AT&T Raising Early Termination Fees to $325

[charlesg]

http://www.macobserver.com/tmo/article/att_raising_early_termination_fees_to_350/

In a move that’s sure to bring a smile to its accounting department’s face, AT&T will be raising the fee it charges smartphone customers for early contract termination from US$175 up to $325. The new early termination fee will go into effect on June 1, ahead of Apple’s expected next generation iPhone launch, although AT&T claims the timing is coincidence, according to the Wall Street Journal.

AT&T’s decision to dramatically increase smartphone contract early termination fees falls in line with Verizon’s similar fee jump. In November 2009, Verizon increased its early termination fee from $175 up to $350.

T-Mobile and Google gave Nexus One smartphone owners a shock when they announced early termination fees that totalled $550 — more than the cost of the phone.

For its part, AT&T sees the steep exit cost as reasonable since it pays subsidies to companies like Apple to keep smartphone costs down. An AT&T spokesman called the price hike a “fair approach.”

[DCBob]

1. All the more reason to NOT do a contract. Buy an unlocked or pay-as-you go phone.

The Telcos are determined to screw the public.

[SoCalDem]

2. Amen..

People are too "invested" in their toy phones..texting & calling each other all day long & playing games on them & websurfing when they should be doing other things..

I guess they are also willing to pay through the nose now.

[ProdigalJunkMail]

3. you do realize that many times the phone is

subsidized by the contract??? they are not screwing anyone...they are keeping people from screwing THEM (the caveat is whether or not they are prorating the contract termination fees).

sP

[DCBob]

5. not worth it in my opinion..

but clearly its a give and take situation.

[ProdigalJunkMail]

6. oh, i agree it is not worth it

but i don't agree with the price/value for most of the phones out there...

sP

[jp11]

4. Pay as you go ever since the big wireless providers pretty much went $40 minimum across the board

for the least minutes per month/contract whatever. Why so many people spend hundreds of dollars, if not a thousand or more, to be connected all the time which means having no peace and quiet is beyond me. Some people can and do benefit for business or other reasons but it shouldn't cost so much just to talk and send messages, if you like all the extra goodies by all means feel free to pay for it.

[Socal31]

7. People have the option to buy the phone at full cost.

What is that you say? You'd rather take the discount?


Exactly.