AT&T looks like it is finally close to getting rid of the old-fashioned two-year contract plan for buying smartphones. A new report, citing a leaked internal document from the wireless carrier, says that AT&T will no longer offer such contracts starting on January 8 for smartphones.

The report from Engadget says that on that date, new and existing AT&T customers will have to pay the full price for a new phone upfront or pay for it using its AT&T Next installment plans. In addition, basic phones and "Quick Messaging Devices" from the carrier will also be under these new purchase options. It's not clear yet if products like tablets and smartwatches will also ditch two-year contracts.

T-Mobile has already done away with two-year contracts for its smartphones, but Sprint still offers them for its products. Verizon customers with current contracts can also choose to continue with that kind of payment plan.

Source: Engadget