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

[Plutonius]

No Verizon Phone Coming

Am I the only one that thinks this more so indicates Verizon may get the iPhone next year?

Think about it, if Apple announces a Verizon iPhone this year, people who plan to switch simply can let their contract run out and get the Verizon one. By changing the ETF starting with the release of the upcoming phone, they can really retain a lot of customers if a Verizon phone comes out next year.

I do not believe a new Verizon Phone is coming. Like others have said, the increased amount for early termination could just be there to cover the increased cost (subsidized cost) that AT+T has to pay. It could also be there to prevent people from jumping ship to the Droid.

 

[calderone]

what did you expect? to loose money making your phone cheaper for you just to leave the next day?

Apparently.

 

[JediZenMaster]

Am I the only one that thinks this more so indicates Verizon may get the iPhone next year?

Maybe or maybe not. AT&T and Verizon usually mimic each other, For example when Verizon lowered the unlimited plan to 69.99 That same week AT&T did the same thing too.

If i remember correctly and AT&T first started requiring smartphone plans on all data devices. Verizon started requiring the same thing.

So it could maybe they feel that since verizon charges 350 they can charge 325 for an ETF.

The thing is with the whole iPhone/Verizon debacle is that any little thing people will pick it up and run with it and swear it means Verizon is getting the iPhone.

It's almost like i could take the box for my iPhone down to the verizon store and snap a picture of it. Send it to Gizmodo and they would most likely say it was the next iphone

 

[125037]

If your a business customer (FAN account) you have nothing to worry about as our cancellation fees are waived.

 

[theelysium]

Early Term Nexus One - %550

"In a move that’s sure to bring a smile to its accounting department’s face, AT&T will be raising the fee it charges smartphone customers for early contract termination from US$175 up to $325. The new early termination fee will go into effect on June 1, ahead of Apple’s expected next generation iPhone launch, although AT&T claims the timing is coincidence, according to the Wall Street Journal.

AT&T’s decision to dramatically increase smartphone contract early termination fees falls in line with Verizon’s similar fee jump. In November 2009, Verizon increased its early termination fee from $175 up to $350.

T-Mobile and Google gave Nexus One smartphone owners a shock when they announced early termination fees that totalled $550 — more than the cost of the phone.

For its part, AT&T sees the steep exit cost as reasonable since it pays subsidies to companies like Apple to keep smartphone costs down. An AT&T spokesman called the price hike a “fair approach.”

Industry analysts have been speculating that AT&T’s deal with Apple as the exclusive iPhone partner in the U.S. is coming to an end soon, and that Verizon will get to sell the combination iPod and smartphone in the near future as well. Apple executives, however, have said they are happy with AT&T and haven’t hinted that Verizon will be selling iPhones soon

Since Verizon uses wireless technology that isn’t compatible with the iPhone, Apple would need to make a special version of the device just for the company, and Apple isn’t saying whether or not it wants to make that kind of financial investment. With new 4G network technologies that both AT&T and Verizon will support rolling out over the next couple of years, Apple may wait to bring additional U.S. carriers on board.

As always, Apple is staying tight-lipped about its plans. AT&T’s new early termination fees, however, may leave customers with plenty to say."

Look at this article, T-Mobile charges $550 early term on Nexus One.

At least AT&T and VW are not going to that extreme.

Here are some prices of popular phones:

HTC Droid Incredible (Verizon Wireless) $599
RIM BlackBerry Bold 9700 (T-Mobile) $484
HTC Evo 4G - black (Sprint) Can't find any non contract prices, but should be around $599
Palm Pre Plus (Verizon) $629
Apple iPhone 3GS - 32GB - black (AT&T) $699
HTC Nexus One (T-Mobile) $649

They have every reason to charge $325 early term fee for these phones. Their are crazy expensive.

 

[moynihan123]

Gotta love the oligopoly that is the wireless industry in America.

 

[JediZenMaster]

If your a business customer (FAN account) you have nothing to worry about as our cancellation fees are waived.

What? I Get my fan discount thru my employer (AT&T Wireline) and a FAN does not exempt you from an ETF.

 

[Plutonius]

Yes, Verizon is def a big and greedy company that much is for sure. However, between Derry, Londonderry, and Chester (where I spend a considerable portion of time) the service for AT&T is horrible as noted by my friend who owns an iPhone. I can't speak much for T-Mobile, but i know of no one who uses them up in my area. Sprint is going down the tubes and is having massive issues, and Verizon is really the only carrier who has decent signal. Perhaps if MetroPCS had better coverage up in NH i would switch over to them.

Either way, just about *any* company out there exists to make a buck off you and screw you in the process. There are some exceptions and some companies do care, but it is a rare thing...

I have T-Mobile and I get good reception in Derry and Londonderry (no idea how it works in Chester). I would use 2 tin cans with wire rather than using anything from Verizon .

 

[kyleh613]

Cellphone companies in the U.S. seriously need to be forced into providing month to month cell phone plans. The rest of the world has this, the U.S. is the only one that doesn't. It's total crap.

 

[cvaldes]

I think this pretty much confirms Verizon is getting the iPhone...and maybe a different model?

AT & T are clearly threatened.

Also I believe this to be against the law. If you signed up with a specific early termination fee in your contract, it should not be raised during the length of your contract...

While this could indicate that AT&T lost their exclusivity on the iPhone (despite the fact that the ETF has been increased on all smartphones, not just the iPhone), this does not imply that Verizon will be imminently receiving the iPhone.

There are two main reasons that I can see: A.) there has been no hiring surge of CDMA engineers by Apple, and B.) the recent chattiness about iPhones from Verizon execs (and assorted Verizon rumors, most of them utterly absurd) is unusual. Typically, Apple partners tend to clam up real tight when there's a deal in the works. This has definitely not been the case with Verizon.

If AT&T were to lose iPhone exclusivity, the most logical step would be for Apple to release the handset to T-Mobile USA, another GSM carrier. The only physical change would be to include a 3G chip that supports the AWS band (1700MHz). The iPhone itself already works fine on T-Mobile's GSM network (for voice) and EDGE.

It's worth nothing that T-Mobile USA has basically fallen completely silent concerning the iPhone in recent months. Perhaps it's just coincidence, but without a doubt by shutting their mouths T-Mobile USA is behaving far more like an imminent Apple partner than Verizon is.

 

[rwilliams]

Thats how I got out of my Sprint contract a year early. They raised a fee by 50 cents mid contract.

Then I'm praying to God that they raise the fee again in the next month so I can get out of my contract for free to buy the iPhone.

 

[theelysium]

Um, yes. We don't like it. And yes, we will not buy the phone. And yes, we will continue to complain about exorbitant fees.

Would you feel better if Oboma provided you with a phone to use? Government ran OS with Government AP feeding you more BS so you live like a little liberal zombies?

Less choice and more control of the little things in life means less freedom. I'd rather have the option to not choice an early term fee then to be provided a crappy product(s) without a term fee as stipulated by the control you wish corporations had regulating them.

Cell companies have the fees so they can provide us the technology goodies we desire. Without the early term fees we would be suck choosing between different colored Jitterbugs!

The FCC regulates these fees if they felt they were not warranted by the market or if the fees negatively effected consumers they would not allow them.

Obviously the people with the brains know more then those who are uninformed or half informed.

 

[(L)]

My 2 year contract is up. If a competitor can match or almost match ($5 more is OK) my monthly bill with at&t (or even beat it!) I'm gone. AT&T basically just sits around scheming how to rework the numbers so that customers pay more. When the 3G iphone came out, they lowered the initial cost in order to raise monthly payments. Now, when they see exclusivity going out the window, they raise the ETF. They go about things in an essentially criminal manner - "how can we get more for less from people who are unwilling?" Far cry from Google's "don't be evil."

I strongly encourage all those who would feel deterred by the increase in the termination fee to TERMINATE ANYWAY if you lean that way. For one thing, if you look at the long run, you might even save money, esp. when considering that AT&T institutes the above kind of price hike when upgrades come up. More importantly, AT&T is like the North Korea of cell phone carriers. They make it clear they're not your friend, every obnoxious time they have the chance.

 

[15danielp]

Hey.. FCC.. get of your fat lazy ass and fix the cellular industry.

Thats what I was thinking.

 

[rjohnstone]

Cellphone companies in the U.S. seriously need to be forced into providing month to month cell phone plans. The rest of the world has this, the U.S. is the only one that doesn't. It's total crap.

We have those... it's called a GoPhone plan... you pay full price for the phone.

There are also regional providers who do month to month as well.

 

[theelysium]

Correction

I posted earlier that the Mac Rumors thread seemed to just indicate iPhones.... on my first read it seemed vague.

But, after doing some research I have to correct myself and state that it is all smart phones from AT&T.

 

[mdriftmeyer]

Sorry but I love your title

"Amayzed at the stupidity demonstrated in this thread. "

LOL I'm pretty "Amayzed" at how stupid people can be to!!

If I had to guess I would say that even if V gets an iphone it will be delayed. Thats good for AT&T bc all of the new customers will be locked in for 2 years. This is all about the Iphone!

Ignorance trumps spelling errors.

 

[Phil A.]

Cellphone companies in the U.S. seriously need to be forced into providing month to month cell phone plans. The rest of the world has this, the U.S. is the only one that doesn't. It's total crap.

Yeah, we do have month to month contracts in the UK, but we also don't have the concept of an "Early Termination Fee" - if you sign up to a 2 year contract to get a subsidised phone (there are no subsidised phones on month to month contracts), then you pay that contract for the whole two years. If you want to leave early, you pay the balance of the contract (i.e. if you're 1 year in on a £35 per month contract you pay 12 x £35 for the remaining months, and if you're 1 month in you pay 23 x £35). IMO, this is how it should be - if you sign a contract you should be prepared to honour it and the cellular companies have a right to expect the income from that contract.

 

[kyleh613]

Obviously the people with the brains know more then those who are uninformed or half informed.

This coming from a half wit who used an Obama analogy (an incorrect one at that). Are you for real?

Either way, congratulations, you are a ****ing moron. None of this has anything to do with why cellphone companies force termination fee's on you, or 2 year contracts.

And the FCC doesn't regulate ****, because the cellphone companies pay vast amounts of money to make sure they don't. In the end of the day it is all about making as much money as possible.

 

[kyleh613]

We have those... it's called a GoPhone plan... you pay full price for the phone.

There are also regional providers who do month to month as well.

Yeah and your options for what phones you get on these plans is total crap. Can you even get a data plan like this currently? In other parts of the world you can. You can't get a iphone or android phone on a GoPhone plan as far as I know.

 

[doctor-don]

Right!

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

And if you believe that, I have some Gulf coast property for sale.

Sounds like AT&T has taken a page from the banking / credit card companies' playbook: soak the customer for whatever you can get. AirHeads! Whatever happened to the customer being the reason a company succeeded in business?

 

[calderone]

I posted earlier that the Mac Rumors thread seemed to just indicate iPhones.... on my first read it seemed vague.

But, after doing some research I have to correct myself and state that it is all smart phones from AT&T.

I can see how this wouldn't be clear:

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

 

[samab]

Cellphone companies in the U.S. seriously need to be forced into providing month to month cell phone plans. The rest of the world has this, the U.S. is the only one that doesn't. It's total crap.

The rest of the world doesn't even have ETF, let alone pro-rated ETF.

In the UK, you have to pay off the rest of the 3G iphone contract --- in order just to upgrade to the 3GS iphone.

 

[bludodge]

So let me get this right, it is only for NEW customers. And so now you are mad so you will wait until your current contract expires and "jump ship" to Verizon (if they get it, and this does seem to support that) you would then be Verizon's "new" customer, and have a higher fee for jumping ship? I just don't get it, who changes their carriers on a whim? This is crazy. AT&T only doing what others are doing, and doing it for less. At least it is retro to current customers. Only then I could see you having a reason or voting Negative. More Negative votes than Posters. I am guessing people read the header, voted and moved on to the next story. Right or wrong, surely you can at least understand why they are trying to make the customers stay.

 

[cvaldes]

Cellphone companies in the U.S. seriously need to be forced into providing month to month cell phone plans. The rest of the world has this, the U.S. is the only one that doesn't. It's total crap.

I thought Sprint had this. I know T-Mobile USA has a contractless prepaid rate.

Much of the rest of the world is used to paying full retail for phones and not having the handset subsidized by a long-term contract.