In what seems to be a stock clearing move, AT&T will start offering the blockbuster iPhone without two-year contract and with no activation charges at all from next week, according to a blog post from Boy Genius Report.
However, the move may sound appealing to the phone fashionistas, who simply dislike binding to networks, but they have to pay hefty price for this, as no-contract iPhone models sport price tags $400 more than that of their original contract prices.
The company will be offering the 8GB version of iPhone 3G for $500 and 16GB version for a whopping $699, making it exceedingly expensive for a number of users. Besides, the phone is still locked to the AT&T networks, but this the users need not commit for two years worth of contract.
The move requires users to buy the phone along with a two-year contract, paying for a month’s subscription, and subsequently terminating the plan after paying early termination charges, making the phones even costlier, as the iPhone 8GB model would cost around $476 after the entire process.
However, existing AT&T customers can purchase the no-contract iPhones, on the basis the time left on their contract and their payment records. “This is simply another way AT&T customers can experience iPhone 3G on the nation's fastest 3G network”, the company said in a statement.
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Make no mistake, those no contract phones are basically Pay as you go models, the same that sell for £352 for the 8GB and £401 for the 16GB. Therefore AT&T is proper fleecing its users especially given the fact that the next generation iPhone is expected to be released within the next four months.
(Boy Genius Report)