AT&T Inc customers will be able to upgrade their phones once a year instead of waiting two years. AT&T is defending itself against challenges from T-Mobile US . AT&T’s latest offering, does not require upfront device fees, comes as the No. 2 U.S. mobile provider strives to regain the market share it has been losing to market leader Verizon Wireless, and to fight back against tougher competition from smaller rivals like fourth-ranked T-Mobile US. AT&T’s offer, soon to be available on July 26, appeared to be a direct response to T-Mobile’s announcement last week that its customers can now upgrade smartphones as often as twice a year. AT&T will charge customers $15 to $50 per month, depending on the device, on top of monthly service fees under the new offering, which does not require a long-term service contract. By excluding upfront device fees in its plan, AT&T is hoping to compete with T-Mobile US, which still requires an upfront payment. T-Mobile US Chief Marketing Officer Mark Sievert says the monthly phone installments is a “trick” to get more money out of customers because it is not changing its monthly service fees. “If you’re going to charge separately for the phone like they’re doing then you need to reduce the price of the service. Otherwise you’re paying twice for the same phone.” According to data reported a Wall Street Journal article, Americans are upgrading their devices less often as innovation slows and current smartphones are more than adequate for their needs.
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