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AT&T typically structures these offers using rather than an immediate point-of-sale discount.

If you cancel service on either line before the 36 months are up, the remaining balance on the "free" phone becomes due immediately.

AT&T applies a monthly credit to your bill over the course of the 36-month installment period (e.g., $20–$30/month) until the second device is effectively paid off. Important Terms and Conditions

Many of these deep-discount bundles, such as the AT&T OneConnect bundle that combines fiber and wireless, are often reserved for new customers.