AT&T will make significant changes to its smartphone purchasing plan, offering a simpler but upgraded experience.

Starting on June 9, the American mobile wireless company will now offer two options in their payment program instead of four choices. However, they will add new ways to lower the subscriber’s monthly payment.

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Dubbed AT&T Next Every Year and AT&T Next, the plans are an attempt to simplify the carrier's lineup of Next installment plans. As its name suggests, Next Every Year allows users to upgrade to a new device every year while Next offers upgrade eligibility after two years.

The first option is AT&T Next Every Year where users have 24 months to pay off the phone. They are eligible to upgrade to a new phone after making 12 monthly payments or paid off half of the retail cost of the phone. As part of the plan, they also have to trade in an eligible device.

The second plan is called AT&T Next where users have 30 months to pay off the cost of a phone. They can upgrade to a new phone after making 24 monthly payments or paid off 80 percent of the phone. With AT&T Next, users also have to trade in an eligible device.

In addition, customers who want to pay off their phone sooner than the plans provide will be able to make extra payments on top of the regular monthly installments. Both new plans also allow for a 30 percent down payment, which will reduce the monthly cost. AT&T says that a $749 phone will cost $25 per month on Next and $31.25 on Next Every Year. Also, AT&T charges a $20 one-time "activation fee" for customers that sign up for Next plans.

AT&T hopes that by reducing the number of Next financing options, it will lessen any confusion and make selecting a plan much easier for its customers.

TagsAT&T, smartphone plans, phone financing plans, AT&T Next, AT&T Next Every Year