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AT&T to eliminate smartphone contracts

This Wednesday, May 14, 2014 photo shows an AT&T store in Dedham, Mass. (AP Photo/Steven Senne)

AT&T is the last major carrier offering two-year cellphone contracts, but that will end in the new year.

AT&T announced it will stop offering new contracts beginning January 8.

Instead of a contract, customers buying a new smartphone will pay for the devices over the course of time.

AT&T said a majority of its customers already opt for that payment plan saying, getting rid of contracts will actually make your monthly plan cheaper.

Sprint and Verizon both stopped offering new contracts back in August and T-Mobile did away with contracts back in 2013.

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