AT&T: No-contract iPhones coming next week

Starting next week, AT&T will sell iPhones without requiring a two-year contract.

(Credit: Apple)

AT&T has confirmed a report that it will offer iPhones without a two-year contract starting next week.

The Associated Press quoted an AT&T representative Thursday confirming plans to sell no-contract iPhones for $599 or $699 starting next Thursday, as first reported Wednesday by the Boy Genius Report. There's a catch, however; those phones will still be locked to AT&T's network.

A regular AT&T iPhone account will be required to operate the phone, although theoretically you could activate the phone one day, cancel your account the next, and only be out activation fees and a month's worth of service, rather than two years worth of service. But then you'd be reduced to using your expensive iPhone over just Wi-Fi networks unless you're willing to unlock it for other networks.

An Apple representative did not immediately return a call seeking comment on whether a similar offer would be in place at Apple's retail stores, which the AP was also unable to confirm.

[Argyll]

If you're going to go sans the phone then just buy the iPod Touch and save $400.00

[blusky08]

The iPod Touch has no built in mic or speaker. Hence, a no-contract iPhone could be used by those who want all the features of the iPod, plus want to use VOIP rather than contracted mobile service.

That said, once you calculate in the VOIP costs, the savings are negligible at $599-699. (A two year contract w/iPhone=approx. $900).

[SleepyInKC]

Actually, the iPod Touch 2nd Generation does have a built-in speaker. So it just needs an add-on microphone to do VOIP.

I'd like to see a no-contract iPhone where you could use it for "prepaid" phone service, but it doesn't sound like that's in the cards.

[blusky08]

But you need an typical phone ear speaker--unless you want to use it as a speaker phone or use headphones.

[Maccess]

They sell an open line iPhone in Hong Kong although you'd still need to sign up for a plan with the local phone company. Hong Kong travellers buy a local pre-paid SIM in each of the countries they visit and need a phone that will work with any SIM card.

[Mark_Anderson]

Is this a surprise? O2 have been doing this for months in the UK.

[Notoapplefanbois]

And at current times a 16gb inc vat from 02 is $35 cheaper than an 8gb from AT&T, to unlock it would cost another $30 and then add shipping and it's more but only because in the US it costs loads to send stuff.($46 in US on one set of items whereas in UK it would cost £10 for same distance)

So if you want a PAYG iPhone and don't care about crude telecom service, move to the UK and save a few $'s

[techie_guy4]

599 or 699 and still locked to AT&T? AT&T Is one BIG PARASITE Suc ..ing money out of its customers.. guys get cheaper unlocked phones from ebay and other sites..

[Notoapplefanbois]

No it's apple's price, even in my country which is VAT free, an unlocked one costs £530.

[techie_guy4]

599 or 699 and still locked to AT&T? AT&T Is one BIG PARASITE Suc ..ing money out of its customers.. guys get cheaper unlocked phones from ebay and other sites..

[bballkid590]

maybe this means that the att-only contract is about to be expired?

[darkstar32170]

I agree. I would bet that ATT is looking to dump inventory before they have to compete with T-mobil (with fully functional phones) They may also have to complete with Sprint and Verizon but the same phone won't work with them. Rumor has it that Apple is working on a CDMA version. After the two years with ATT I doubt that Apple will make any more exclusive agreements (aka Verizon but not Sprint).

[assman]

I don't think anyone is stupid enough to buy this.. pay twice as much and still be stuck with AT&T. Doesn't make any sense.

[blusky08]

NO CONTRACT=ZERO SENSE.
DO THE MATH: You must have a monthly AT&T plan anyway (contract or no contract).
The ONLY extra expense is $30/month for internet.
Two year contract cost: iPHone ($199), plus $30 x 24months=$919. So, you may save a measely ~$200 over 2 years by not having a contract with unlimited internet.

[ThePantsParty]

@ blusky08

To do the math you have to KNOW the math. Where did you ever get the impression that you don't have to have the data plan to use the iphone if it's out of contract? I work for ATT, and to have an iphone activated on the account, you have to have the data plan, we're not changing that. The only difference here is the cost of the phone, the price plan doesn't change at all.

[blusky08]

Correct. The point was that for those wishing to use this as a jailbroken device or simply for VOIP w/o contract, the savings are minimal (if any).

[kingrah1]

Any word on if you can use it with a prepaid account??

[nickdeng]

Network? will know if locked or not on the release day, att won't be stupid to fool ppl. like that. due to so many complaint about lock from FCC, it may just unlocked. buy your freedom.

[lil-yankee]

This is ridiculous, why would anyone do that?
there arent any advantages. In any case, people could just go to any store and get the 16gb iphone for 499 unlocked and pwned. I dont see where att is going with this.

[iff2mastamatt]

I should've waited for this, I just bought an unlocked Nokia E71. Awww well.

[deecee]

Well count yourself lucky then, because you will be much happier than an Unlocked E71 than any of the iPhone period. I have had my E71 for more than 8 months now, and I can't help but smirk whenever people talk up the iPhone. There're plenty phones out there better than iPhone and you could do much worse than the E71, but certainly did better than getting an iPhone locked to ATT for 700 bucks.

[Ramon366]

I'm on year number two with iPhone & ATT on a month to month basis. I'm really thinking of severing all ties with them and go strictly to emails when I'm on the street. Everything about ATT is scam and a money grab. I'm very disappointed that Apple thought that this would enhance their image with their loyal customers.

[gb121b]

Absolutely agree! Their sales rep and customer service "tricked" me into locking into a 2 year contract right before I planned to go abroad for 8 months, telling me "you can suspend the phone/data service and just pay a low fee to keep your number, no problem!" I even have such responses in writing from them. But when I actually asked them to put me on such a plan later, they said there is no such option and I have to pay $70/month no matter what. I spoke to the manager, and she said, 'you can't listen to the sales rep or customer service, you have to go by the contract you signed, which says you are responsible for the monthly fees." I asked them to send me a copy of the contract, they only sent a page with my signature, but no actual contract...

[juliahix00]

very exciting

[santihossni]

But I thought there was a law stating that we could change our phone companies as we pleased and keep the phone number? If I was a lawyer, my eyes would be glittering with cash $igns right now!

[rapier1]

You can change your compnay and keep your number but that doesn't mean your phone has to be supported on any other network. All you get is phone number portability not phone portability.

[the_iceman]

contracts are for the birds, but this phone seems a wee bit overpriced, similar to sony & bose electronics.
I'm good w/ my T-mobile to go pre-paid, thanks.

[Notoapplefanbois]

It's just apple's pricing, it's probably subsidized by AT&T aswell like 02 has done.

Actual pricing of an Iphone is around $100 more.

[ferretboy88]

Stupid.

[baggyguy1218]

I would buy an iPhone but not for 600 bucks!

[etiahwhite]

AT&T would be foolish to unlock the phone and honestly was anyone really expecting it to be unlocked. Wowser I can't imagine why they'd want to make as much money as possible....But I tell you what if I see them asking for bail out money then I'll get all up in arms.

[canberra_photographer]

We have had the same thing in Australia ever since the iPhone was released and it is just as big of a rip off. Initially, you could get the iPhone prepaid and locked to Optus for $749 (8GB) and unlock it for $80. That offer ended but another carrier, Telstra began selling the 8GB model without a contract for $762. It's locked to the Telstra network though so they charge $150 to unlock it. So a completely unlocked 8GB iPhone costs at least $912!
That makes the iPhone cheaper in Australia than similar models from HTC and Palm which end up costing around $1100 unlocked but its still steep.

[Notoapplefanbois]

Still overpriced, you can get an 8gb for £341 from 02 inc vat and get an illegitimate unlock service for £20 which comes to AUD$759

[sn0wman108]

Why not just buy an iPhone under contract, cancel your contract and paying the $200 ETF and then having the same phone without a contract for $400 instead of $600.

[typicalhero]

Exactly!!!!!!!!!!!!!!!
Too bad there'll be all too many poor shmucks falling for this SCAM by ATT.

[blusky08]

I believe the contract cancellation fine print allows AT&T to actually charge full retail for the device. They may be greedy, but they aren't stupid.

[ThePantsParty]

The ETF is 175.00 and declines by 5.00 per month. Blusky, you're wrong again, the ETF is the only fee for cancelling.

[blusky08]

Sorry--you have to do a little digging and read the full legal details, but I've read them. They do reserve the right to charge full price in such instances.

[ThePantsParty]

Well show me what you dug up then. Here's the url to our ToS: http://www.wireless.att.com/cell-phone-service/legal/service-agreement.jsp?q_termsKey=postpaidServiceAgreement&q_termsName=Service+Agreement Like I said before, this is what I do all day, there is no charge for the phone. Only the ETF.

[bigdawgmagnum]

even after you do that the phone will still be locked to att and unable to change networks iv survived wit them since they were cingular (when it was a good company)