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

As much as I don't want to type it, the fact that this ETF change only effects new/renewing subscribers and not current ones does not tell me that the Verizon iPhone is coming this summer.

It will likely be coming sometime in the next year, but not necessarily right away.

As much as I think the new iPhone is going to be incredible, I'm going to have a hard time justifying the purchase if it gets me beneath this kind of brutal contract with AT&T -- especially knowing that within the year I'll be leaving for a different carrier.

Hopefully Apple will bite the bullet and pre-announce the Verizon phone (if it exists), even though it might hurt U.S. sales for the quarter.
 
I apologize ahead of time, but...

Some of you are extremely immature and apparently have no idea how business works. That being said, no one is forcing you to sign a contract with AT&T or buy an iPhone.
 
I'm sure this means they'll unlock your iPhone after your contract is up or you pay the ETF, right?

Right?

Why do I hear the sound of crickets chirping?
 
RidleyGriff said:
As much as I don't want to type it, the fact that this ETF change only effects new/renewing subscribers and not current ones does not tell me that the Verizon iPhone is coming this summer.
Click to expand...

I don't think they CAN change it for current customers. I believe it's part of the contract that people currently have.
 
"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."

Unless you move the ENTIRE family plan to a better network. Most corporations have discount plans with all the major vendors. That's just wishful thinking.

The increase in early termination is a direct indication that AT&T's contract will expire before the two year-upgrade cycle kicks in.
 
sonicwind said:
We need some regulation here. That's extortion. There's no way that's fair. I bet the maximum they are going out of pocket on day one for subsidizing the phones is $200. We need some regulation here. Next they'll make you come to a store in person to cancel your contract and take you in the back room surrounded by 3 pushy salesmen that alternately threaten you and beg you to stay on.
Click to expand...

Actually, I believe the subsidy comes to around $400 for AT&T.

And, you're the one breaking the contract -- if you don't agree to the terms of the contract, don't sign one. Buy the phone retail and pay the full price yourself.
 
Peace said:
I may be wrong but doesn't a change in a contract give you a way to end the contract without a termination fee?
Click to expand...

Indeed. Most often it is a change in text message rates. Slickdeals and FatWallet are good ways to find these changes. The cell company is supposed to tell, but they don't go out of their way to make sure you find it.

If the ETFs were being changed retroactively on existing contracts, there would be grounds for a termination. That isn't the case here though.

wrast said:
I want to know who the 8 people are that voted this as positive!
Click to expand...

*Raises hand*
 
Not a surprise

It's not surprise, other caries are doing this and AT&T is late to the party.

Possibly they are afraid when people will leave the network if the iPhone is going on other carriers.
 
Sounds to me like there are some biased people on this board. Verizon's Termination fee is 325 also but that's okay? But when AT&T raises it it's not? Wrong.

Admit you guys you hate AT&T which is fine but dont make it seem like the ETF is the issue because it's not. Also the people who claim they won't pay the ETF with AT&T. Thats great and when your credit becomes all Jacked up from stiffing a wireless provider.

1) You will have no one to blame but yourself
2) You will most likely pay a deposit
 
Holyghost said:
Is this part of a 1-2 punch by AT&T to protect themselves against a Verizon iPhone. If you recall, a few weeks back it was noted that AT&T was relaxing the upgrade eligibility requirements for a new iPhone 6-9 months (or so?) to a June date. Is the plan here entice people with a new iPhone early (half year enough? will it go to a year?), at the risk of a now 325$ ETF?

Food for thought.
Click to expand...

I'd re-up for 2 years in June for a new 4G at subsidized price -- though, I just did the 3GS on launch day last year, so I'm fairly confident I won't be one of the accounts that get early upgrade eligibility.

All this talk of the iPhone to Verizon is amusing -- iPhone users are well-documented data hogs. I can't wait to see their network get slammed when people flock over to get the VZW iPhone. It'll be about the same as AT&T at the end of the day.
 
msb3079 said:
I don't think they CAN change it for current customers. I believe it's part of the contract that people currently have.
Click to expand...

Yep. Which basically puts a lot of us in the position of having to consider not buying a new iPhone until we have a sense of where things are going carrier-wise.

Not a lot of incentive to re-up with AT&T with potential diff carriers on the horizon and a $325 penalty.
 
A change in contract usually give you somewhere b/t 60 and 90 days where you can opt out of the agreement at no penalty at all since the terms have changed. If I was anyone I would hold off as long as I could then decide, new phone or new carrier.
 
Complete Garbage

The FCC needs to put an end to cell phone contracts. The whole idea is anti-competitive. The airwaves belong to the people, not the cellular companies. The whole nonsense that you have to be locked in to a company in order to use any single device is criminal. We should demand that in exchange for using our bandwidth, we get the freedom to chose the service we want without being locked in for two years. Sure, you can buy an unlocked phone, but you are still paying the same price for service that everyone else does. How about we legally require all phones to be sold unlocked, and then we get to chose the best service at the lowest price? This would put downward pressure on both the actual cost of the phone and the service. Oh wait, that would mean capitalism. I don't blame these companies for trying to make as much money as they can, that is their job. We need to demand that the FCC starts to encourage competition and end this nonsense once and for all.
 
Plutonius said:
I'm surprised you would consider dealing with Verizon after what they did to New Hampshire, Maine, and Vermont. Verizon dumped all their landline customers (voice and computer) to Fairpoint (a bankrupt company). Verizon wasn't losing money in these states but, I guess Verizon wasn't content with the money they were making. Right now, Verizon could offer me a free smartphone and calling plan and I would not accept it. People from New Hampshire, Vermont, and Maine should be boycotting Verizon. Verizon screws their customers over more than the others combined.
Click to expand...

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...
 
Confirmation

I'd say that pretty much confirms the iPhone is coming to Verizon. They can only delay the inevitable.
 
I freaking knew they'd do this

Yep just as I thought, Verizon's getting the iPhone and AT&T is Pooping in there drawers that people are going to jump ship for a better network.

Yessssssssssssssssssss, to predictable , first dela vega or what ever his name is says theirs now worries and now this.

writings on the wall wooohooooooooo
 
Yikes, the Droid Incredible just got $150 more attractive. Still, I guess I'll check out the new iPhone's specs before I leap off the iPhone bandwagon...
 
firewater101 said:
The FCC needs to put an end to cell phone contracts. The whole idea is anti-competitive. The airwaves belong to the people, not the cellular companies. The whole nonsense that you have to be locked in to a company in order to use any single device is criminal. We should demand that in exchange for using our bandwidth, we get the freedom to chose the service we want without being locked in for two years. Sure, you can buy an unlocked phone, but you are still paying the same price for service that everyone else does. How about we legally require all phones to be sold unlocked, and then we get to chose the best service at the lowest price? This would put downward pressure on both the actual cost of the phone and the service. Oh wait, that would mean capitalism. I don't blame these companies for trying to make as much money as they can, that is their job. We need to demand that the FCC starts to encourage competition and end this nonsense once and for all.
Click to expand...

some of us don't want to pay $600 upfront for a phone

the airwaves might belong to the people, but the cell carriers pay billions of $$$ to license the frequencies so we have to pay it back
 
firewater101 said:
The FCC needs to put an end to cell phone contracts. The whole idea is anti-competitive. The airwaves belong to the people, not the cellular companies. The whole nonsense that you have to be locked in to a company in order to use any single device is criminal. We should demand that in exchange for using our bandwidth, we get the freedom to chose the service we want without being locked in for two years. Sure, you can buy an unlocked phone, but you are still paying the same price for service that everyone else does. How about we legally require all phones to be sold unlocked, and then we get to chose the best service at the lowest price? This would put downward pressure on both the actual cost of the phone and the service. Oh wait, that would mean capitalism. I don't blame these companies for trying to make as much money as they can, that is their job. We need to demand that the FCC starts to encourage competition and end this nonsense once and for all.
Click to expand...

The airwaves don't belong to the people as AT&T et al have spent billions putting up antenna to create those signals. They very much belong to the networks. Of course, you can fund your own mobile network if you so choose....
 
Well, this isn't good, but with the Verizon iPhone on the horizon, this sounds like the only desperate move they could make. They failed to make AT&T more attractive to the majority of consumers over the life of the iPhone's exclusivity, and will instead try to gouge anyone who wants to jump ship mid contract.
Solution: don't jump ship, unless you have no choice.

By AT&T's own definition of the ETF, shouldn't this directly affect the subsidy of phones? A higher ETF should equate to lower priced entry to the contract. That would be a great way to bring iPhone pricing down. How about a 32 gb iPhone starting at $99 and a 64 gb at $199?

Wouldn't that be stellar? People would quickly forget about ETFs...
 
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