twice a year).

“With AT&T Next, customers can get the newest smartphone or tablet every year with no down payment. That’s hard to beat, and it’s an incredible value for customers who want the latest and greatest every year,” said Ralph de la Vega, president and chief executive officer of AT&T Mobility.

In a change from the typical ways of purchasing a phone upfront with no contract or at a subsidy with a contract, AT&T Next allows a customer to purchase a smartphone or tablet with $0 down payment and pay for the device with a monthly cost. For example, according to AT&T, a customer who wants a Samsung Galaxy S4 can purchase the device with no down payment and pay an extra $32 per month (on top of their standard monthly service bill). More details below:

AT&T says that monthly device pricing will vary by product, but the range is between $15 and $50 per month. AT&T says that all devices in its current arsenal are supported, and this is for both current (upgrade-elgible) and new customers. T-Mobile’s new “Uncarrier” approach offers a similar payment strategy, but AT&T’s program lets you pay off the device in 20 months (versus T-Mobile’s plans that are built around 24 months). Verizon’s upcoming Edge program is also strikingly similar.

AT&T Next users will pay that monthly device fee each month for 12 months (one year), and after this year, a customer can upgrade to a new smartphone or tablet. With this plan, there are no activation fees, upgrade fees, or financing fees, according to AT&T.

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The program begins July 26th.

If a customer wants to retain their current device beyond 12 months, they could keep paying the monthly fee for 20 months (in total) in order to completely pay off the hardware price.

AT&T says that the new Next program is an additional offering to existing plans, and customers who want to buy phones or tablets the “classic” way can do so via a normal two year contract and hardware subsidy.

Full press release below:

Today, AT&T* introduces what’s next in wireless. Beginning nationwide on July 26, consumers can get a new AT&T smartphone or tablet every year with no down payment, no activation fee, no upgrade fee and no financing fees.**

With AT&T Next, customers purchase a smartphone or tablet with no down payment and agree to pay monthly installments for the device. After 12 payments, they can trade it in and upgrade to a brand new device — again with no down payment — or they can keep using their device and have no more payments after 20 months. AT&T Next is available for new AT&T customers or existing customers who are upgrade eligible.

“With AT&T Next, customers can get the newest smartphone or tablet every year with no down payment. That’s hard to beat, and it’s an incredible value for customers who want the latest and greatest every year,” said Ralph de la Vega, president and chief executive officer of AT&T Mobility.

AT&T’s 4G LTE network now covers more than 225 million people nationwide and 328 markets. AT&T’s 4G LTE deployment is expected to cover 300 million people by year-end 2014, with nearly 90 percent of the build completed by the end of this year.

The great performance of AT&T’s network continues to be validated by independent third-party testing. AT&T 4G LTE service was recognized as having faster average download and upload speeds than any of our competitors in PCWorld/TechHive’s most recent 20-market speed tests — the second consecutive year that AT&T has ranked first overall. PCWorld/TechHive also ranked AT&T’s as the fastest combination of 3G and 4G services in the 20 cities it tested.*** And AT&T was named America’s fastest 4G LTE network in PC Magazine’s 2013 Fastest Mobile Networks 30-market study — and also swept the top rankings in all six U.S. regions from coast to coast: Northeast, Southeast, North-Central, South-Central, Northwest and Southwest.****

AT&T Next is available for any current smartphone or tablet in AT&T’s industry-leading selection of devices. The interest-free monthly device installments range from $15 to $50, depending on the device selected. For example, a customer purchasing a Samsung Galaxy® S 4 would have no down payment and pay $32 per month, in addition to the monthly wireless service plan they choose, with the option to trade in their device and upgrade after 12 payments or to keep using the device and pay off the installment plan in full after 20 months. There’s no penalty for paying off the installment plan early.

AT&T offers a broad choice of device purchasing options. In addition to AT&T Next, customers continue to have their choice of all current options, including getting a discounted device with a two-year service commitment; paying full retail price for a device with no-commitment; getting a partial discount for an early upgrade after six months with a two-year service commitment; or bringing their own compatible device.

More information is available at www.att.com/next or at any AT&T retail store.