AT&T to hike early termination fees to $325 | iLounge News

News

AT&T to hike early termination fees to $325

AT&T is planning to raise its early termination fees for smartphones and netbooks from $175 to $325, Dow Jones reports, noting that the move comes amid rumors that AT&T may lose its iPhone exclusivity over the next year. Thankfully for current AT&T iPhone customers, the rate changes will not affect current contracts; instead, they will apply to all new and renewing customers beginning June 1. Notably, the higher cancellation fees will apply to any new iPhone customers who purchase the next-generation model expected to be announced at Apple’s 2010 WWDC conference in early June. While the termination fees for smartphones will rise, the same fees will actually drop by $25 for feature or messaging phone contracts. Earlier this week, AT&T Mobility CEO Ralph de la Vega made several comments relating to the possibility of AT&T customers leaving when the company’s iPhone exclusivity ends, noting that 70% of customers are on family plans, which can be a pain to move over to a new carrier, and 40% are on corporate discount plans.

« Still time to enter the Vaja $100 Gift Code Giveaway

Apple begins populating international iBookstores »

Related Stories

Comments

1

this type of crap should be illegal

Posted by liquid on May 21, 2010 at 1:21 PM (PDT)

2

If ever there were evidence that Apple are opening up the iPhone to other vendors, this is it.
Great leak AT&T wink

Posted by sb on May 21, 2010 at 1:53 PM (PDT)

3

I’d pay that money to leave now if Verizon would support iPhone.  I’d even promise AT&T that I’d never come back!  The slowest bandwidth, least coverage, most disconnects, lowestt customer satisfaction - AT&T has it all!

Posted by Donna Martino on May 21, 2010 at 2:04 PM (PDT)

4

I can imagine the AT&T execs brainstorming:

Exec A: “How will we retain customers once the iPhone is no longer exclusive?”
Exec B: “Improve our network, coverage, and service?”
Exec C: “Offer free tethering or WiFi hotspot functionality?”
Exec D: “Increase the ETF to an outrageous level?”
Exec A: “D, I like the way you think!”

Posted by Dyvim on May 21, 2010 at 2:10 PM (PDT)

5

@Donna
Is Verizon’s network *really* gonna perform any better than AT&T’s once millions of iPhone users start using it?

US Cellphone Infrastructure is the worse of any Developed Nation, regardless of provider, except maybe New Zealand.

Posted by Dan Woods on May 21, 2010 at 2:31 PM (PDT)

6

@Dan

Developed Nation?  Actually we’re looking pretty third-world comparatively.  Verizon has the bandwidth and is ready, AT&T continues to get ready, soon, maybe…

Posted by Donna Martino on May 21, 2010 at 2:59 PM (PDT)

7

Sweet, I can’t wait til everybody jumps ship to Verizon which will only clear up AT&T’s network! Problem solved smile

Posted by Jon on May 21, 2010 at 3:26 PM (PDT)

8

I wonder how many AT&T customers are going to react like me: “Hmm, I don’t need that new iPhone.”

Posted by david on May 21, 2010 at 5:09 PM (PDT)

9

Well,... I don’t have much issues with AT&T but I agree that the verizon network would be the faster network to go to. I have the 3G and been eligible since november last year for an upgrade but did not get the 3Gs.. I wanted to wait for the upcoming deal in a few weeks.

I wanted a iPad but I’m missing the front facing cam for iChat so i’ll wait for the iPad.

crap,.. i would bay the fee just to get away to a faster network cause I have no coverage in the bldg and soon as i leave the bldg ..i get either edge or 3G ,.. it’s like a lottery ticket ..what do i get this time! lol

Posted by Dennis on May 21, 2010 at 8:56 PM (PDT)

10

Who really cares how much the ETF is?  It is SO EASY to get out of a mobile contract w/out paying the ETF.  I’ve done it myself.

First, every quarter the mobile carriers make materially adverse changes to your contract.  Sometimes they raise the text messaging rates (only applicable if you don’t have unlimited texting) or they raise the cost fo the fees wich they pass on to their customers (they are NOT taxes, but fees.)  Once they do that, you are free to leave.  They may fight you on it, but as long as you know what you’re talking about, they have to let you leave, ETF free.

Second, put in some time [with] executive customer service and AT&T will offer to let you leave w/out an ETF.  They’ve offered that to me many times.  You can start by calling AT&T’s Office of the President at 877-707-6220.

Posted by KllrDave on May 22, 2010 at 7:33 AM (PDT)

11

Early termination fees should be eliminated, not raised. And Verizon users, don’t be too enthusiastic about switching over. Once 1 million iPhones reach the network, that fast network isn’t going to be so fast anymore.

Posted by Dale on May 22, 2010 at 1:20 PM (PDT)

12

@Dan Woods: The U.S. is a huge place with many sparsely populated areas.

Posted by Galley in Greenville, SC on May 23, 2010 at 7:16 PM (PDT)

If you have a comment, news tip, advertising inquiry, or coverage request, a question about iPods/iPhones/iPad or accessories, or if you sell or market iPod/iPhone/iPad products or services, read iLounge's Comments + Questions policies before posting, and fully identify yourself if you do. We will delete comments containing advertising, astroturfing, trolling, personal attacks, offensive language, or other objectionable content, then ban and/or publicly identify violators.

Commenting is not available in this section entry.
Sign up for the iLounge Weekly Newsletter

Email:

Recent News

Recent Reviews

Recent Articles

Sign up for the iLounge Weekly Newsletter

Email:

iLounge is an independent resource for all things iPod, iPhone, iPad, and beyond.
iPod, iPhone, iPad, iTunes, Apple TV, Mac, and the Apple logo are trademarks of Apple Inc.
iLounge is © 2001 - 2014 iLounge, Inc. All Rights Reserved. Terms of Use | Privacy Policy