AT&T Ups Smartphone Early Termination Fees

[JMcEntegart]

AT&T has jacked up its early termination fees, nearly matching fees currently in place for Verizon customers.

AT&T Ups Smartphone Early Termination Fees : Read more

 

[wonspur]

they need the money right?

 

[nforce4max]

Chins of modern slavery : nickles and dimes.

Greedy ba$t^%d$

 

[house70]

if they would put their money in infrastructure, there wouldn't be so many early terminations... duh!

 

[Lan]

If they actually used the money to upgrade their network then it might actually be justified. But we know that won't happen.

 

[Azimuth01]

I'm sure that people leaving AT&T because of their network is one of the reasons this is happening, but I think there's more to it. I have to wonder if the increase in fees is to offset the increase in price of some of the new smartphones. Most of us know that the cell phone companies don't charge full price for a new phone when you buy one on a contract. The rest of the price is recovered in the monthly fee. New phones are much more advanced then they were just a generation ago, and I'm sure the price that the carriers pay per phone reflects that. In order to keep the initial cost for us consumers the same, the rest of the cost has to be recovered somehow...

 

[Guest]

Too many people cancelling on their iPhone plans for Android phones, I'm guessing.

 

[shadowryche]

Most people terminate because they're broke and can't afford the monthly expense. I think the FTC should ban ETF's. If the company really wants the phone back sure they should be allowed to take it back. I've seen far to many people here in Michigan loose a car or something because they got laid off, and their cellular company had shown up with a court officer and took their car.

 

[Montezuma]

[citation][nom]Azimuth01[/nom]I'm sure that people leaving AT&T because of their network is one of the reasons this is happening, but I think there's more to it. I have to wonder if the increase in fees is to offset the increase in price of some of the new smartphones. Most of us know that the cell phone companies don't charge full price for a new phone when you buy one on a contract. The rest of the price is recovered in the monthly fee. New phones are much more advanced then they were just a generation ago, and I'm sure the price that the carriers pay per phone reflects that. In order to keep the initial cost for us consumers the same, the rest of the cost has to be recovered somehow...[/citation]

Unless you suck at math(which seems to be the case here), you know that the price people pay over the life of a two year contract is far more than the value of more than two of any phone you can currently purchase with any of these providers. These companies are increasing the fees because they know that no one will stop them. They could increase it to $2,000 USD and people would continue to pour in.

The fact of the matter is that Verizon, AT&T, and all of the other companies are the same. They overcharge customers for sub par service, yet customers continue to flock to these companies. I certainly do not blame these companies, but I do blame the idiot customers. Until people vote with their wallet, these companies will continue to take advantage of their customers.

These companies could complete forgo contract and they(the companies) would still make a killing. If Verizon, AT&T, T-Mobile, and others would work to provide the best service(customer service, coverage, value for money spent, etc), then the sky would be the limit for profits and the customer would also win. Instead, everyone continues to look for shortcuts and "the easy way" to make a quick buck.

 

[False_Dmitry_II]

Sure, but what's to stop someone from getting something from one network, hacking it then leaving with it? Now it's unlocked and they can use it with other carriers. Then the cost of that phone is never covered by anything.

That's precisely the reason that it's there. It's a contract, you aren't supposed to just leave. There is some profit but they also have to pay for the upkeep of towers they already have etc.

They pay for the phones to get people to sign the contract in the first place. Otherwise people couldn't afford $600-800 phones then to pay monthly to use it.

 

[omnimodis78]

How do you know he/she sucks at math? And if you're such a genius, why don't you try to point out the solution instead of the obvious. What do you propose the "idiot customers" do? What company does not rip us off? What options do we have? If you know of a non-profit making cell phone company that will not rip me off at every turn, then please advise.

 

[captainnemojr]

Raising prices and upping fees for the same sh*tty service...brilliant!

 

[Hilarion]

Trying to stop the exit stampede I see.

People may be willing to pay the price (or take them to court) to get rid of them.

 

[cknobman]

Its sad that our society supports this kind of corporate behavior but its just the way it is.

People are greedy and oblivious too anything that contradicts what they want. Sure the cellular companies rape the general public but as long as people keep coming in and buying their products and services they support the system.

Its not this way just for cellular providers either, its this way across our entire society. People get rich of others greed. No one needs a smart phone to survive but everyone wants one to make their lives easier. Instead of choosing to survive without one until the prices and terms are reasonable greedy, idiotic, and moronic people flock in by the millions to buy whatever the cellular providers tell them too.

Its never gonna change and well only see the gap between the rich and poor get bigger and bigger as they feed off human greed.

 

[totheshed]

[citation][nom]Lan[/nom]If they actually used the money to upgrade their network then it might actually be justified. But we know that won't happen.[/citation]

True but they would have to spend 5+ billion. Money they definitely do not have.

 

[soo-nah-mee]

Well one more nail the coffin of the possibilty of me switching to a smartphone. I'd love the features, but with the possibility of layoff looming over me, that high of an ETF is too much of a risk.

 

[Pei-chen]

[citation][nom]montezuma[/nom]Unless you suck at math(which seems to be the case here), you know that the price people pay over the life of a two year contract is far more than the value of more than two of any phone you can currently purchase with any of these providers. These companies are increasing the fees because they know that no one will stop them. They could increase it to $2,000 USD and people would continue to pour in.The fact of the matter is that Verizon, AT&T, and all of the other companies are the same. They overcharge customers for sub par service, yet customers continue to flock to these companies. I certainly do not blame these companies, but I do blame the idiot customers. Until people vote with their wallet, these companies will continue to take advantage of their customers.These companies could complete forgo contract and they(the companies) would still make a killing. If Verizon, AT&T, T-Mobile, and others would work to provide the best service(customer service, coverage, value for money spent, etc), then the sky would be the limit for profits and the customer would also win. Instead, everyone continues to look for shortcuts and "the easy way" to make a quick buck.[/citation]
American are breed into thinking there is no alternative to the status quo. It makes them easier to control.

 

[hellwig]

[citation][nom]montezuma[/nom]Unless you suck at math(which seems to be the case here), you know that the price people pay over the life of a two year contract is far more than the value of more than two of any phone you can currently purchase with any of these providers. These companies are increasing the fees because they know that no one will stop them. They could increase it to $2,000 USD and people would continue to pour in.The fact of the matter is that Verizon, AT&T, and all of the other companies are the same. They overcharge customers for sub par service, yet customers continue to flock to these companies. I certainly do not blame these companies, but I do blame the idiot customers. Until people vote with their wallet, these companies will continue to take advantage of their customers.These companies could complete forgo contract and they(the companies) would still make a killing. If Verizon, AT&T, T-Mobile, and others would work to provide the best service(customer service, coverage, value for money spent, etc), then the sky would be the limit for profits and the customer would also win. Instead, everyone continues to look for shortcuts and "the easy way" to make a quick buck.[/citation]

Lol, what's your solution, give up cell phones, move to the woods, grow crops and fertilize them with your own shit? It's not that everyone is too stupid to go somewhere else, there is no where else to go. You said it your self, ALL providers are doing this, there is no alternative, unless you want to go pre-paid, but then you don't get the fancy data phones.[citation][nom]Azimuth01[/nom]I'm sure that people leaving AT&T because of their network is one of the reasons this is happening, but I think there's more to it. I have to wonder if the increase in fees is to offset the increase in price of some of the new smartphones. Most of us know that the cell phone companies don't charge full price for a new phone when you buy one on a contract. The rest of the price is recovered in the monthly fee. New phones are much more advanced then they were just a generation ago, and I'm sure the price that the carriers pay per phone reflects that. In order to keep the initial cost for us consumers the same, the rest of the cost has to be recovered somehow...[/citation]

Only problem is, AT&Ts only big-seller is the iPhone, and Apple won't let AT&T subsidize it, so its a good thought, but completely inapplicable to AT&T.

 

[robcope1965]

I read all this negativity and it cracks me up. we have 5 smart phones, unlimited text, unlimited mobile to mobile and 1500 anytime minutes we never use, not to mention we can use the internet all we want and pay right around 200 USD a month. Oh and we can upgrade our phones once a year and even in rural Texas the service rocks. That would be SPRINT. Haven't had an issue with them in 10 years. So they aren't all bad.

 

[danimal_the_animal]

Ahh

the new and improved customer retention plan.......