AT&T Inc. (NYSE: T) has decided to offer Amazon.com Inc.’s (NASDAQ: AMZN) Fire phone for “$0 down.” It is not clear whether AT&T has an oversupply of the smartphones, cannot sell them any other way or has decided that the Fire is a good way to draw customers for its subscription packages.

The “$0 down” claim may be a little misleading. It is a “limited time offer,” although AT&T does not say what that time limit is. And in addition to the “$0 down,” the AT&T program has a number of charges. People who want the Fire either have to sign up for a two-year plan or its “Next Installment Plan,” or they can buy the phone outright for $649.99. The installment plan costs $32.50 a month. And its terms are astonishingly complex:

* Savings: Compares Mobile Share Value plan pricing for smartphone line on no annual service contract (AT&T NextSM, bring your own, pay full price, or month-to-month) to one on a 2 year agreement. The discount/savings will be $25 per smartphone line on plans 10 GB and higher, and $15 for plans less than 10 GB. Customers with smartphones on 2-yr agreements prior to 2/2/14 on a 10 GB or higher plan or prior to 3/9/14 for 2 GB to 6 GB plans are also eligible for this savings. If upgrading to a smartphone on a 2 year wireless contract you are no longer eligible for the discount. To receive this monthly discount, upgrade with AT&T NextSM, bring your own smartphone, or pay full price for your new smartphone.
** Requires 20- or 24-month 0% APR installment agreement and qualifying credit. Sales tax due at sale. Qualified wireless service plan (voice and data) required. If you cancel wireless service, remaining device balance is due. Qualifying smartphones only; excludes tablets. Limit 4 financed devices (including devices financed via AT&T Next or other installment agreement) per wireless account. Select locations only. If financed smartphone is returned or exchanged within 14 days, restocking fee up to $35 may apply. Upgrade after 12 or 18 months: Requires minimum 12 or 18 monthly installment payments and account in good standing, plus trade-in of currently-financed device in good and functional condition, and purchase of new qualified device with wireless service plan. After upgrade, remaining unbilled installment payments are waived.

The Amazon Fire offer may be “$0 down.” After that, it gets expensive.

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