October 22nd, 2019
About a decade ago it was common practice for carriers like Verizon and AT&T to sell customers the full retail price of a phone accompanied by a 2 year service contract, and then the customer would own the phone in full. However, with the rising cost of smartphones a transition took place in the industry and now it is more common for customers to enter a financing agreement with the carrier and make monthly payments, typically 18 to 24 months (under 2 years in most cases). Carriers essentially roll the cost of the phone into the monthly service plan, while also eliminating previous 2 year contracts, enabling customers to upgrade more frequently or change their service plans as needed.
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