Sprint To End Service Contracts From May 24th

One after another, the largest wireless carriers in America have done away with multi-year contracts and subsidies for smartphones over the past several months. T-Mobile was the one that originally pioneered the concept with its ‘Uncarrier 1.0’ Simple Choice Plan, which was introduced as far back as in 2013. Verizon adopted the concept and implemented the device payment plan late last year while AT&T, too, went the same way in January, 2016. Finally, it was Sprint's turn to follow suit and join its competitors in doing away with multi-year contracts and subsidies for smartphones, as promised back in August, last year.

However, even though the carrier did away with contracts and device subsidies earlier this year, in what seemed to be a complete 180-degree turn, it resurrected the two-year service contract option for existing subscribers just a few short weeks later. Now, however, a low resolution image of what seems like a leaked internal memo from Sprint, seems to show that the carrier is “Saying Goodbye” to service contracts for good from the 24th of this month. However, even as the carrier looks all set to relegate the two-year service contract to the annals of history, customers who add a line or upgrade their handsets, will still be able to sign-up two-year service contracts with the carrier, if only on a reactionary basis.

The leaked memo also seemingly suggests that the carrier will promote lease rentals and monthly installments as its main offers henceforth. Of course, users will also have the option to pay the full retail price upfront, should they feel like doing that for one reason or another. Either way, Sprint’s decision to bring back the contract system was based on what it said was high demand from customers for subsidized smartphones on contracts. However, now that the carrier is doing away with contracts for good, even existing Sprint customers will have one less option to consider once their current contract runs out. Not that it should matter though. Contracts were already the least efficient way of buying smartphones, so being virtually forced to sign-up for installment payment options was probably a blessing in disguise for the American smartphone buyer.

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Kishalaya Kundu

Senior Staff Writer
I've always been a tech buff and have been building my own PCs since as far back as I can remember. My first computer was a home-built desktop running MS-DOS on which I learnt to program in GW-BASIC and my interests apart from technology include automobiles and sports.
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