AT T raises ETF (Early Termination Fees) Tariff

                 

Verizon had recently announced that it was increasing its ETF(Early Termination fees) for smartphones and other advanced devices to $350. which was almost double compared to previous fees. Verizon's new policy called for $10 to be subtracted from the ETF for every month of service completed. It would be $120 for skipping out in the penultimate month of a two-year contract. Now its AT&T, turn which has just raised to $325.
AT&T announced the ETF price hike for smartphones in a press release issued on Friday, and at the same time, announced reductions in ETFs for those buying basic and budget phones. Starting June 1, customers purchasing Low budget phones will be subjected to a $150 ETC, a $25 drop from the previous $175 fee. Customers purchasing more advanced, higher end devices, including netbooks and smartphones will be subjected to a $325 ETF, reducing in $10 increments for every month of service. These new fees will come into effect on in just a couple of weeks but will not affect customers with existing contracts.

Press Release

An Open Letter to our Valued Customers

May 21, 2010
At AT&T, we work hard every day to provide you with a great wireless experience at competitive prices.
One of the ways we do this is to offer you the industry’s leading wireless handsets below their full retail price when you sign a two-year service agreement. In the event you wish to cancel service before your two-year agreement expires, you agree to pay a prorated early termination fee (ETF) as an alternative way to complete your agreement. Of course, if you prefer not to enter into a term commitment, 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.
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.
Thank you for being an AT&T customer. We hope you enjoy your AT&T wireless device and service. We appreciate your business and we will continue to work hard to earn it.

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