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The “Captive Audience Blues” – AT&T raises iPhone early termination fee

And not just “a little bit…!”

Beginning June 1, 2010, the early termination fee (ETF) for “basic and quick messaging phones” will decrease slightly, and the ETF for “netbooks and smartphones” will increase from $175 to $325! (Ouch! :-) )

According to the AT&T Open Letter:

“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.”

In November 2009, Verizon raised ITS ETF for smartphones from $175 to $350. (Note added May 22, 2010: Isn’t it AMAZING how close the numbers are? What a “coincidence!” :-) )

Do you see a pattern here? :-) And is there any chance that this will impact iPhone users “soon…?”

CNET news ran this article from All Things Digital that breaks down what the ETF for AT&T smartphone users really means.

And it’s not pretty….

(Note added later May 21, 2010: Oops! I almost accidentally filed this entry under “terrorism” [rather than “telecom”] on StumbleUpon! :-) Close enough? )

-Bill at

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