Sprint has resurrected its two-year contracts for smartphones after ending them early last month, which makes it the only major nationwide carrier in the United States to offer the payment plan. Verizon, T-Mobile, and AT&T have not brought the option back for new mobile devices. The telecom giant Sprint stated that it took the action after receiving feedback from customers that they wanted to have the 24-month option.
AT&T and Sprint offered the two-year contract option until January 8 and T-Mobile ditched it in 2013. Meanwhile, Verizon started to limit the option to customers already under contract last August, according to The Verge.
In the past the two-year contract was a key to the US mobile phone business. However, it locked customers into agreements with one wireless carrier's network while the true price of the phone was unclear. Another factor is that new smartphone models are released more often now.
T-Mobile, Verizon, and AT&T now only sell full-price handsets through monthly installment plans. They also make it easier for customers to switch to other mobile networks.
The difference is that it seems many Sprint customers wanted to bring back the 2-year contract option. It is unclear why but it could be related to brand loyalty or paying more for an Apple or Android phone than it is worth.
Another possible issue is that Sprint has been struggling during the past couple years. It is losing customers and finding ways to cut costs such as employee layoffs, closing in-store repair centers, and even giving store workers more cleaning tasks, according to GSMArena.
It is possible that Sprint truly wants to keep customers from leaving. Old-school customers might be used to the two-year contract system, and prefer to make a small payment before getting a new phone. They are just required to stay with a carrier for 24 months.
Early costs of the 2-year contract and 24 month finance plan are about the same. The main difference is that the latter gives customers a chance to switch phones after one year.
It is also possible that fans of 2-year contracts simply do not want to learn about how they could benefit from leasing or financing programs.
Here are some top no-contract phones: