AT&T appears to have a hit on its hands with its new Next upgrade program. It had 2.9 million Next smartphone sales in the first quarter, accounting for 40 percent of the smartphones it sold or upgraded. And despite the fact the program only launched in July, AT&T upgraded 1.1 million customers to new devices in the quarter, letting them take advantage of accelerated payment programs or other promotions. As we’ve argued in the past, upgrade programs aren’t quite the deals that carriers make them out to be.

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