AT&T claims less customers are opting to purchase subsidized phones

Installment plans for cellphones are starting to squeeze out the time-honored practice of paying a subsidized price up front, AT&T says. Buying installments is catching on in a big way, according to AT&T’s first-quarter financial results Tuesday. About 2.9 million people signed up for the carrier’s Next plan, in which subscribers pay for a phone in monthly installments and can trade it in for a new model after a year. That was more than 40 percent of AT&T’s postpaid customer additions or upgrades for the quarter.