AT&T is kicking contracts to the curb nationwide with new prepaid wireless service plans dubbed "Aio" that will be offered as an alternative to its more traditional contract plans.

The Aio plans, which were first tested this year in Atlanta, Florida, and Texas, roll out across the U.S. next month.

AT&T Aio features three plans ranging from $40 to $70, and all include unlimited talk, text and data.

For added incentive new subscribers who sign up before Sept. 29 get a free month of service.

The scarlet logo

T-Mobile boosted its own no-contract business when it acquired MetroPCS last year, and AT&T is clearly following its rival carrier's example.

But that's not even the reason for their current spat in court.

According to CNET, T-Mobile sued AT&T in federal court this week for alleged trademark infringement relating to the color magenta.

The pink-ish branding AT&T uses for its Aio services is too close in shade to T-Mobile's traditional color, the latter claims.

Clearly that has nothing to do with the fact that AT&T is revving its engines to blast full-force into the prepaid market. Clearly.

As long as AT&T is up for legislation, though, maybe Asus should consider standing up for its Transformer AiO tablets and following suit?