AT&T Raises Early Termination Fees: What About Everyone Else?
In an effort to match Verizon and—as indicated by a company spokesperson—in no way related to the potential loss of the carrier's exclusivity when it comes to Apple's iPhone, AT&T has nearly doubled its penalty for early contract termination.
The move doesn't apply to all phone holders, however. In fact, only those using smartphones have the potential to run up against the $175 to $325 leap. The company is actually lowering the early termination fee for contracts on non-smartphone devices by $25 to $150. Both sets of changes will begin for those new service activations on or after June 1; existing contract-holders won't be affected by the change until (or unless) they "resubscribe" for additional months of service.
AT&T has been quick to point out that the move in no way indicates any presumed or predicted loss of a certain, Apple-based device that the company currently carries exclusively.
"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. If you spend more, your early termination fee should be more," said company spokesperson Mark Siegel in an interview with The Dallas Morning News. "This move, what we did today, is unrelated to any device announcement or future plans."
As well, those looking to take AT&T to task for the fee hike will have to expand their focus a bit to include other carriers. Verizon, for example, still sits as king of the early termination fee hill with its $350 penalty for smartphones—raised from $175 in November of last year. Sprint and T-Mobile split the difference at $200 for all phones, and each aforementioned carrier does include provisions for reducing the fee for every continuous month of service since one's initial contract and sign-up.
"Of course, if you prefer not to enter into a term commitment," reads an AT&T statement, "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."
The Federal Communications Commission has recently taken an interested in the Early Termination Fees of all four major carriers, concerned that consumers aren't given the right amount of information prior to signing up for a new service, a new phone, or both.
"We recognize that wireless carriers may have various rationales for ETFs," wrote Federal Communications Commission Consumer Bureau Chief Joel Gurin and Wireless Bureau Chief Ruth Milkman in a January letter to all four carriers.
"At the same time, these fees are substantial (and in some cases are increasing) and have an important impact on consumers' ability to switch carriers. We therefore believe it is essential that consumers fully understand what they are signing up for—both in the short term and over the life of the contract—when they accept a service plan with an early termination fee."
The move doesn't apply to all phone holders, however. In fact, only those using smartphones have the potential to run up against the $175 to $325 leap. The company is actually lowering the early termination fee for contracts on non-smartphone devices by $25 to $150. Both sets of changes will begin for those new service activations on or after June 1; existing contract-holders won't be affected by the change until (or unless) they "resubscribe" for additional months of service.
AT&T has been quick to point out that the move in no way indicates any presumed or predicted loss of a certain, Apple-based device that the company currently carries exclusively.
"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. If you spend more, your early termination fee should be more," said company spokesperson Mark Siegel in an interview with The Dallas Morning News. "This move, what we did today, is unrelated to any device announcement or future plans."
As well, those looking to take AT&T to task for the fee hike will have to expand their focus a bit to include other carriers. Verizon, for example, still sits as king of the early termination fee hill with its $350 penalty for smartphones—raised from $175 in November of last year. Sprint and T-Mobile split the difference at $200 for all phones, and each aforementioned carrier does include provisions for reducing the fee for every continuous month of service since one's initial contract and sign-up.
"Of course, if you prefer not to enter into a term commitment," reads an AT&T statement, "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."
The Federal Communications Commission has recently taken an interested in the Early Termination Fees of all four major carriers, concerned that consumers aren't given the right amount of information prior to signing up for a new service, a new phone, or both.
"We recognize that wireless carriers may have various rationales for ETFs," wrote Federal Communications Commission Consumer Bureau Chief Joel Gurin and Wireless Bureau Chief Ruth Milkman in a January letter to all four carriers.
"At the same time, these fees are substantial (and in some cases are increasing) and have an important impact on consumers' ability to switch carriers. We therefore believe it is essential that consumers fully understand what they are signing up for—both in the short term and over the life of the contract—when they accept a service plan with an early termination fee."
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