AT&T announced it is tweaking its cellular plan to give no-contract customers a break, All Things Digital reported.
The company's new "Mobile Share Value" plan, which will be available on Sunday, will offer discounted rates to customers who do not receive the financial benefits given to those switching to the carrier or signing up for a new two-year contract.
"AT&T is finally starting to edge out of the phone subsidy scam, and we have T-Mobile to thank for it. For many years, carriers would charge the same monthly rate whether you were paying off a subsidized phone or not - if they weren't recouping the subsidy, they'd just reap extra profit," according to PCMAG.
Customers who buy new phones outright, bring their own device, or finance their purchase through AT&T's no-money-down Next option will be eligible for the new plan. Current customers can also shift to one of the new plans once they have completed their contract commitment for their existing phone.
Customers who aren't paying off a subsidized phone, pay $15 per month less. That effectively neutralizes a $360 subsidy. The move comes amid intensifying pressure in the wireless business.
Other mobile companies such as T-Mobile and Sprint offer similar no-contract options that offer discounted phone plans. AT&T spokesman Mark Siegel said T-Mobile and Sprint moves did not prompt AT&T's new plans.
"We look to our left and to our right and are aware of what our competitors are doing," Siegel said in a statement. "But our primary focus is right in front of us - on our customers. They've told us they want even more choice and flexibility ... when they buy services and devices. And, they want to get a great price."
PCMAG said that "by reducing its prices, AT&T is finally addressing the biggest knock on its prior no-contract plans: the lack of a discount that should come from not accepting a subsidized phone."
