Please Prove My Friend Wrong About iPhone 4

[amitdoc2b]

I pre-ordered and am already using my iPhone 4 for personal usage, so this has nothing to do with me. But.. My friend stood in line today to get iPhone 4 and plans to sell it on eBay. He previously had a 1st generation iPhone so he is under the impression that if he bought this new phone under contract ($499 early upgrade) that he could stop paying the $15/month fee after one month since he will no longer have the iPhone 4 anymore after he sells it on eBay. With the 1st generation, he was only able to remove the $15/month fee at will because the phone was no longer under contract or not sold under subsidy.

So my question is this, won't AT&T charge him a cancellation fee or continue wanting the $15/month on the family plan for the iPhone 4 because he signed a 2 year extension for his line on the family plan? Otherwise how will they get their money back for the subsidized phone?

Let me know.. I tried to find details of this on the Internet but couldn't find the exact link with this wording to show him because he doesn't believe me.

 

[gforce216]

I'm pretty sure he can sell it. Termination fees come when you end a line, not sell a phone. He could buy the iPhone 4 under contract, sell it, then use a phone from 2002 with a sim card and be totally fine. He'd still be under contract so he couldn't upgrade a phone without waiting the 2 years or buying it at a higher price but he can do it. He can also change his plans anytime he wants because they only care about being under contract, not what phone you got when signing the contract.

 

[amitdoc2b]

I'm pretty sure he can sell it. Termination fees come when you end a line, not sell a phone. He could buy the iPhone 4 under contract, sell it, then use a phone from 2002 with a sim card and be totally fine. He'd still be under contract so he couldn't upgrade a phone without waiting the 2 years or buying it at a higher price but he can do it. He can also change his plans anytime he wants because they only care about being under contract, not what phone you got when signing the contract.

He is currently under a family plan that is not paying $15 per month for data for an iPhone. So they can keep the same data-less, iPhone-less plan for an additional 2 years since he sold the iPhone? So how does AT&T or Apple benefit out of this by selling him an iPhone for a cheaper price?

 

[beamer8912]

He is currently under a family plan that is not paying $15 per month for data for an iPhone. So they can keep the same data-less, iPhone-less plan for an additional 2 years since he sold the iPhone? So how does AT&T or Apple benefit out of this by selling him an iPhone for a cheaper price?

He signed a contract, so that guarantees them some money. Whoever he sells the iPhone to will have to pay for the data. So in the end, someone will be paying for data on that iPhone.

 

[citron230]

hopefully he is the account holder otherwise he wont be able to upgrade without them

 

[c2006]

He signed a contract, so that guarantees them some money. Whoever he sells the iPhone to will have to pay for the data. So in the end, someone will be paying for data on that iPhone.

Not if it's activated abroad or on T-Mobile domestically - AT&T won't get that money.

When you sign an iPhone contract agreeing to a data plan it means the data plan will remain on your contract for those 2 years. You can get rid of the phone and have some other phone use the data plan, but you can't cancel the data plan without terminating the contract since you agreed to pay for data for two years.

 

[dojoman]

Selling back won't be easy because once you buy one your iTunes account will be tied to the phone. Once the other person on ebay tried to activate it won't work. A lot of extra steps required to activate.

 

[Jay G.]

The best place for info is to check AT&T's wireless plan details on their site:
http://www.wireless.att.com/learn/articles-resources/wireless-terms.jsp

From the return/cancellation policy page:
http://www.wireless.att.com/cell-phone-service/legal/return-policy.jsp

Service Cancellation & Early Termination Fee

..If your Service Commitment includes the purchase of certain specified Equipment [like the iPhone] on or after June 1, 2010, the Early Termination Fee will be $325 minus $10 for each full month of your Service Commitment that you complete.

..If you are allowed to cancel service within the 30 day return period, but do not return the equipment within the return period, AT&T may charge you an amount equal to or up to the full retail price of the equipment.

The full retail price for the iPhone 4 is is $599 for 16GB and $699 for 32GB.

So he'll either have to pay the ETF ($325) or pay the difference between the retail and subsidized prices ($400).

 

[cowsrus]

has to pay an ETF if he doesn't want the $15/month