AT&T Raises Eyebrows by Raising Early Termination Fees. Is Verizon The Culprit?

[Michael Essany]

While there is little definitive supporting evidence to validate the claim asserted by many this weekend, it appears that some folks are convinced that AT&T's announcement of an escalated early contract termination fee means that the iPhone is coming to Verizon and this is how AT&T will prevent a massive exodus to the rival carrier.

Since the iPhone was unveiled in 2007 along with an exclusive carrier deal through AT&T, millions have waited in anticipation - mostly on the backs of rumors - for the handset to finally come to other carriers. Now, as Apple readies its next gen iPhone, AT&T is raising eyebrows by hiking the early-termination fee for smart phones from $175 to $325, effective June 1st.

Some clearly believe the move is a preemptive strike against AT&T customers who might consider jumping ship "if" the iPhone comes to Verizon (or elsewhere) in the coming months. Of course, given the increased competition in the marketplace and the booming business of the smartphone industry even beyond the iPhone's market share, an equally cogent argument could be made that AT&T is simply protecting itself from added competition, not merely the threat of a Verizon iPhone.

AT&T isn't saying much about their incentive for the sudden, drastic spike, except that they're looking to play "fair." That is, the carrier is similarly reducing termination fees for its more basic mobile phones. "The idea is, and we think that it's fair approach, that if you spend less on a device, your early-termination fee should be less," said AT&T spokesman Mark Siegel. "If you spend more, your early-termination fee should be more."

[gbarielmoreno]

Why can't you just tell AT&T that u don't have a smart phone anymore and use a reg Mobil phone for a couple of weeks and then cancel.

[jeffhuys]

gbariel:
That won't work, they're smart enough...

[RonHC]

ahem isn't Verizon's ETF $350

[tsatryan]

With all the ATT bashing going on, just thought I would say that I was a Verizon customer, and constantly had to deal with their inane controls over everything about the PDA phones I used. They controlled everything. They locked down the OS on the phone, crippling what clearly worked on other carriers using the same phone. Their prices were exorbitant, and their phone choices were anemic. But, they supposedly had the best service around, so that's what we dealt with.

When the iPhone arrived, I switched to ATT. I have been happy with them. Their service in my area is at least on a par with Verizon's. Anywhere I travel, I have had no problems using ATT at all. Admittedly, although I do travel a good deal, there must be locations that ATT's coverage is not good. But, I know first-hand that there are likewise places where Verizon's coverage is lousy.

My observation has been that whatever mobile service people use, they will complain about it. It's the "grass is greener on the other side" syndrome. I predict that IF the iPhone comes to Verizon, then there will be people who will switch, and that we will then hear the same complaints about Verizon as we near about ATT. Plus, many others - the leopard doesn't change his spots - so, I am sure that people will absolutely LOVE V-Cast limitations on their iPhones...

I expect to be staying with ATT no matter what transpires with any hypothetical Verizon iPhone.

[giancarlo]

AMEN TSATRYAN!!! That's what I've been arguing with everyone. I've had ATT, Verizon, TMobile, Nextel, Sprint......each one has a pro or a con. Theres no perfect provider so why cry? Yea, Verizon charges alot on their plans too....alot of little fees. Wasn't there several articles on several sources stating that the exclusivity contract with ATT was going until 2012? And I still continue to argue the fact that it doesn't make business sense for APPLE to make a CDMA phone that will possibly only work on two carriers.....when everyone else is GSM. I think if Verizon gets the iphone....it'll be the 3G model only. Kind of like when WALMART got the $99 iPhone.

[whereswaldo]

Why can't you just tell AT&T that u don't have a smart phone anymore and use a reg Mobil phone for a couple of weeks and then cancel.

they can tell

[Nickaroni22]

I've been a AT&T customer for about 11 years, back when it was Cingular. I'm very satisfied with them, any issues I've had they've always fixed them hands down. Where I live service and 3G is great. Other carriers are bound to get the iPhone sometime. Because there's alot more money out there for Apple too make.

[chrisrotolo]

tigten the handcuffs huh AT&T?

[extremzocker]

bunch of greedy ****

[InDashMP3]

You do know that the simple fact the raised their ETF, is cause to cancel without an ETF? They implemented a change in terms which would allow you to get out of the contract if you do not agree with the new ETF fee. If you get out, the ETF fee is waived....ironic huh? When the 3GS came out, I wanted to get out of my Verizon contract. Lucky for me, they changed their txt msg rates, so I was able to cancel my contract early without an ETF. .If I knew for a fact that the iPhone was coming to Verizon, I would be getting out now..

[lerrysan]

Why can't you just tell AT&T that u don't have a smart phone anymore and use a reg Mobil phone for a couple of weeks and then cancel.

It'll work. buy a prepaid cheap phone.... then put your sim on it. make a couple of phone calls.... then go online or call ATT and have the iphone data removed..... the att server will recognize your crappy phone and after a couple of days you can terminate and you will be charged the termination fee for crappy phones.....

[George Lopez]

I once flirted with this att "supervisor" lady and got my etf waived for a second line i had with att. But of course for that to work, you have to have that charm like me.

[wolverinemarky]

sigh dont matter to me i am staying with AT&T have had it since cingular also and havent had any probs so I could care less about the ETF, and i do hope verizon gets the iphone that way all these whiners can go whine to verizon and bring their customer service down and their bandwidth to a crawl lol

[Luppin]

AT&T has iPhone exclusivity until 2012 - CNN.com

[The Maestro]

They couldve asked for our soul but some of there customers are gingers so instead they want money. At least it doesn't effect existing people or I would sue my way out

[aperry]

You do know that the simple fact the raised their ETF, is cause to cancel without an ETF? They implemented a change in terms which would allow you to get out of the contract if you do not agree with the new ETF fee. If you get out, the ETF fee is waived....ironic huh? When the 3GS came out, I wanted to get out of my Verizon contract. Lucky for me, they changed their txt msg rates, so I was able to cancel my contract early without an ETF. .If I knew for a fact that the iPhone was coming to Verizon, I would be getting out now..

No, I don't think this is true in this case because they're only raising ETF fees on new contracts, so your existing contract is not affected and therefor you cannot opt out (without the fee).

[bignighttrain]

Just get a cheap phone replacement wait a month or so or until the next iPhone comes out that's what I did when the 3G and 3GS came out. I tried the blackberry touchscreen phone they said was better than iPhone then canceled version and back to AT&T and the iPhone.

[CONVBMW]

I once flirted with this att "supervisor" lady and got my etf waived for a second line i had with att. But of course for that to work, you have to have that charm like me.

LOL.........NAUGHTY !!! Well done.

[doitchinkstyle]

Can't it also mean that because apple is aware 4.0 is already j/b that an unlock is not far behind...so this could be a tactic to prevent this from happening.