AT&T Increases Early Termination Fees ahead of iPhone 4G launch

att iphone

Today AT&T in an email to its customers informed about the raise in ETF. This increase will affect all smartphones like iPhone and will also include 3G enabled netbooks. All customers who select higher-end devices “will have an ETF of $325, reduced by $10 for each month during the balance of the service agreement.”

This doesn’t appear to be a huge surprise as Verizon also recenly raised their ETF to $350 which is $25 more than what AT&T will charge.

The raise in ETF by Verizon and AT&T will not impact existing contract customers however, if you are planning to switch your carrier in-order to buy the new iPhone 4G then this will certainly be an expensive affair!

AT&T also published an Open Letter today about this change:

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.

The change goes into effect on June 1, 2010.

[Engadget]

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