AT&T will start selling iPhones without requiring a two-year contract

Mar 20, 2009 11:32 GMT  ·  By

It was only a matter of time before AT&T would confirm its plans to sell contract-free iPhones. According to an official report, the carrier will begin selling the phones under the new policy next Thursday. Evidently, the devices will cost more, as there will be no obligation to apply for a two-year subscription, while prices will vary depending on storage capacity. Also, the handsets will still be “locked” to AT&T.

“AT&T Inc. said Thursday it will start selling iPhones without requiring a two-year contract, but they will cost $400 more,” the Associated Press reports. “Spokesman Michael Coe said Dallas-based AT&T will sell the phones starting next Thursday for $599 or $699, depending on the storage capacity. The two models cost $199 or $299 under contract.”

The report also mentions that AT&T had previously claimed it would begin carrying contract-free iPhones in the US; however, the wireless operator hadn't picked an exact date for this event. The practice has already been adopted in several countries around the globe, leaving AT&T as one of the carriers lagging behind with contract-free offers.

“The new phones will still be 'locked' to AT&T and won't work with any other cellular carrier unless they're modified,” the report reads on. “AT&T will only activate them on the regular iPhone plans, which include a $30 monthly charge for data access. Prepaid service will not be available.”

Quite a few restrictions, if we may add. It almost sounds as if the user is better off with a two-year contract – no muss, no fuss! Plus, we needn't point out that those going with a two-year contract actually save a buck or two.

Apple, for its part, remains to confirm its intentions of selling a contract-free version of the iPhone, while the company continues to sell the device in 8GB and 16GB form using its retail stores and web site. However, Apple fans have higher hopes for an improved version of the handset launching this summer along with the new iPhone OS.