Sprint Corp. said Monday that they are getting rid of their two year contracts and will be shifting to a policy where customers can lease their smartphones.
Sprint is following in the footsteps of Verizon Wireless Inc., who announced they will no longer be selling contracts earlier this month, and T-Mobile US, who got rid of their contracts two years ago. AT&T Inc. is the only carrier in the U.S. that still offers contracts, according to Wall Street Journal.
Two-year contracts have been in for a while, but now carriers mostly provide monthly plans without contracts and require customers to pay full price for their devices. Those payments are usually made in monthly installments spread out over two years.
Sprint has offered a similar plan since last year, but Sprint’s chief executive Marcelo Claure announced Monday that they would be switching to the model entirely by the end of 2015. That means customers will only be able to pay full price or lease their phones from the carrier. Sprint revealed that 51 percent of customers chose the leasing option last quarter, WSJ reports.
Additionally, Sprint announced a new plan for iPhone lovers. Their new iPhone Forever plan allows customers to upgrade to the new iPhone each year.
If you choose the iPhone Forever option, you can pick up iPhone’s latest smartphone release for $22 per month in addition to your monthly service fees, PC Magazine reports. When Apple comes out with a new iPhone, you can upgrade instantly. You just have to keep paying the $22 per month.
New and existing customers will only pay $15 month if they trade in their phones and sign on to iPhone Forever before Dec. 31. So if customers upgrade after Dec. 31, they won’t get the discount.
The problem with this is that Sprint is only offering the iPhone 6. So if you are a person who needs a LOT of space on your iPhone, then you’re out of luck. You can’t get the iPhone 6 plus with the promotion.
This news comes just after Sprint’s rival T-Mobile announced a new plan called “Jump on Demand.” This allows users to upgrade their iPhones three times throughout the year on 18-month payment plans, according to PC. Customers also get a 16GB iPhone 6 plus when trading in their devices.