AT&T is planning to stop offering two-year contract via third-party retailers starting June 1. The two-year contract will still be available from AT&T stores and through the company's official website.

Customers looking to take a two-year smartphone contract from AT&T may find it difficult after May as local and national dealers will only offer AT&T Next 12, 18 or 24 instalment plans. The move from AT&T means that customers will not get a discount on handsets as offered by third-party retailers.

FierceWireless claims that it has seen an internal Walmart document that suggests the retailer will no longer offer AT&T's two-year contract from May 28 onwards. However, Walmart will still offer AT&T smartphones as part of the carrier's Next plans. The leaked document may mean that this change is not just limited to Walmart but includes other retailers as well.

The AT&T Next 12, 18 or 24 instalment plans do not require any down payment to be made by a customer. Instead, the customer has to pay the price of the smartphone in 20, 24 and 30 equal monthly instalments.

The carrier has been aggressively promoting its Next plans to smartphone customers. With the Next instalment plan, customers have the opportunity to upgrade earlier in comparison to a two-year contract. Next plan customers also get a discount on the carrier's service pricing.

With the Next plans, there are no activation fees or financing fees. However, the customer has to pay a tax at the time of purchase.

AT&T has also revealed that over 30 percent of its postpaid smartphone customers are on Next plans.

"Customers love AT&T Next, and we are continuing to focus on it as the preferred way that customers want to shop. We have two-year plans available for those customers who choose them," stated AT&T.

Apple has already started offering iPhones with Next plans since 2014. Rumors suggest that Apple will also start offering iPhones only on AT&T Next plans from June 1 onwards.

Along with the Next 12, 18 and 24 plans, AT&T's Next plans also include the Next 12 with a down payment option, which requires customers pay 30 percent of the retail price upfront and the remaining in 28 equal instalments.

Photo: Mike Mozart | Flickr

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