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AT&T raises ETF on Smartphones Beginning June 1st

Discussion in 'Wireless News' started by M in LA, May 21, 2010.

  1. M in LA

    M in LA Mobile 28 Years Plus
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    Read full article @ Computerworld

    Increase could be tied to next iPhone launch and possible loss of iPhone exclusive deal, some say

    AT&T's early termination fees on new and renewing smartphone and netbook customers will jump from $175 to $325 on June 1, following similar actions by other carriers, the company said today.

    In an open letter to customers (see below), AT&T said it will also drop the ETF on new and renewing customers of basic and quick messaging phones by $25 to $150 on that date, the letter said.

    A spokesman refused to comment beyond the contents of the letter, which described the purpose of the ETF's as a way for AT&T to offer industry leading phones below their full retail price, in exchange for a two-year service commitment. For example, a $199 Apple iPhone would cost $599 without a contract. AT&T has said that iPhone customers pay on average more than $90 in service fees each month.


    Below is the actual "open letter" to customers from the AT&T site: AT&T An Open Letter

     
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  2. Steve B

    Steve B Bronze Senior Member
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    I wouldn't have an issue with a higher ETF if the ETF was the amount of the subsidy and if the ETF ended up being $0 at the end. These new ETFs still have money left over after the two years which means its just a profit thing for them. It is a ripoff.

    Also, I have no doubt that this is tied to the next iPhone.
     
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  3. M in LA

    M in LA Mobile 28 Years Plus
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    When one lemming does it, the other lemmings follow...I'm surprised it took AT&T this long to enact this.
     
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  4. charlyee

    charlyee Ultimate Insanity
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    To the best of my knowledge, the iPhone is the only one that has a difference of $400 between contract and full retail. All others are typically $150, so from that perspective the $325 is completely ridiculous.

    Some devices have an extra $100 rebate but for even those the difference is $250.

    BlackBerry9700/5.0.0.656 Profile/MIDP-2.1 Configuration/CLDC-1.1 VendorID/102
     
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  5. M in LA

    M in LA Mobile 28 Years Plus
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    I am in total agreement that these $300+ ETF's are :censored: ridiculous. Pardon my censored swearing, but that's how I feel. It's a money grab, regardless how the carries justify the amount.
     
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  6. Eileen89

    Eileen89 Bronze Senior Member
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    I'm not surprised at all…… I believe AT&T would have done it a lot sooner if they weren't waiting to see what the outcome of the FCC's investigation of why Verizon raised the ETF on their smartphones.

    Mozilla/5.0 (iPhone; U; CPU iPhone OS 3_1_3 like Mac OS X; en-us) AppleWebKit/528.18 (KHTML, like Gecko) Version/4.0 Mobile/7E18 Safari/528.16
     
  7. Eileen89

    Eileen89 Bronze Senior Member
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    I agree with you on it being rediculous, but only on certain devices. The problem is that there were just too many people that were buying phones like the iPhone at a discount, then paying the ETF and selling the iPhone on places like eBay. They end up making a profit, while AT&T doesn't.… I think you brought up a good point here about the type of smartphone device though. Maybe what carriers like Verizon and AT&T should do is set the ETF to match the outright cost of the devices themselves? IMHO, this would discourage those from buying phones like the iPhone just to make a profit, and yet, keep it fair to those that don't have a higher priced device……

    Mozilla/5.0 (iPhone; U; CPU iPhone OS 3_1_3 like Mac OS X; en-us) AppleWebKit/528.18 (KHTML, like Gecko) Version/4.0 Mobile/7E18 Safari/528.16
     
  8. Steve B

    Steve B Bronze Senior Member
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    Yeah..they need to have the ETFs based on the subsidy like they're supposed to but, they don't. The ETF should be $0 at the end but, the way it works out for most phones, you still end up with a dollar amount at the end of the contract before it goes month to month.
     
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  9. KyleAndMelissa22

    KyleAndMelissa22 Woot Woot, Splat !!!
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    As long as you're satisfied with the service you won't wanna cancel, and therefore this won't affect most customers, IMO. ;)
     
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  10. Shizam76

    Shizam76 Shizam! Babyyyyy!
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    I USED to be satisfied with the service until they starting messing with everything. Throttling data traffic so my incoming and/or outgoing MMS's arrive 5+ hours later. There were no problems until the iCrap came out.

    I am already gone from at&t....thankfully....and won't be scared about a $375 early term fee for a palm pre.
     
  11. Eileen89

    Eileen89 Bronze Senior Member
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    Sorry that AT&T's service didn't work out for you, however, as an iPhone owner, I can say without hesitation that it is NOT crap. I have not had one problem with AT&T service or my 3GS since I started using it one month ago.…

    Mozilla/5.0 (iPhone; U; CPU iPhone OS 3_1_3 like Mac OS X; en-us) AppleWebKit/528.18 (KHTML, like Gecko) Mobile/7E18
     
  12. fb

    fb Senior Member
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    The monthly service charges should drop if you remain on a plan after the contract has expired and the subsidy recouped. After all, the carrier has made back the subsidy over the period of the contract and anything else is just excess profit.
     
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  13. M in LA

    M in LA Mobile 28 Years Plus
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    Oh how I wish this could be true. I just can't see Verizon EVER being this altruistic and/or customer friendly on their best day...It's like asking the devil to think about anyone else other than himself. NOT gonna happen. I'm thinking such an event would bring on the end of life as we know it...
     
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  14. Shizam76

    Shizam76 Shizam! Babyyyyy!
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    Some are lucky enough not to have problems...glad you are ok with yours. But all the iPhone activations has bogged the network down...still today. Data traffic is being HEAVILY throttled to accommodate iPhones. This is why they still aren't allowing tethering, the network is not stable enough (I forget the exact words at&t used) I just couldn't take it anymore. I figured, 2 years with someone else, by then the LTE and whatever 4th generation services used will be hashed out by then to reevaluate.
     

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