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It says on the back of my receipt that if you cancel your service within the 30 days without returning the device, you are charged the difference of the full price. There is no early termination fee but you are required to pay the unsubsidized price of the phone. So, if you bought the 16GB for $199, then canceled your contract but kept the phone, you would be charged the remaining $400.

That's exactly right. There is no scamming a company the size of AT&T people... :)
 
You guys should be happy. In Canada on Rogers we have cancellation fees of $400 for voice and $100 for data (maybe $200 now?), along with Bell & Telus up to $700+ ($20/month with no max and more for data).

Nexus One on Vodafone Australia:
Early termination fee: $79 AUD ($69 USD) x months left on contract

;)
 
I would call and make sure there isn't a hidden clause that requires you to pay the ETF and the remaining price of the phone after the 30 days. They're really just being nice in allowing people to cancel their agreement within 30 days. It's not meant to be a loophole or a way to scam the system.

I thought I'd clear up this rather seemingly-confusing clause with you all and bring an update for those who would like to use the information. I've called both Apple and AT&T Wireless, so what I'm saying is completely confirmed by both holdings. Here it is:

For easy reference, I'll refer to the iPhone 4 as a 16GB model ($199). If you wish to know the details for the 32GB, just add a hundred bucks to the final figure and account for the taxes. Fees should be congruent (for both).

Option A: Buy from retailer at $199. Cancel service immediately to within 30 days, and return the device. No costs. AT&T may charge for voice, data, text used. (Monthly_Bill+Fees)

Option B: Buy from retailer at $199. Want to keep device, but without AT&T monthly service as a contract? Pay the remaining $400 since the $199 is AT&T's subsidized price. iPhone 4 retails for $599. Keep the device and use non-phone features on WiFi. [Optional Additional Info: FaceTime does not work without a cellular provider/carrier despite running on WiFi. Nor does it work on unsupported carriers like T-Mobile] - Total - $599+Tax

Option C: Buy from retailer at $199. Use for one month (equivalent to 30/31 days). Cancel the service, but you will be required to pay for your month's usage time and the iPhone 4 as a retail. So despite having used this for a month, you're still not eligible for ETF until the end of the second month. - Total - $599+Tax+Monthly_Bill+Fees

Option D: Buy from retailer at $199. Use for two months. Cancel the service now and you are eligible to keep the iP4 at $199, but are required to pay the termination fee (ETF). The month's worth of usage is an acquainted $10 off of the original ETF of $325. Total - $199+Tax+2_Monthly_Bills+2_Fees+ETF-Deducted*

* Clarification for that last bit on Option D - ETF = $325. You have technically used the phone for 2 months, but AT&T only counts the second one as a month to be eligible as a deductible of $10 off of the ETF. This means that their so-called one month ($10) off of the $325 becomes $315 for the ETF-Deducted, which is marked at the end of the formula above for option D... not that the $10 off would make a huge difference, but just my knowledge of informing on here.

So there you have it.... for all of you out there who could possibly use this information and to clear up this issue.
 
I thought I'd clear up this rather seemingly-confusing clause with you all and bring an update for those who would like to use the information. I've called both Apple and AT&T Wireless, so what I'm saying is completely confirmed by both holdings. Here it is:

For easy reference, I'll refer to the iPhone 4 as a 16GB model ($199). If you wish to know the details for the 32GB, just add a hundred bucks to the final figure and account for the taxes. Fees should be congruent (for both).

Option A: Buy from retailer at $199. Cancel service immediately to within 30 days, and return the device. No costs. AT&T may charge for voice, data, text used. (Monthly_Bill+Fees)

Option B: Buy from retailer at $199. Want to keep device, but without AT&T monthly service as a contract? Pay the remaining $400 since the $199 is AT&T's subsidized price. iPhone 4 retails for $599. Keep the device and use non-phone features on WiFi. [Optional Additional Info: FaceTime does not work without a cellular provider/carrier despite running on WiFi. Nor does it work on unsupported carriers like T-Mobile] - Total - $599+Tax

Option C: Buy from retailer at $199. Use for one month (equivalent to 30/31 days). Cancel the service, but you will be required to pay for your month's usage time and the iPhone 4 as a retail. So despite having used this for a month, you're still not eligible for ETF until the end of the second month. - Total - $599+Tax+Monthly_Bill+Fees

Option D: Buy from retailer at $199. Use for two months. Cancel the service now and you are eligible to keep the iP4 at $199, but are required to pay the termination fee (ETF). The month's worth of usage is an acquainted $10 off of the original ETF of $325. Total - $199+Tax+2_Monthly_Bills+2_Fees+ETF-Deducted*

* Clarification for that last bit on Option D - ETF = $325. You have technically used the phone for 2 months, but AT&T only counts the second one as a month to be eligible as a deductible of $10 off of the ETF. This means that their so-called one month ($10) off of the $325 becomes $315 for the ETF-Deducted, which is marked at the end of the formula above for option D... not that the $10 off would make a huge difference, but just my knowledge of informing on here.

So there you have it.... for all of you out there who could possibly use this information and to clear up this issue.



Thanks for the write up and your time. Can you explain option D. Why is it that if I cancel on day 31, I still have to pay for the 2nd month? Doesn't it get prorated? Why is it that I am not eligible for ETF?

Based on what I have read, you pay $199 + 1st months bill + (maybe prorated month 2 bill) + ETF $325 if you cancel on day 31.
 
Thanks for the write up and your time. Can you explain option D. Why is it that if I cancel on day 31, I still have to pay for the 2nd month? Doesn't it get prorated? Why is it that I am not eligible for ETF?

Based on what I have read, you pay $199 + 1st months bill + (maybe prorated month 2 bill) + ETF $325 if you cancel on day 31.

You're most welcome. With regards to the ETF ineligibility, I was told that the reason for why the first month does not qualify for the ETF is because AT&T wouldn't want the cancellation of the contract after 30 days to equal the retail price or else AT&T wouldn't profit from the ETF and the subsidized price. It actually profits from the retail price. So they follow up on that option. Although if such is as you have read, you may be able to talk to AT&T to see if you can do it that way, but from what I know, it's seemingly impossible to get around their policies. It's almost like they've cleaned up all the loopholes.
 
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