- Apr 12, 2001
Boston.com is reporting that iPhone subscribers will have to pay $175 to break their two year contract.
Early cancellation fees are typical for mobile phone contracts in the U.S., but the article points out that these fees typically help cover the phone subsidies that mobile carriers offer on new phones. The iPhone, however, has been heavily rumored not to benefit from these retail discounts. Regardless, AT&T spokesperson Mark Siegel justifies the fee by noting thatEven though AT&T isn't subsidizing the iPhone's hefty price -- $499 to $599, depending on the storage capacity a customer chooses -- the company will charge a $175 termination fee for iPhone users who want to break their two-year contracts.
"There are certain fixed costs we incur in serving every customer who establishes service with us."