AT&T increases ETF for smartphones and netbooks 50
Engadget is reporting that AT&T has raised its early termination fees on "more advanced, higher end devices" for new customers, as spelled out in an open letter the company drafted. The ETF has shot up to $325 when a new two-year contract is created around one of those highly-subsidized smartphones or notebooks folks never want to pay full price for, and gradually decreases by $10 for each month that customer stays with the company. This move comes not too long after Verizon Wireless enacted a similar ETF hike to the tidy sum of $350. Sprint still offers its customers the best deal of the big 3, allowing them to upgrade every 12 months once they reach "premier" status and holding an ETF over them of only $200.
Does this news affect the decision making process of those of you who are looking to pick up a Pre Plus or a Pixi Plus on AT&T? Or, since its starting to become standard business practice, will it be business as usual for you?
Thanks to Krod for the tip!
50 Comments
It does not matter to me because I will NEVER become an AT&T customer in my life.
+1! Sprint FTW!
NFW... This is what happens when you have a CFO at the helm of a company.. Bottom line first, customers second.. COME ON SPRINT NEED THE NEW PALM/HP PRE ...
+1
+1 on never being an AT&T customer
They probably doing it to keep Iphone users. I'm sure it has nothing to do with the Pre Plus. AT&T coverage sucks! My blackberry never have no signal but my Sprint Pre have full bars.
you totally rite AT&T is sucks as service I have a friend that has that sht of iphone and he stop complaining to the company cause they never listen to him lol and hes paying alot money for his services soo he said that he can't wait to finish his contract and move to up to a better service.
One more reason to keep Sprint! But I would like a new webOS phone soon.
I have said it before and am saying it again ATT is complete shit of a company i will never have ATT... I use to have SBC but as soon as it went to ATT i dumped them like a hot...
+1. So true. I had Cingular then turned ATT and will NEVER go back to them. Regardless of the device. Sprint's network is faster and it runs so much better and CHEAPER than ATT.
I endured the long ride from Lynx to SNET Mobility to SBC Wireless to Cingular to ATT. Customer Service got worse at every encarnation. By the time they were Cingular, they were looping me on hold for the frequent billing foulups for over an hour at a time. By the time they were ATT, they were telling me outright lies. NEVER AGAIN. Took my multi accounts elsewhere over a $400 dispute that I won three times on the phone, but they never settled and finally rewrote my account comments taking away the promises and previous action we'd arranged. NEVER EVER ANOTHER PENNY.
I cant say if Sprint CS is any better. Unfortunately, they know how to do math and the mystery continues.
Had AT&T prior to joining Sprint. I will never go back to AT&T. Much happier with Sprint.
Nothing wrong with AT&T..
but then, Nothing Right with AT&T
Hell no, we wont go!!!
Early termination fees are designed to recoup the cost of subsidizing phones. They sell you a phone at a discounted price to keep you for 2 years and while paying that monthly fee it is recouping for the subsidizing. If you leave before the two years the company still gets its money back by charging the ETF fee.
If both Verizon's and ATT's plans are ridiculously over priced how do they justify having a higher ETF, when Sprint provides service for cheaper and comparable or better for many markets.
This is nothing but corporate greed. Verizon and ATT are scared to lose customers so instead of lowering their prices and competing fairly they use scare tactics and rely on consumers laziness to shop around. I bet you word of mouth will get confused and existing att customers will think they are bound by the 325 fee even though it is only for new customers.
Sprint tried this misinformation tactic back in the early 2000's and they fell to number 3 as a result. They have been digging themselves out of their hole ever since.
Verizon and Att will share the same fate.
I guarantee Sprint will raise their ETF to 300 now.
Little chicken and egg. If you save money by having sprint, where is the motivation to leave?
I'd rather pay $200 for a phone, than face a $300+ ETF if the carrier cant do the deed.
SPRINT! when are going to have Pre Plus?
well then I'm glad I didn't wait to get my pre plus, just made it under the old policy. Still, now when my contract is up I'm not sure if I will be resigning.
there doing this because verizon is getting the iphone around fall and so that if a customer switchs from att to verizon to get the iphone they will have to pay more for a cancellation fee
I personally don't think Apple will ever release it's iPhone on any other network, like Verizon. It's straight AT&T for Apple. The Verizon release is just a wishful rumor at this point, which is most likely false.
http://bit.ly/cBZgAQ
I've got some links to bigfoot sightings too...
Giving customers choice is antithetical to Apple's business model, it's not gonna happen.
LOL great come back!
the iphone is coming to verizon and sprint this summer buddy. google cdma iphone.
Google Verizon iPhone and you will see that with AT&T getting the iPad 3Gs that it will not be until 2011 before Verizon gets the iPhone.
one of the reasons Sprint can keep it that way is simple. Look at how many BOGO (buy one get one free) offers that Verizon and AT&T throw out there on their phones. So if the ETF has to do with re-couping money for subsidizing that makes sense. Nothing is free.
Now look over at Sprint. How many BOGO offers past a feature phone do you see? Ya almost never. That's how they can afford to do certain business practices like lowest plans, free GPS, free mobile to ANY mobile, free roaming, Premier program updating your phone every 12months, lower ETF, etc etc etc..
so Sprint doesn't have nearly as much money to recoup from subsidizing. They can do other things instead to help the customers pocket book.
I'm just saying.
The BoGo logic has a lot of holes in it. Principally that you're then dealing with 2 contracts instead of 1.
Sure you get a 'free' phone, but you then have two contracts and two potential ETF's. This isn't about recouping money, it's about intimidating customers into staying.
Yeah my Premiere status at Sprint won't count for much if there's not even a Plus to upgrade to on June 6, 2010.
You do realize you don't HAVE to upgrade right away right?
well then I'm glad I didn't wait to get my pre plus, just made it under the old policy. Still, now when my contract is up I'm not sure if I will be resigning.
AT&T is evil dropped calls fastest 3g MY ASS you cant even get 756k down ever :(
"...you cant even get 756k down ever..."
*I* can .. just tested
1. 1560k
2. 1797k
3. 1615k
-----
1657k avg
and that's why i have Sprint :)
cheap plans. awesome reliable service (at least in my area, and every other area i've been to, i travel nationwide a lot).. plus the roaming is free anyway even if you're not in a sprint area!
I left Verizon 2 years ago for AT&T and had a huge fight over ETF. Customer service and offerings at both are comparable - that is both are lousy. ETF at both are also equally lousy. I stay with AT&T because reception at my home is better there than on any other carrier, plus I have home phone/TV/internet with them so it simplifies my life to have one less vendor to complain to. Other than that, they are all the same.
That's the truth. Looking at Consumer Reports results, they all get D-. If a grade of 64 vs. a grade of 62 matters, spend the extra 20 a month! :)
I am pretty sure everyone is adding this so no one jumps ship when the EVO, the new Pre and WebOs tablets hit this fall. Logical...
I think its more about them giving away smartphones for free, then people quitting their accounts and selling the phones for a profit on Ebay (after ETF) and them not recouping the cost of the phone.
If a phone wholesales for $300 and the ETF is $150, but the phone Ebays for $450, they've managed to stick their own situation up their own exhaust pipe.
I had AT&T when I moved. After 9 months of being told new towers are going up blah blah blah, I called and demanded they let me out of my contract because they had terrible service in my area. They kept telling me how great they show the signal in my area was. After them having to call me back numerous times because my call kept dropping, they finally agreed.
I believe they hiked up the price to keep the iPhone users from jumping ship to Verizon once the iPhone is available there. It has nothing to do with the Pre Plus.
or better yet, why not just save yourself a ton of headaches and put aside $20 a month for the next 2 years. Then you can just buy the phone outright with no contracts and not have to worry about ETFs anymore.
If you stay with the company the ETF won't be a problem. Most companies will allow you to upgrade your phone well before the 2 year period. It only effects those that are jumping from network to network to get the latest technology.
Its seems AT&T learns how to add FEES from VZW. They both learn how to give discounts from Sprint. Remember when u had to pay for every txt from non-netwrk phones? Lost too many customers so they had to give in on that one. The ETF is the contract keeper like NBC's payout to Conan.
I've been on sprint since 1999 and I have to say there were years that I wanted to abanden ship. Now looking at what Verizon and at&t are doing I glad I stayed because it was worth it! Sprint service is just as good as Verizon's and if soneone says different there full of it, other then the fact the Verizon locks their agps! Screw Verizon and at&t.....
i've had sprint since 2002. same number too :)
also, i got my pre in september, not june. so by september the new webos device should be out, right? right? RIGHT?
even if it's not i won't ugprade until it does come out.
or i just might call insurion tell them i lost my pre and get a new device :) either the plus or the mythical c40 or whatever heh.
where is my comment?
Wow, at&t just keeps getting fatter, gourging on their feast...their own customers.
It shows that they are afraid of Sprint. They know iPhone's contract is coming to an end and that was the only thing attracting new customers, but what those poor saps didn't realize is that a phone is only as good as the carrier signal it rides on and I'm sorry to say, AT&T is laughable at best. Now with Sprint's 4G network coming out, it's going to be worse for ATT. Here's a question: Why release a new iPhone 4G on a network that doesn't support it?
exactly. att barely supports 3g lol. it would only make sense for apple to release its cdma version on sprint and verizon.
The IPhone 4G is just the fourth generation of the phone. Its not going to be 4G capable
And this is why I will stay with Sprint from now on. I had AT&T with an Iphone 3G. Service sucked, I would hardly get service while in San Francisco. I was a Verizon customer for four years and really never had a complaint. Since I have been with Sprint for just about a year I am very happy. Great customer service, call quality and being a premier customer. What more could you ask for.