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Out of contract upgrade

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I've met my current contract obligation and have been with AT&T since the days of SunCom back in 2000. So a 14 year customer. I decided to look into upgrading my current iPhone to a 16gb iPhone 5s or iPhone 6plus. Why in the world is the iPhone 5s 16g upgrade with a new 2 year service agreement $349 ?!?! I'm seriously considering switching carriers. Obviously not just for this reason.

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