Off contract iPhone 5

Discussion in 'iPhone' started by falcorrr, Sep 13, 2012.

  1. falcorrr macrumors newbie

    Joined:
    Sep 13, 2012
    #1
    Forgive me if this has been asked/suggested before.

    This doesn't provide an unlocked phone, but could at least help if you are just looking to avoid getting into a lengthy contract. Considering that for voice, text, and data you are looking at at least $80 on contract, and you can get that for prepaid for $50 or less, over 24 months you are saving at least $720, and you are not locked in.

    Is it not possible to pick up an At&t iPhone 5, then call and cancel your plan? At&t's cancellation policy is as follows:

    Your Termination Rights. Within the first 30 days after service activation, you may terminate your Agreement for any reason and not be required to pay an ETF. If you terminate within three (3) days of accepting the Agreement, AT&T will refund your activation fee, if any. However, you agree to pay AT&T for all fees, charges, and other amounts incurred and owed under your Agreement, and you agree to return to AT&T any Equipment you purchased from AT&T in connection with your Service Commitment. If you fail to return this Equipment, you will be charged the difference between the amount you paid AT&T for the Equipment and the amount you would have been charged for the Equipment had you not agreed to a Service Commitment. AT&T also may charge you a restocking fee for any returned Equipment. Some dealers may impose additional fees.

    After the first 30 days, you may terminate your Agreement for any reason. However, you agree to pay AT&T for all fees, charges, and other amounts incurred and owed under your Agreement along with the applicable ETF. The Early Termination Fee is either: (a) $325 minus $10 for each full month of your Service Commitment that you complete; or (b) $150 minus $4 for each full month of your Service Commitment that you complete. To determine whether your Equipment has a $325 Early Termination Fee or a $150 Early Termination Fee, check att.com/equipmentETF.

    Now option 1 states, If you fail to return this Equipment, you will be charged the difference between the amount you paid AT&T for the Equipment and the amount you would have been charged for the Equipment had you not agreed to a Service Commitment. Here you may run into problems, as that amount does not exist, so you may be forced to return you iPhone.

    It seems like option 2 is better anyway, after 30 days you can cancel with a fee of $325. So your costs are $199 + $325 + 1 month of service + Activation, lets assume 1 month is $80, so $604 + activation. This seems very reasonable for off contract, and will allow you to enjoy your prepaid savings.

    Note: I have no idea how cancellation is handled by the other providers, nor do I know if prepaid on At&t allows the use of LTE.

    Any thoughts anyone might have on this topic, please share. Especially if there is something I am missing, because to me this seems like a great deal.
     
  2. hlong290494 macrumors newbie

    Joined:
    Sep 14, 2012
    #2
    I'm planning to do that to but I have no idea if there is any hidden cost inside it?

    Any ideas?
     
  3. kobochi macrumors newbie

    Joined:
    Oct 20, 2011
    #3
    No unlocking with ETF

    Hi. Just spoke with a lady at AT&T about canceling the contact with ETF. She said that you can terminate the contract but AT&T will not unlock the iPhone unless 2 years from the date of purchase elapses. I repeatedly explained that it was different from my understanding because back in April, AT&T said that it would unlock it if it was "out of contract".

    She said that the only way to unlock the iPhone is to buy the iPhone at full price and then request AT&T to unlock it.

    This information is still questionable for me, but it make sense for some part because AT&T probably does not want people to take advantage of canceling the contract right away (AT&T loses money).
     
  4. Briview macrumors regular

    Joined:
    Jun 12, 2010
    Location:
    Los Angeles, CA
    #4
    You do know that with taxes and fees on the iPhone, the service fees, ETF, the activation charge, the bill comes near $800-900, right? I genuinely don't understand how scalpers make that much money from contract termination or unlocked phones.

    From my understanding, Verizon is the only carrier where you don't have to pay for the first month's accrued plan charges.
     
  5. Gregintosh macrumors 68000

    Joined:
    Jan 29, 2008
    Location:
    Chicago
    #5
    Best way to go is to wait a few weeks when the properly unlocked version will be available. If you decide to go with the post pay AT&T plan you can do so just as if you would with a normal phone. Also, if you go with a prepaid plan with someone else you don't have to worry about any silly hoops to jump through. And the cost will be less because you are not going to be charged any activation fees or a first month of a plan you are not going to be using.
     

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