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Evo Causing ATT to Raise ETF for iPhone Contract Breakers?

R

Rigmaster

Android Expert
Just wondering if anyone noticed that ATT announced that effective June 1, it's raising the contract fee termination for iPhone users to $350? That's double the $175 charge currently in place.

I said start looking for iPhones on eBay before the Evo releases .....:D
 
I assumed that they couldn't change the ETF to customers already under contract, and that the bump was for new contracts. If they raised their ETF in the middle of a contract that I signed that said $175, I would raise all hell. There is no way this is applicable to current contracts
 
I don't know what's going on. They just bumped up a bunch of upgrade eligility dates and now this. Surely they're trying to lock-in those renewals and new customers.

I don't think they can change the fee for existing contracts either.

I can smell some Blue desparation though.
 
MetsJetsAggies said:
I assumed that they couldn't change the ETF to customers already under contract, and that the bump was for new contracts. If they raised their ETF in the middle of a contract that I signed that said $175, I would raise all hell. There is no way this is applicable to current contracts
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if you have a iphone and expect to upgrade to the new Iphone if you are elgible for upgrade you'll be signing a new contract. So you'll be locked in. This is shady IMO because lots of new ppl with clog up the network even more and your out of luck trying to get out of your contract now.
 
MetsJetsAggies said:
I assumed that they couldn't change the ETF to customers already under contract, and that the bump was for new contracts. If they raised their ETF in the middle of a contract that I signed that said $175, I would raise all hell. There is no way this is applicable to current contracts
Click to expand...

It's only for contracts started on or after June 1st. If they tried to raise the ETF for all current customers, by law, everybody would be able to get out of their contract. If the terms of a contract are changed after it's signed, you have the right to cancel it without penalty, since it's not what you agreed to.

Things like this happen quite frequently too. A couple years ago I was on Sprint, I needed to close my contract when I was only 8 months in, due to a job that provided a discount to Tmobile customers. Right around this time Sprint had changed some surcharge by 10 cents, and I was able to use that to get out of my contract, free of charge. Although it was 10 cents, it wasn't a fee/rate I agreed to at the initial contract signing. They'll try to put up a fight, but once you say it's materially adverse to you, they'll let you go.

Carriers are raising costs of ETFs simply because these device are expensive, and I wouldn't be surprised if more carriers follow suit. Too many people were opening up lines of service to get the subsidized price of a phone, and then they turn around and cancel the account, pay the ETF, and then sell the device on Ebay for a substantial profit (recouping the $175 and then some). This is why they're doing it. Carriers give you the phone at a low price, and then make back the cost of the phone (and then some) during the 2 years of service. And when you cancel your account early, the $175 you're paying is a mere fraction of the cost of the phone. These new lofty ETFs prevent that. They make sure they get paid for their phone now.

Side note: I will be a Sprint customer again in 2 weeks time.
 
Jesse said:
It's only for contracts started on or after June 1st. If they tried to raise the ETF for all current customers, by law, everybody would be able to get out of their contract. If the terms of a contract are changed after it's signed, you have the right to cancel it without penalty, since it's not what you agreed to.

Things like this happen quite frequently too. A couple years ago I was on Sprint, I needed to close my contract when I was only 8 months in, due to a job that provided a discount to Tmobile customers. Right around this time Sprint had changed some surcharge by 10 cents, and I was able to use that to get out of my contract, free of charge. Although it was 10 cents, it wasn't a fee/rate I agreed to at the initial contract signing. They'll try to put up a fight, but once you say it's materially adverse to you, they'll let you go.


Carriers are raising costs of ETFs simply because these device are expensive, and I wouldn't be surprised if more carriers follow suit. Too many people were opening up lines of service to get the subsidized price of a phone, and then they turn around and cancel the account, pay the ETF, and then sell the device on Ebay for a substantial profit (recouping the $175 and then some). This is why they're doing it. Carriers give you the phone at a low price, and then make back the cost of the phone (and then some) during the 2 years of service. And when you cancel your account early, the $175 you're paying is a mere fraction of the cost of the phone. These new lofty ETFs prevent that. They make sure they get paid for their phone now.

Side note: I will be a Sprint customer again in 2 weeks time.
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that's true but your missing the big picture here. ATT moved mostly everyone that has a IPhone upgraded eligibility up. So when they upgrade their iphones they'll have to sign a new contract. Now you're stuck.
 
apollooff320 said:
that's true but your missing the big picture here. ATT moved mostly everyone that has a IPhone upgraded eligibility up. So when they upgrade their iphones they'll have to sign a new contract. Now you're stuck.
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Yep. Anyone upgrading their phone (assuming it's a smartphone since this change ONLY effects smartphones), and new customers get this happy new ETF.
 
I'm going to cancel before June 1st.

I bought a 3GS and got it on launch day. I don't even recall when that is, but screw AT&T. These tactics are just insulting. I'll be more than happy to leave.
 
apollooff320 said:
that's true but your missing the big picture here. ATT moved mostly everyone that has a IPhone upgraded eligibility up. So when they upgrade their iphones they'll have to sign a new contract. Now you're stuck.
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Well yeah, that's how it goes. New phone at low price = new 2 year agreement. If current customers don't want to upgrade their phones, they don't have to. ATT is only pushing the new ETF on new agreements.
 
Synthetickiller said:
I'm going to cancel before June 1st.

I bought a 3GS and got it on launch day. I don't even recall when that is, but screw AT&T. These tactics are just insulting. I'll be more than happy to leave.
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You have nothing to worry about since you already signed a contract before June 1st 2010. Now if you go and sign a contract on or after June 1st, 2010 then you would be stuck with the new EFT.
 
It only affects new customers from June 1st onward. The reason I am sure they increased the ETF because alot of ppl would get the Iphone and after 30days just pay the ETF which was $175. Then in turn sell the phone for $600-800 on ebay. and so ATT was losing alot of money as a result. It sucks but that is just business. I would not be surprised if Sprint increases it also this yr or the following.
 
why ppl keep saying it only affects new customers? It affects current customers also because when they go to upgrade their phone they'll be signing a new contract if they don't pay full price for their phone, and not many ppl pay full price for cell phones.
 
apollooff320 said:
why ppl keep saying it only affects new customers? It affects current customers also because when they go to upgrade their phone they'll be signing a new contract if they don't pay full price for their phone, and not many ppl pay full price for cell phones.
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It effects anybody who signs a contract on or after June 1st. It has no effect whatsoever on anybody currently under contract.
 
Rigmaster said:
Just wondering if anyone noticed that ATT announced that effective June 1, it's raising the contract fee termination for iPhone users to $350? That's double the $175 charge currently in place.

I said start looking for iPhones on eBay before the Evo releases .....:D
Click to expand...

I seriously doubt it. Rather, I think they had to pay more for the iPhone HD (I refuse to call it 4G) so they are locking in new subscribers so that they at least break even.
 
Makes me even more glad that I'm breaking the contract on my 2nd line soon (first is already out of contract, will be taking 'em both to Sprint come the 4th).
 
This is far less about the Evo and all about two things:

1. New iPhone coming out
2. AT&T losing iPhone exclusivity in the next year or so.

AT&T is bumping this up to get the last wave of iPhone people stuck as much as possible.
 
I do not think they can change the contract on you after signing. The bump would be for new customers when it takes effect.
 
Jesse said:
It effects anybody who signs a contract on or after June 1st. It has no effect whatsoever on anybody currently under contract.
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I know that but everyone will be off contract sooner or later and they will have to sign that new contract to get a new phone or pay full price. So eventually you'll be on that new contract.
 
No they won't. Cause they all are gonna come to Sprint for the Evo, especially after 2.2 is released!! :D
 
Good observation and good thread.


Also, if I am not mistaken, AT&T does not lose the iPhone contract next year as mentioned a few posts back. I believe I read that they now have extended the contract to 2012.

TS
 
I highly doubt that they're doing this simply because of the EVO, especially since it only matters for brand new customers anyhow.

They just watched Verizon jack up ETF fees for higher potential revenues all-around; they're just following suit.
 
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