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In a radical shift, the company will only offer new plans that require customers to pay for their own smartphones. Also, device access fees and buckets of data remain.
AT&T is in the process of eliminating service contracts and subsidies for its retail partners. But they will still be available at AT&T stores.
Retailers have been caught secretly offering the iPhone 6 to customers with illegally high subsidies and the Korean government has promised to take action.
The new option, which spreads the payments over a longer period of time, will be available on November 9.
The struggling carrier's monthly phone payment plan and new phone leasing program are starting to gain momentum.
A government cap on carrier subsidies caused a steep decline in phone sales, although there are some signs of recovery as low-cost monthly plans and used phone sales are on the rise.
Wireless reseller US Mobile intended to sell phones from one of the world's hottest startups, but had to pull back. Why?
In this edition of Ask Maggie, CNET's Marguerite Reardon offers advice about getting a great value from buying an older used model of the popular iPhone.
A complaint with the FCC accuses the "Uncarrier" of adding unauthorized charges to customer bills and deceptive advertising practices.
The Galaxy S7 could be the first phone to be offered via the new program, says Korea's Electronic Times.