AT&T stops its sales of subsidized tablets
Like most carriers, AT&T sells cellular network-compatible tablets. Some of them are sold on subsidization, a term that basically means you are paying off your device (that you got at a “discount”) throughout your carrier’s contract. Others are sold at full price, meaning that you could go anywhere else and get the same price.
But now, AT&T has done away with selling tablets on subsidization – and will begin selling all of its tablets for the full price, minus a contract. The news comes from a leaked AT&T memo that Engadget obtained, wherein AT&T states that:
“Customers purchasing a tablet after August 19, 2012, no longer have a two-year pricing option. The only option available will be the no commitment pricing.”
The memo turned out to be true, as none of AT&T’s tablets are currently for sale with any sort of a subsidized price.
This does bode well for consumers, though. As you probably already know, subsidization makes monthly plans more costly. As a result of cutting subsidized tablets, AT&T has been able to lower the price of monthly tablet data plans by $5; now, the prices are 250MB for $15, 3GB for $30, and 5GB for $50.
What are your thoughts on subsidization? Do you like that your monthly bills will be $5 cheaper, or would you have rather saved the money upfront?[Engadget via CNET]