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.
New regulations from October 1 draw outcry from consumers, carriers and manufacturers as they come into force, making high-end phones far more expensive than in the past.
As the Korean cellular market draws closer to saturation point, the drive to win customers through cheap phone deals has gone off the rails.
An expansion of the Internet Essentials program will offer cheap broadband to students who qualify for federal education grants. It's being tested in Colorado and Illinois.
CNET's Marguerite Reardon says the wireless industry is offering more choices for how you buy devices and gives her advice on figuring out what works best for you.