The Wall Street Journal is reporting that starting June 1st (Keep in mind, the new iPhone expected to be released only a week or so later.) will be raising the early termination fee for customers with smartphone contracts from $175 to a flabbergasting $325. This change only applies to new contracts. Again, this is happening […]
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AT&T Increases Early Termination Fee Prior to Speculated Next-Gen iPhone Launch

The Wall Street Journal is reporting that starting June 1st (Keep in mind, the new iPhone expected to be released only a week or so later.) will be raising the early termination fee for customers with smartphone contracts from $175 to a flabbergasting $325. This change only applies to new contracts. Again, this is happening just prior to the expected launch of the next-gen iPhone we’ve heard so much about.

The iPhone is AT&T’s biggest wireless growth driver; however, the company’s contract as Apple’s sole U.S. partner is expected to end over the next year. The loss of exclusivity could enable iPhone customers–particularly those frustrated by the carrier’s network issues–to go to rivals, specifically Verizon Wireless, although high early termination fees could serve as a deterrent.

An AT&T spokesman, however, said the timing of the move wasn’t related to any device.

Reportedly, the U.S. Federal Communications Commission is taking a look into this.

To me, this suggests that AT&T has lost exclusivity with the iPhone. So, AT&T is raising the bar, and making it more difficult to jump shit for Verizon. The case for a CDMA enabled iPhone is looking stronger and stronger everyday.

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