AT&T to Raise Early Termination Fee for iPhone and Other Smartphones to $325

[MacRumors]

The Wall Street Journal reports (subscription required) that as of June 1st, AT&T will nearly double the early termination fee for customers on smartphone contracts such as for the iPhone, going from $175 to $325. The change, which would apply only to new contracts, appears set to come just prior to the launch of a new iPhone.

The iPhone is AT&T's biggest wireless growth driver; however, the company's contract as Apple's sole U.S. partner is expected to end over the next year. The loss of exclusivity could enable iPhone customers--particularly those frustrated by the carrier's network issues--to go to rivals, specifically Verizon Wireless, although high early termination fees could serve as a deterrent.

An AT&T spokesman, however, said the timing of the move wasn't related to any device.

Earlier this week, AT&T Mobility CEO Ralph de la Vega noted that his company does not expect many iPhone customers to jump ship to rival carriers once AT&T loses its exclusivity in the United States. He pointed to data showing that 80% of customers are on family talk or corporate discount plans that serve as a significant barrier to switching. A significantly increased early termination fee would obviously also be a deterrent to switching for those customers signed up to a multi-year contract.

Article Link: AT&T to Raise Early Termination Fee for iPhone and Other Smartphones from $175 to $325

 

[noah82]

This is the biggest pile of crap that I have ever heard! Of course you won't be losing customers...you have us by the balls!

 

[Corruptitudes]

Are they gonna reduce the monthly rate to compensate for higher etfs?

 

[Jaro65]

I bought my current iPhone 3G unlocked, and I will be doing the same with my next iPhone.

 

[interconnect]

AT&T's greed never ceases to amaze me.

 

[tasset]

Ahhh, AT&T you will never change your stripes. Monkey see, monkey do.

 

[Small White Car]

Ha ha. Now we know what he meant by "we don't think people will leave."

Of course, the good news is that this is the most solid fact to-date that supports the Verizon iPhone rumors.

 

[crackbookpro]

Pathetic... That's why I'm on Big Red, and thinkin' about getting a Droid.

I'll wait now...

 

[Vol7ron]

Ha ha. Now we know what he meant by "we don't think people will leave."

Of course, the good news is that this is the most solid fact to-date that supports the Verizon iPhone rumors.

Or some other carrier....I hope for Verizon as they have the best reception in NH, but hopefully they will open it up to all the US carriers. That should stop everyone's complaining

 

[ChazUK]

A multi carrier iPhone in the U.S will be a good thing.

 

[thetexan]

When Verizon did this six months ago, I said AT&T would do it this summer with the new iPhone. Seems I called it.

This is also another indication that AT&T won't be the exclusive carrier for the iPhone.

 

[Xian Zhu Xuande]

I see this as lending evidence to the possibility of a Verizon iPhone. It could be that it is coming soon, or relatively soon (e.g. one year) and AT&T has found, or fears, that many of their customers will jump ship to Verizon without really caring much about a $175 early termination fee—this could be their initiative to proactively stop that by making the jump even more expensive for customers.

Still, I'd rather see a company like AT&T keep customers in by providing the highest quality service, rather than screwing them out of more money if they choose to leave for a better service.

(Not much sweat to me. I hate Verizon.)

 

[nutjob]

It's one of them gouging, probably both. I'd say component costs have gone down for high end phones.

 

[MattG]

Anyway...if this isn't an indication that they're afraid people are going to jump ship once Verizon gets the iPhone, then I don't know what is.

 

[countrydweller]

This is the biggest pile of crap that I have ever heard! Of course you won't be losing customers...you have us by the balls!

I could be gone in a year, this may convince me to take my $300 a month elsewhere. I suppose the others will follow suit though. I'll wait for a while, watching.

 

[crobbins]

While I do feel like this is a pretty significant hike, I was already expecting it. I figured when VZW did it, it would only be a matter of time before AT&T followed...

 

[SSDGUY]

I guess I won't be buying a new iphone after all. I'll wait for Verizon. Of course Verizon's programs are not much better. My friend just bought an Android and is livid at being forced to buy a data plan for his son's smart phone just because he has a data plan for the Android. Not sure of all the details but he's not a happy Verizon customer.

 

[wackymacky]

Pure nasty. Glad I don't have to deal with AT&T in New Zealand.

 

[immunezone]

Now I definitely do not want any part of this! This is Grand Theft!

You know what? F At&t!!

They want blood, they want you for everything you are, like a slave to their crap service. The only reason anyone would even go to at&t is because of the iPhone.

I can't believe this. Forget them now and the iPhone. Will just settle for iPad or iPod Touch because this is a test, I swear. A test to see just how stupid all humans are.

Not here and not me. Take the iPhone and att crap service and shove it up your....... (you know where) punks.

Never again.

 

[aiqw9182]

Verizon iPhone, here I come.

 

[NewSc2]

and a big middle finger to you too AT&T!

 

[NorrisKillsKids]

In Canada it's 400 for everyone, deal with it

 

[Mlrollin91]

It was only a matter of time until it happened. Verizon did it like 6 months ago, and of course AT&T is going to follow.

Except, Verizon is 350.

 

[miketcool]

I still <3 T-mo!!

 

[Small White Car]

But really, it doesn't really change anything for me. I'm smart enough to not pay the $175 fee and I'm certainly not gonna start now that it costs even more.

So, whatever, AT&T. Go ahead and make it $1,000. Or $50. I don't care. If I never pay it then both of those are exactly the same to me.