AT&T to hike early termination fees to $325

Updated

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.

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Charles Starrett

Charles Starrett was a senior editor at iLounge. He's been covering the iPod, iPhone, and iPad since their inception. He has written numerous articles and reviews, and his work has been featured in multiple publications.