Thursday, May 27, 2010
Like You Need Another Reason to Hate AT&T
AT&T says it will raise the penalty for canceling your new two-year smartphone contract early to $325, starting June 1 — and yes, that includes the iPhone — the Wall Street Journal reports. At the same time, AT&T will lower the early termination fee (or ETF, as it's called in the biz) for its less advanced "feature" phones to $150, from $175.
Many are calling the increase a reaction to a similar increase made by Verizon made in November of last year, but AT&T may also be posturing themselves for the end of their exclusive rights to iPhone service, which was rumored to conclude this year. If new carriers are announced either at Worldwide Developers Conference or sometime later this year, AT&T could lose many new subscribers to competing networks, and subsequently stand to gain added revenue from the increased fees.