AT&T is making some big changes in 2016.
The mobile carrier announced that it is going to nix all two-year contracts beginning January 8. Instead, AT&T will offer installment plans for new phone purchases. In addition, customers will be able to pay for new phones in full, in lieu of signing a contract.
"Our customers are overwhelmingly choosing AT&T Next," said the company in a statement. "Starting January 8, AT&T Next will be the primary way to get a new smartphone at AT&T . This does not apply to business customers under a qualified wireless service agreement."
This change will subsequently lower monthly service costs for cell service customers. However, contracts will still be available for tablets, Wireless Home Phone, mobile hotspots, wearables, and business customers.
Read more: Best cell phone plans & deals for 2016
Verizon is also undergoing some big changes.
The company recently announced that it would offer customers of its rivals as much as $650 per line to switch. A family of four could receive a $2,600 incentive for making the move. But, new customers would also need to purchase a 4G LTE smartphone from the company and trade in the existing device from the previous provider.
T-Mobile data binge
T-Mobile was the first of the big 4 carriers to do away with two-year contracts.
Now, T-Mobile is offering a way for you to watch all the video you want without it being a drain on your cell phone bill. How? The quality of the video is reduced so that it doesn't cost as much, and this can save you big bucks when it comes to avoiding data overages! See more on this offer from T-Mobile here.
All of these changes by the mobile industry illustrate a growing trend to adopt a new business model and leave contracts behind.