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the reason for no charge for At&t etf

Discussion in 'Western US Wireless Forum' started by rockstar, Jul 26, 2002.

  1. rockstar

    rockstar Member

    Jul 25, 2002
    Likes Received:
    the reason for no charge for At&t etf

    Subscribers to AT&T Wireless this month will get a little surprise in their monthly statement: A get-out-of-contract-free card. The carrier says it is offering in this month's bill the option for subscribers to back out of their contracts without paying the $175 cancellation fee if they halt services by the end of July.

    The carrier plans to raise two wireless-related service rates, and says that it is giving users the chance to leave their contracts if they don't want to pay the new prices. New charges essentially follow the lead of other carriers -- such as Sprint PCS -- that charge $1.25 for directory assistance calls rather than 99 cents. AT&T Wireless also will begin charging airtime for outgoing calls that remain unanswered for 30 seconds or more, says spokesman Mark Siegel.
    ''[These charges] are exactly what our competitors are charging,'' Siegel says. ''We likely won't handle all future situations this way, but we just felt in this case that the right thing to do was give them this opportunity [to cancel with incurring the $175 fee].''

    Cancellation fees are set up to keep subscribers on board -- forcing them to decide whether its worth the cost to switch to a new provider or just stick it out through the end of the contract. Faced with slowing new-subscriber numbers, carriers want to sign up users for lengthy contracts to keep them with the company and keep churn rates low. The FCC's recent decision to delay local number portability requirements -- making it impossible for users to swap service providers without changing numbers -- also may help curb churn.


    Hmmm. Wonder what else will change....
  2. kindaichi

    kindaichi New Member

    Jun 21, 2002
    Likes Received:
    I happen to receive one of those card:
    with this printed on the backside:

    Rate Change for AT&T Connect Service
    Charges for busy or unconnected calls

    I'd say AT&T is very generous on this offer.
  3. Guest

    Guest Guest

    I think AT&T is generous too. But I have a different take on this. Why would AT&T allow customers to get out of their contracts? Would they really do this out of pure kindness? My thought is that AT&T, by changing its rates, would be breaching the contracts of their customers, thus voiding the contracts of everyone who signed up for the service. Since I'm guessing AT&T includes their rates for directory assistance and other charges in the contract, changing anything in the contract would void the contract. (I don't have ATTWS so I don't know for sure.) Offering this option could be AT&T covering its investment. Otherwise a customer could argue that they don't have to pay to get out of the contract because the service under contract is no longer provided. Just a thought that occurred to me while reading this thread...
  4. LabMonkey

    LabMonkey New Member

    Jul 25, 2002
    Likes Received:
    verizon is letting their customers go too this month, except, u get 45 days from the billing date in which u received the slip....
  5. ComicalMoodyDan

    ComicalMoodyDan Gold Senior Member
    Senior Member

    Dec 21, 2001
    Likes Received:
    Kingsport, TN
    My Phone:
    LG Volt
    Wireless Provider(s):
    I haven't heard anything about Verizon doing this also. Why Verizon? Anybody know the details?

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