Here's something I found browsing the web....
Seems like AT&T loves being involved in ETF fiascos.
Seems like AT&T loves being involved in ETF fiascos.
Got a tip for us?
Let us know
Become a MacRumors Supporter for $50/year with no ads, ability to filter front page stories, and private forums.
AT&T to Raise Early Termination Fee for iPhone and Other Smartphones to $325
- Thread starter MacRumors
- Start date
- Sort by reaction score
I believe that you sign a new contract when you upgrade your phone. So getting the new iPhone will lock you in to the raised fee.
I was on the fence, but this little stunt might have sent me heading for the door. I just got a 3G iPad that has most of the features that I enjoyed using on my iPhone, so I am just going to cancel my contract in June and get a phone on a pay as you go plan.
AT&T is free to follow whatever business model it pleases, but I am also free to vote with my feet. Let's see how they're going to screw up our iPad data plan now.
Jude
AT&T is free to follow whatever business model it pleases, but I am also free to vote with my feet. Let's see how they're going to screw up our iPad data plan now.
Jude
As many of the more rational posters have already stated, there's absolutely nothing wrong or unreasonable about a $325, $350 (or $400, for that matter) declining balance ETF. It's just the subsidy amortized over the 24 month contract period, plus a small fee (if you want to bitch about anything, bitch about the small fee or the amortization rate--not the starting balance). Anyone who doesn't understand the overall economics of smart phones probably really shouldn't be buying one.
How about they do something like this...
If they are going to make customers sign a 2 year contract for the subsidized price (the time they think it takes for them to recoup the costs), maybe phone companies should offer warranty service for that period. The cell phone company has you by the balls, so they could at least make the experience a bit better for customers.
I would only cancel my contract for a few reasons:
- Service degradation in the area where I use the phone.
- Phone becoming unusable (either my fault or a hardware issue)
If they want you to pay for those two years, then at least make sure the device that locks them into that two year contract works for the length of the contract.
If they are going to make customers sign a 2 year contract for the subsidized price (the time they think it takes for them to recoup the costs), maybe phone companies should offer warranty service for that period. The cell phone company has you by the balls, so they could at least make the experience a bit better for customers.
I would only cancel my contract for a few reasons:
- Service degradation in the area where I use the phone.
- Phone becoming unusable (either my fault or a hardware issue)
If they want you to pay for those two years, then at least make sure the device that locks them into that two year contract works for the length of the contract.
I was one.
When you buy a subsidized phone, the carrier is effectively loaning you the difference between the actual cost of the phone and the $100-$200 you're giving them. You repay the loan during the term of the service - it's factored in to the monthly rate. (Which does not mean that you pay it off in 3 months - call and data usage DOES have a cost associated with it as well. You pay it off over 12-18 months, depending on your usage level.)
If you terminate your contract early, then they are no longer able to collect your loan payment, and so you have to pay it off immediately. This is what the ETF represents.
From my perspective, a higher ETF = a potential higher subsidy. Which means I can hope that an intro level iPhone 4 will be $99 or $149, not $199. It may not turn out that way, but it's a possibility.
There is never a good reason to actually pay an ETF. If you absolutely need to get out of your contract early, generally one of the following has happened:
- The carrier's service has stopped working in your area.
- You've moved to an area where there is no service.
In both of these situations, you can generally work with the carrier, and if they're unable to provide service, they can let you out of the contract for zero or reduced ETF. I succeeded in doing this with Sprint.
If you simply "feel like" getting out of your contract, because you want to flip your phone on eBay or you want to pick up the new shiney Android phone on T-Mobile, or you decided to become a hermit, then by all means, pay off your loan before you go.
Bfd
what is everyone crying about??
i hate AT&T as much as anyone, but really, why do you care about an ETF? Do you not understand what a CONTRACT is? When you sign a contract to stay with a carrier for 2 years, THATS WHAT U HAVE TO DO! Of course something better might come along (Verizon iPhone, better/cheaper plans on rivals, other phones u might want, etc), that's why AT&T and Verizon and everyone else locks you in for 2 years!
The ETF should be $1000 or more just to punish fools who enter into an agreement with the intention that "Oh, if I change my mind I'll just break the contract" Learn to abide by your agreements, people, and quit your crying!
what is everyone crying about??
i hate AT&T as much as anyone, but really, why do you care about an ETF? Do you not understand what a CONTRACT is? When you sign a contract to stay with a carrier for 2 years, THATS WHAT U HAVE TO DO! Of course something better might come along (Verizon iPhone, better/cheaper plans on rivals, other phones u might want, etc), that's why AT&T and Verizon and everyone else locks you in for 2 years!
The ETF should be $1000 or more just to punish fools who enter into an agreement with the intention that "Oh, if I change my mind I'll just break the contract" Learn to abide by your agreements, people, and quit your crying!
3rd Year
I agree, 1000$ ETF, I mean who cares?
But should the carrier charge you the same monthly fee for the 3rd year?
If you are happy with your phone, you want to wait for an upgrade or whatever, you pay the same monthly fee during the 3rd year as you paid during the contract term. The monthly charge should be LESS, because you have paid for the phone!
I agree, 1000$ ETF, I mean who cares?
But should the carrier charge you the same monthly fee for the 3rd year?
If you are happy with your phone, you want to wait for an upgrade or whatever, you pay the same monthly fee during the 3rd year as you paid during the contract term. The monthly charge should be LESS, because you have paid for the phone!
Great point. I actually forgot about that. ATT has gone out of their way in trying to accommodate iphone users. They changed the upgrade time table for 3G users who wanted to upgrade to the 3GS. They have waived upgrade fees in the past, something that many other carries don't do. In my opinion ATT has been very reasonable in how they have handled the iphone and it's subsequent re launches each year. Alas though, the complainers will never be happy. That is until the iphone and it's service is free. Even then they would bitch about how it still sucked.
They really should say something like this:
The idea is, and we think that it's a fair approach, that your early termination fee should reflect the amount we covered on the purchase price of your device.
But of course that would require them to actually think about what they're saying before they say it.
I see this as good news. What it means is that we could see an iPhone on another carrier soon. Very soon even. I would not expect at&t to raise ETFs until it as near the end of exclusivity so that they wouldn't deter anyone from purchasing an iPhone on their network until it could no longer be avoided, i.e. right before an announcement.
Let's be clear here
I am sick and tired of the AT&T problems with their network. I will be one of the first guys jumping ship to the Verizon network when it hits. In addition, many of the managers in the college where I work will be BUYING the iPhone for Verizon when it becomes available. While I may contend that it is the content on the iPhone that makes it great, others don't see that as an added value now that the Android market is what it is. So, sooner or later Apple will need to break from AT&T and when it does, the timing will have to be perfect. Android is all over and if Apple waits much longer, well, let's say history is repeating itself. Apple lost the desktop wars years ago because of stubbornness, they could lose the mobile war if they continue to think their way is the only way. It isn't Apple. AT&T is screwing your customers. I already know of several previous iPhone users who jumped shipped and got a droid, they haven't regretted it yet and are glad they did. LISTEN UP APPLE...we have CHOICES now....
I am sick and tired of the AT&T problems with their network. I will be one of the first guys jumping ship to the Verizon network when it hits. In addition, many of the managers in the college where I work will be BUYING the iPhone for Verizon when it becomes available. While I may contend that it is the content on the iPhone that makes it great, others don't see that as an added value now that the Android market is what it is. So, sooner or later Apple will need to break from AT&T and when it does, the timing will have to be perfect. Android is all over and if Apple waits much longer, well, let's say history is repeating itself. Apple lost the desktop wars years ago because of stubbornness, they could lose the mobile war if they continue to think their way is the only way. It isn't Apple. AT&T is screwing your customers. I already know of several previous iPhone users who jumped shipped and got a droid, they haven't regretted it yet and are glad they did. LISTEN UP APPLE...we have CHOICES now....
The monthly fee is for service. Your service doesn't change whether you have it for 1 month or 48 months. Why would you pay less once you've completed your term? You're not paying monthly for your phone, as the monthly rate is the same for people who sign a 2 year contract or go month-to-month to start.
If they were charging MORE per month while on contract to cover subsidy (like T-Mobile offers to do), then you'd have a point. But then people around misconstrue it as T-Mobile rewarding you with a monthly discounted rate if you don't accept a device subsidy. That's not true. You're just not going to pay extra.
I don't think a Verizon iPhone is coming anytime soon. Either make the jump to Android or stick with AT&T. Those are your choices.
Oh Dear.
If you are NOT paying for the phone over the 2yr contract why is there an ETF? The ETF allows the carrier to cover the phone if your bail.
If you are NOT paying for the phone over the 2yr contract why is there an ETF? The ETF allows the carrier to cover the phone if your bail.
Yes, one problem is, the carriers have made it so there is absolutely no incentive for people to buy an unlocked phone in the US. Whether you buy an unlocked phone or not, you still have to pay the same monthly bill. So what incentive is there for someone to pay the extra money to purchase the unlocked version- essentially giving the money to the carrier earlier instead of just a possibility of giving it later if they need to cancel? Just for the privilege of going month-to-month but still paying the same bill as the contract people?
There aren't that many reasons to cancel really. Maybe somebody might want that if they switched carriers all the time to constantly have the latest phone or something, but those people wouldn't care about cost anyway.
Until the carriers price their service according to whether you're recouping a subsidy or not, this isn't going to change.
There aren't that many reasons to cancel really. Maybe somebody might want that if they switched carriers all the time to constantly have the latest phone or something, but those people wouldn't care about cost anyway.
Until the carriers price their service according to whether you're recouping a subsidy or not, this isn't going to change.
I've been running two 3GS and one 3G on TMO's network (both 3GS have grandfathered data plans $6 and $10) for nearly a year and hardly notice the difference between 3G and Edge speeds. I almost never use my personal 3GS on WiFi because it's just fine on Edge.
I have never looked back after leaving AT&T and just migrating the phones to my older TMO service. I am in the camp of hoping TMO gets the iPhone in the states.
I think this is reasonable IF and only IF they allow contract upgrades after 12 months so that people can get a new iPhone at every interval if desired. Just my opinion...
I use the YouMail app and get VVM on my iPhone just fine. I also get text, email and alert notifications when a VM is left. No hassle...