The country’s second-largest cellphone carrier introduced an option called AT&T Next.
The country’s second-largest cellphone carrier introduced an option called AT&T Next.Associated Press file photo

The carrier announced AT&T Next, an option that lets a smartphone or tablet owner snag a new device every year at no additional costs.

AT&T Next works similarly to plans introduced by rival T-Mobile, which scrap traditional contracts in favor of paying for phones through monthly installments. The AT&T plan allows a consumer to acquire a smartphone and make monthly payments for the full price of the phone with nothing down, then opt to upgrade after 12 months. If a consumer decides to keep his or her phone, he or she make payments for an extra eight months.

AT&T says installments range from $15 to $50 a month, depending on the device. For example, a 16 GB iPhone 5, which carries a full price of $649.99, would be available for $32.50 per month.

The plan became available nationwide Friday.

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