“AT&T’s new smartphone service plan — which is designed to encourage smartphone owners to upgrade to a new model every year, rather than stay locked into a device-subsidized two-year contract — is misguided and dumb, at least for iPhone owner,” Chris Maxcer writes for MacNewsWorld.

“Still, I’m quite pleased to see AT&T’s plan,” Maxcer writes. “Anything that decouples the cost of an iPhone from a long-term contract and service plan is good for the industry. Consumers need to know that smartphones don’t cost US$199. They also need to know that the only business model isn’t one that has you pay a low cost up front in favor of big monthly payments tied to a two-year contract.”

Maxcer writes, “The problem I see with AT&T’s plan is that so far — it’s slated to officially debut late this month — it does nothing to share with the consumer the real cost of owning a smartphone. It provides new choices and options, with very little monetary benefit to the consumer. AT&T doesn’t have to call it ‘AT&T Next.’ No, the company should just call it what it is, the ‘You Can Get a New Smartphone Easy If You Just Pay More Every Month Plan.'”

Much more in the full article here.

Related articles:
How interest in AT&T’s new ‘Next’ plan could boost new and old iPhone sales – July 17, 2013
AT&T Mobility unveils fast-upgrade ‘Next’ plan – July 16, 2013