re: Rumor: AT&T will end two-year contracts at the end of May

You are financing the phone on either plan because the days of phone companies subsidizing phones is over since they cost too much to justify that business model anymore. It was one thing when Nokias were the rage and they cost the companies like $150 to give away. You can make $150 back quickly. Not so much $800.

The difference in the two years vs the Next is you have more options on the Next plan. You can upgrade even before your Next plan is up if you pay off the current phone with a balloon payment.