AT&T, You are Acting Very Suspicious!

[Jeff Campbell]

<div class='os_post_top_link'><a href='http://9to5mac.com/node/17077?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed:+9To5Mac-MacAllDay+(9+to+5+Mac+-+Apple+Intelligence)' target='_blank'>http://9to5mac.com/node/17077?utm_s...e+Intelligence)</a><br /><br /></div><p><em>"Plan on bailing to Android on Verizon like Fake Steve Jobs? That's going to cost you nearly double on new plans compared to current costs because AT&amp;T is changing its Early Termination Fees (ETF) from $175 to $325."</em></p><p><img src="http://images.thoughtsmedia.com/resizer/thumbs/size/600/at/auto/1274655831.usr105634.jpg" /></p><p>This is starting June 1st this year, and could be as innocuous as just bringing their fees in line with other carriers such as Verizon and T-Mobile. Verizon raised their ETF to $350.00 USD from $175.00 USD in November of 2009, and T-Mobile/Google had an ETF for Nexus One phones of $550.00 USD, which is more than the phone cost. Or it could be that something more sinister is afoot! The other line of thought is that AT&amp;T is going to lose their exclusivity deal sooner than later, so they want to lock in the upcoming 4G iPhone owners for as long as they can. AT&amp;T says it's much ado about nothing in their <a href="http://www.att.com/gen/press-room?pid=17951" target="_blank">open letter to customers</a>. The timing is suspect don't you think?&nbsp;</p>

[Sven Johannsen]

AT&T is taking an action that costs them nothing, and nets them more money, and you find ths suspicious... how naive. ;(

[Jeff Campbell]

easy....easy....it was tongue in cheek...meaning perhaps it lends credence to the iPhone 4g due to the timing....;)

[encece]

My first thought was that they were trying to prevent people from switching to Verizon (or Sprint) when they get their iPhone.

But I have to ask...doesnt this go against existing contracts or is there a provision that states they can raise the termination fees whenever they want?

[encece]

An Open Letter to our Valued Customers


May 21, 2010
At AT&T, we work hard every day to provide you with a great wireless experience at competitive prices.
One of the ways we do this is to offer you the industry’s leading wireless handsets below their full retail price when you sign a two-year service agreement. In the event you wish to cancel service before your two-year agreement expires, you agree to pay a prorated early termination fee (ETF) as an alternative way to complete your agreement. Of course, if you prefer not to enter into a term commitment, we offer the same great selection of devices at their full retail price with no term commitment or ETF, as well as prepaid GoPhone options.
We are now making changes that will lower the ETF for many customers who agree to new term commitments, and will increase it for others. Current AT&T wireless customers who are within their two-year consumer service agreement or have an existing enterprise service agreement will see no change to their current terms.
Beginning June 1, 2010, we will reduce the ETF in new and upgrade two-year service agreements for all customers who are buying basic and quick messaging phones. Whether you are new to us or upgrading handsets, the ETF will decrease to $150 from $175, and be reduced by $4 for each month that you remain with us as a customer during the balance of your two-year service agreement. After the term commitment is completed, the ETF will no longer apply.
For customers who enter into new two-year service agreements in connection with the purchase of our more advanced, higher end devices, including netbooks and smartphones, the ETF will increase to $325, and be reduced by $10 for each month that you remain with us as a customer during the balance of your two-year service agreement. After that, the ETF will no longer apply.
Thank you for being an AT&T customer. We hope you enjoy your AT&T wireless device and service. We appreciate your business and we will continue to work hard to earn it.


Actually I'm wrong on that. My current contract stays the same. For new users only. So it sounds like they want to keep new 4G iPhone users on board as long as they can...preventing them from buying and moving to T-Mobile and only need to pay $175 to do so.

In the end...well within their limits IMO. Cheapen the crappy phone termination fees and raise the Smartphone termination fees. Makes sense to me. to prevent the above from happening. Makes sense to me! :D

[Dyvim]

Verizon did the same thing last November just before they released the Droid. Seems like the thing to do just before you release your next Blockbuster handset. Lure them in with the nice new hardware, then make sure they stick around for another 2 years.

Certainly makes me think twice about renewing my contract next month.

[doogald]

I'm certainly not here to defend the carriers for this, but it is true that they are subsidizing smartphone handsets more - the retail price difference vs. the subsidized price is greater than most handsets - and they collect that mandatory $30 data fee every month from us, and breaking the contract early loses both the handset subsidy and that future data fee that they were counting on when we sign that two year contract.

[Sven Johannsen]

Regardless of my snide comment above, I can't really get to indignant about ETFs. Some of the terms are a bit bizarre, but to me it is much like leasing a car or an apartment. If you lease an apartment for $1000 a month and sign a 1yr lease, if you move out in 6 mos, guess what? You owe $6000, the remainder of the lease. If you make a deal with the carrier for a free or cheap phone and sign up for two years at a minimum rate plan, guess what? You owe them two years at that rate plan. If you chose to pull their SIM out and get one from another carrier, as far as I'm concerned, you still are liable for the two years at the rate plan you signed up for. If you don't like that, don't sign up for it. Simple as that. $375 ETF after 6 mos actually beats the $60 x 18 mos you actually owe, based on what you signed up for.