Sprint Stops Offering Two-Year Phone Contracts

Sprint will stop offering two-year phone contracts to customers who are activating a new account starting today, according to an internal document procured by AndroidCentral. While phones will not be available with subsidies on a two-year contract, tablets will.

sprint-end-of-2-year-wm

As outlined by the document, two-year contracts will still be offered to select customers on a “reactive basis”. The move makes Sprint the final carrier of the four major American carriers to end two-year contracts. New Sprint customers will be able to purchase their phones through Sprint programs like Easy Pay and iPhone Forever.

In 2013, T-Mobile began the trend by announcing its Un-carrier payment plans. Verizon followed suit in August 2015 and last month AT&T announced that they would drop two-year contracts. While AT&T’s implementation takes away the ability for existing customers to sign up for two-year contracts, Verizon’s does not, allowing existing Verizon customers to renew their two-year contracts.

Sprint has been planning to move away from two-year contracts for a while, first announcing the move in August 2015. However, the carrier had not announced when its implementation would take effect at the time.

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Sprint today introduced a new plan called “iPhone Forever,” which grants upgrade eligibility for the newest iPhone to any customer who doesn’t have the most current version of Apple’s flagship smartphone on their contract. The plan goes into effect today, and the company is opening the data plan to both new and old Sprint users, although the latter must have an upgrade eligible device to start using iPhone Forever.

iPhone Forever chart

“We asked ourselves, ‘What could we do that would move our customers forward with the latest and greatest technology every day?’ said Marcelo Claure, Sprint CEO. “We decided: How awesome would it be if anytime customers don’t have the latest iPhone, they are eligible to upgrade, and have it be as simple as handing us your existing iPhone and picking up a new one – all included in your monthly rate.”

iPhone Forever lets customers get an iPhone for $22 a month, with the simple rule that anytime they don’t have the latest iPhone on their plan, they are automatically eligible for an upgrade. Sprint is also discounting the service to $15 per month for any customer who trades in an existing smartphone, the catch being that the new phone purchased has to be a 16GB iPhone 6, and the monthly rate will increase back to the normal amount after their next upgrade.

The $15 promotion will last until December 31, 2015, and the company notes that iPhone Forever is available on “any eligible Sprint rate plan.” Sprint’s announcement today follows a few week’s worth of other carriers‘ detailing the introduction of their own brand new service plans for customers, no doubt all preparing for the next-generation iPhone launch sometime next month.


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