AT&T Raising exit fees on smartphones, Timing?

accinfo

macrumors member
Original poster
Jul 12, 2007
50
0
http://online.wsj.com/article/SB10001424052748704852004575258511180204610.html?ru=yahoo&mod=yahoo_hs

Anyone believe this has nothing to do with a new Iphone coming out in June? LOL. Also actions do speak louder then words. It shows me they are prepping for the possibility of losing current subscribers to another carrier. These fees would help mitigate some of those losses. They hope everyone upgrades their 3GS in June to the new 4G, extending their contract for another 2 years with this higher termination fee in place if sometime in a year the Iphone opens up to another carrier.

I have upgraded each version of my iphone but this will most likely make me wait and see if there is any truth to a Verizon phone coming some time in the nearer future.

For people happy with their ATT service I guess it won't matter but for me it does.
 

DakotaGuy

macrumors 68040
Jan 14, 2002
3,993
3,101
South Dakota, USA
http://online.wsj.com/article/SB10001424052748704852004575258511180204610.html?ru=yahoo&mod=yahoo_hs

Anyone believe this has nothing to do with a new Iphone coming out in June? LOL. Also actions do speak louder then words. It shows me they are prepping for the possibility of losing current subscribers to another carrier. These fees would help mitigate some of those losses. They hope everyone upgrades their 3GS in June to the new 4G, extending their contract for another 2 years with this higher termination fee in place if sometime in a year the Iphone opens up to another carrier.

I have upgraded each version of my iphone but this will most likely make me wait and see if there is any truth to a Verizon phone coming some time in the nearer future.

For people happy with their ATT service I guess it won't matter but for me it does.
This is interesting since there were a lot of AT&T fans around here ripping on Verizon when they raised their ETF fee on smartphones. I suppose it is okay now because it's AT&T and not Verizon.
 

OneEyedSpaniel

macrumors newbie
May 21, 2010
17
0
question

http://online.wsj.com/article/SB10001424052748704852004575258511180204610.html?ru=yahoo&mod=yahoo_hs

Anyone believe this has nothing to do with a new Iphone coming out in June? LOL. Also actions do speak louder then words. It shows me they are prepping for the possibility of losing current subscribers to another carrier. These fees would help mitigate some of those losses. They hope everyone upgrades their 3GS in June to the new 4G, extending their contract for another 2 years with this higher termination fee in place if sometime in a year the Iphone opens up to another carrier.

I have upgraded each version of my iphone but this will most likely make me wait and see if there is any truth to a Verizon phone coming some time in the nearer future.

For people happy with their ATT service I guess it won't matter but for me it does.

Well it sounds like does not apply to existing contracts, just contracts started after June 1st so hopefully it will not be a problem for you. I would like to throw a question out there for people who have upgraded their iPhones in the past. Does AT&T allow an early upgrade when the newest version of the iPhone is released or do you have the pay “full price” for the phone?
 

accinfo

macrumors member
Original poster
Jul 12, 2007
50
0
I would like to throw a question out there for people who have upgraded their iPhones in the past. Does AT&T allow an early upgrade when the newest version of the iPhone is released or do you have the pay “full price” for the phone?
Yes they allowed me each year to pay the lower price and extended my contract an additional 2 years. That is why now I say I am not going to rush out and upgrade and play a wait in see approach to see what happens in the fall.
 

jbro1999

macrumors regular
Nov 24, 2009
149
1
This is interesting since there were a lot of AT&T fans around here ripping on Verizon when they raised their ETF fee on smartphones. I suppose it is okay now because it's AT&T and not Verizon.
No it's not OK. It's stupid. This is why I didn't sign a 2 year contract with Verizon again.
 

Geckotek

macrumors G3
Jul 22, 2008
8,543
78
NYC
Very interesting. This has me thinking twice about upgrading and renewing my contract.
 

-aggie-

macrumors P6
Jun 19, 2009
16,793
50
Where bunnies are welcome.
Very interesting. This has me thinking twice about upgrading and renewing my contract.
Why? They’re just doing what VZW is doing, and it seems it only will apply to new contracts (based on what a poster stated above).

Anyway, am I happy they raised it? Not really. Does it matter to me? No, since I wasn’t planning to go to Verizon anyway, since my service is fine. This would mostly matter to those who want the iPhone and have crappy AT&T service. If I had bad service, I’d go to VZW and get the Android (but I wouldn’t come on this site and tell everyone about it).
 

Geckotek

macrumors G3
Jul 22, 2008
8,543
78
NYC
Why? They’re just doing what VZW is doing, and it seems it only will apply to new contracts (based on what a poster stated above).

Anyway, am I happy they raised it? Not really? Does it matter to me? No, since I wasn’t planning to go to Verizon anyway, since my service is fine. This would mostly matter to those who want the iPhone and have crappy AT&T service. If I had bad service, I’d go to VZW and get the Android (but I wouldn’t come on this site and tell everyone about it).
Not to spite them and it's not for the sake of Verion vs AT&T. I was debating getting the 4G on AT&T and then if/when Verizon gets an iPhone later, paying the ETF and moving over. That way despite what happens or doesn't happen, I'm happy w/ my upgraded phone. Exactly what AT&T is trying to prevent. :p

Edit: I would only come on this site to tell everyone about it if I was a long-term regular and wanted to say my goodbye's. I recall making such a post on one of the Palm forums. But I wouldn't create an account just to do it....or even make a post if I was a short-timer w/ little/no posting history.
 

OneEyedSpaniel

macrumors newbie
May 21, 2010
17
0
Yes they allowed me each year to pay the lower price and extended my contract an additional 2 years. That is why now I say I am not going to rush out and upgrade and play a wait in see approach to see what happens in the fall.
Thanks for the info. I feel in a predicament like most people I'm sure. There are a lot of problems with AT&T, despite them I really don't plan on changing. Plus the 19% corporate discount I currently get doesn't hurt.
 

kicko

macrumors 65816
Aug 26, 2008
1,095
0
This is not really shocking. If you sign up for 2 years, then do your time or pay up. Devices are getting more expensive, more people try to sign up for services and quit after 30 days just to sell a phone (unlocked or not) on ebay for $500+. All AT&T is doing is pugin' a hole in a place where they need to protect revenue.

What i would rather see is someone like AT&T let you but an unsubsidized device and since you paid upfront for it give you a discounted rate plan since they are not recouping money on a promotional price.

no more contract problems win - win
 

Applejuiced

macrumors Westmere
Apr 16, 2008
40,650
6,404
At the iPhone hacks section.
What i would rather see is someone like AT&T let you but an unsubsidized device and since you paid upfront for it give you a discounted rate plan since they are not recouping money on a promotional price.

no more contract problems win - win
Amen to that.
I think Tmobile has something similar like it where the plans are about $10 or so less than contract plans.
 

mgamber

macrumors 6502a
Jun 12, 2008
816
0
1966
I wonder how long it will be before someone argues that it constitutes a policy change and lets people leave without paying any ETF at all? Poetic justice. :D

I don't really care. My contract is up in July (I bought an unsubsidized device last year), AT&T sucks around here and Apple meting out minimal updates every time the masses start to grumble doesn't cut it anymore. Plus I bought a real "iPhone killer", an iPad, and I can buy any phone I want on any carrier. If AT&T and Apple want to half-ass it again this year, it'll suck to be them for a change.
 

Geckotek

macrumors G3
Jul 22, 2008
8,543
78
NYC
This is not really shocking. If you sign up for 2 years, then do your time or pay up. Devices are getting more expensive, more people try to sign up for services and quit after 30 days just to sell a phone (unlocked or not) on ebay for $500+. All AT&T is doing is pugin' a hole in a place where they need to protect revenue.

What i would rather see is someone like AT&T let you but an unsubsidized device and since you paid upfront for it give you a discounted rate plan since they are not recouping money on a promotional price.

no more contract problems win - win
Your argument is valid only if they actually subsidize more of the price. AFAIK, most smartphones carry the same subsidy as feature phones. I believe the iPhone is the only exception.

Agreed on the unsubsidized phones. I'd rather pay more for my device and pay less on my plan. This subsidy mess is exactly that...a mess. Always has been, since I started in wireless way back in '90.
 

xcrunner

macrumors regular
Dec 17, 2007
186
0
That does suck but wasnt planning on leaving AT&T anyway. It will suck more and be more expensive to people that tend to switch carriers alot or cancel early.
So you're not getting the new iPhone? Upgrading is a new contract you will get the new ETF the next time you upgrade.
 

F123D

macrumors 68040
Sep 16, 2008
3,775
16
Del Mar, CA
So you're not getting the new iPhone? Upgrading is a new contract you will get the new ETF the next time you upgrade.
But the ETF won't effect you unless you cancel service which they aren't planning on doing. Won't effect me either since I'd never switch to Verizon.
 

Geckotek

macrumors G3
Jul 22, 2008
8,543
78
NYC
But the ETF won't effect you unless you cancel service which they aren't planning on doing. Won't effect me either since I'd never switch to Verizon.
What if you want to switch to Google? I hear rolling out a wireless service is their next step toward world domination. :p
 

hexonxonx

macrumors 601
Jul 4, 2007
4,610
1
Denver Colorado
That does suck but wasnt planning on leaving AT&T anyway. It will suck more and be more expensive to people that tend to switch carriers alot or cancel early.
It will especially suck for those people intending on buying the iPhone and then canceling service after the 30 days is over. I don't blame AT&T in away for trying to stop this.
 

F123D

macrumors 68040
Sep 16, 2008
3,775
16
Del Mar, CA
It will especially suck for those people intending on buying the iPhone and then canceling service after the 30 days is over. I don't blame AT&T in away for trying to stop this.
They all have a nice systems in place for anyone who tries to leave them early. Anyone know of any perks for customers who have been loyal and stayed with a company for many years? I know people with jobs/schools that get discounts which is great.
 

Geckotek

macrumors G3
Jul 22, 2008
8,543
78
NYC
Here's how it should be:

When you buy a new phone you get 2 options:
1) Pay full price for the phone and pay a rate that is lower than current rates.
2) Pay a discounted price for the phone. The amount of the discount is amortized over the life of the contract in the form of an added monthly fee on your contract. Perhaps the fee is slightly higher...finance charges. Once paid off, the fee drops off. If you cancel early, whatever remains of that amortized amount is your ETF. And the phone is unlocked once you complete the contract or pay the ETF.

This seems fair to me.
 

uneek1

macrumors regular
Jun 18, 2009
180
0
Didn't the FCC get involved when Verizon tried to hike up their smartphones? I thought they were shut down on raising their ETF too high.

If so, shouldn't the same thing happen to ATT?
 

Geckotek

macrumors G3
Jul 22, 2008
8,543
78
NYC
Didn't the FCC get involved when Verizon tried to hike up their smartphones? I thought they were shut down on raising their ETF too high.

If so, shouldn't the same thing happen to ATT?
Yup. Both should be forced to adopt a program that CLEARLY reflects the subsidy of the phone. (Like the one I outlined above.)

I don't have a problem w/ a $325 ETF if I know for a fact that's the amount of the subsidy AT&T gave me for the phone. Also, it needs to be prorated so that it's value is $0 by the end of the contract.
 

NintendoFan

macrumors 6502
Apr 14, 2006
252
17
Massachusetts
Yup. Both should be forced to adopt a program that CLEARLY reflects the subsidy of the phone. (Like the one I outlined above.)

I don't have a problem w/ a $325 ETF if I know for a fact that's the amount of the subsidy AT&T gave me for the phone. Also, it needs to be prorated so that it's value is $0 by the end of the contract.
For customers who enter into new two-year service agreements in connection with the purchase of our more advanced, higher end devices, including netbooks and smartphones, the ETF will increase to $325, and be reduced by $10 for each month that you remain with us as a customer during the balance of your two-year service agreement. After that, the ETF will no longer apply.
http://www.att.com/gen/press-room?pid=17951
 

OutlawImmortal

macrumors regular
May 14, 2010
198
0
Hills of Eastern Kentucky
Well it sounds like does not apply to existing contracts, just contracts started after June 1st so hopefully it will not be a problem for you. I would like to throw a question out there for people who have upgraded their iPhones in the past. Does AT&T allow an early upgrade when the newest version of the iPhone is released or do you have the pay “full price” for the phone?


Seems like everyone is getting an early iphone upgrade according to my upgrade options, a couple of months ago I added a line for my mom and even that line can get an early iphone upgrade.