The carrier received a lot of backlash from the media on releasing a program that was a bad deal for customers, and T-Mobile even launched an ad campaign surrounding AT&T Next.
The iPhone 5 was previously available for $32.50 per month for 12 months, but has now been reduced to $27 per month. With this new pricing model, the iPhone 5 would be $1 cheaper going with AT&T compared to Verizon's 'Edge' program.
Even with the pricing changes, AT&T and Verizon's plan is not necessarily a good deal.
Assuming that $20 of AT&T's monthly service fees go toward recouping the carrier's handset subsidy, a customer looking to upgrade after 12 months would have paid $324 in device payments on a 16 GB iPhone 5 and $240 from monthly service fees, yielding total payments of $564 for the $650 device, although they also have to turn in the device to AT&T.
With the new pricing models, an iPhone 5 would cost you $564 on AT&T, $565 on Verizon, and $518 on T-Mobile (using their new smartphone upgrade plans -- Next, Edge and Jump).