Sprint Plans to Eliminate Two-Year Contracts, Move Exclusively to Leases


Sprint Plans to Eliminate Two-Year Contracts, Move Exclusively to Leases

Did you like Sprint’s earlier news that it would have a sweet iPhone leasing program that lets you upgrade every year? I hope so. Because Sprint has also announced that, by the end of the year, leasing will be the only way to get a phone on Sprint without paying full price.

As reported in the Wall Street Journal, Sprint plans to get rid of two-year contracts entirely. In the past, when you signed a new contract, you’d get a phone for a much lower price (sometimes free). Once your two years were up, you’d own that phone. Recently, the carrier also added the option to pay for phones with a monthly financing plan. By the end of the year, both of these options will be gone entirely.

What will be left is a lease program. Under this plan, you’ll pay an extra fee (determined by the value of the device) on top of your service plan. You’ll then lease that phone for two years. Once those two years are up, you can either choose to pay to purchase the phone, or trade it in for a different phone. If you leave Sprint, you have to give the phone back.


Once this transition takes place—which will finish by the end of the year, though Sprint isn’t specific about when it will start—the lease will be the only option Sprint customers have to get a new phone other than buying a phone for full price. It’s unclear just yet how much it will cost to purchase a phone at the end of a lease, but it does leave users who want to own their devices with fewer options than they had before.

It’s also unclear if the company will offer any form of early upgrade, beyond the existing plan for iPhone users. As it stands right now, only iPhone users will be able to upgrade yearly, regardless of which plan they choose. Hopefully we’ll hear more as the end of the year approaches.

Sprint to Abandon Two-Year Contracts | Wall Street Journal

Photo by Mike Mozart.



T-Mobile Gets Rid of Cellphone Contracts




T-Mobile has done away with cellphone contracts, replacing them with installment plans in an effort to stay competitive in the U.S. market

Instead of offering its customers a phone with a two-year contract, T-Mobile will offer it for a fixed upfront price plus a monthly fee for unlimited calls and data. That second fee will include the cost of the phone, and when the phone is paid off (typically after two years) the fee will be reduced, in contrast with traditional two-year contracts where monthly payments typically stay the same after two years

T-Mobile calls its new pricing plans Simple Choice. For example, a Samsung Galaxy S II costs $ 29.99 today, and $ 16 per month on top of the monthly data/voice payment, for 24 months