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If I understand correctly, ETF isn't a terribly bad deal. You've signed up for a commitment and AT&T charge you if you want out of that commitment. If you want to break your commitment in the UK, you have to pay the remainder of the contract - a sum that is usually far in excess of $150.
That said, most carriers in the UK now offer SIM only deals. You don't get a new phone but in return you can cancel at any time and the SIM only plans are very attractive.
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