This means that new and existing customers will only be able to get new phones by paying the full price upfront or paying in installments over time. If you want to get an iPhone on AT&T with a subsidy you need to act fast.
In June, AT&T stopped offering subsidized contracts to customers through dealers and partners like Best Buy and Apple; however, you could go to an AT&T store directly for a contract.
Here are the details from AT&T's internal document:
Effect January 8, 2016, AT&T will launch a pricing simplification effort for device purchase options and pricing plans across all channels..
Simplify Device Purchase Options:
● AT&T Next and no-commitment (full-retail price) will become the only smartphone purchase options available for new and existing Consumer, standard Individual Responsibility Users (IRU).
● AT&T will introduce installment plans for Quick Messaging devices (QMD) and Basic devices. Installment plans and no-commitment (full-retail price) will become the only purchase option for new and existing Consumer, standard Individual Responsibility Users (IRU).
Check out the FAQ document below for more details...