AT&T announces flexible ETF program

AT&T today announced a new approach to early termination fees (ETFs) that provides greater flexibility for wireless customers.

Beginning on May 25, the company's new and renewing wireless customers who enter into one- or two-year service agreements will no longer be required to pay a single, flat early termination fee. Instead, that fee, which is $175, will be progressively lowered by $5 during each month, every month, for the term of the contract. (The single, flat ETF will continue to apply to new and renewing customers who enter into one- or two-year service agreements prior to May 25.)

The company noted that it continues to offer options for those customers who do not want term commitments or ETFs, including buying a phone at full price and going on a month-to-month service plan, providing their own GSM phone and using an AT&T provided SIM card or using one of their GoPhone prepaid wireless plans.

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8 Comments

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AT&T is one company that would not get my business even if they offered their services for free. Its as simple as that.

(sweetsam said @ #4)
AT&T is one company that would not get my business even if they offered their services for free. Its as simple as that.

any particular rational to this or you want to just leave us hanging?

While Rogers Wireless here upped their ETF to $400 last year. Ahh, Ted Rogers...holes shall never be the only part of your wallet.

So in a 2 year contract it never gets down to zero, it is a STEP in the right direction but I think it should be pro-rated accordingly especially with a 2 year contract.

I read verizon has started dropping their fee by half after the first year but no idea what they do after that first year. I think it was also retroactive to existing customers.

Go down to zero? That would create a termination fee that can be less than the monthly fee which is a bigger loss to the company.

(christracy said @ #2)
So in a 2 year contract it never gets down to zero, it is a STEP in the right direction but I think it should be pro-rated accordingly especially with a 2 year contract.

I read verizon has started dropping their fee by half after the first year but no idea what they do after that first year. I think it was also retroactive to existing customers.

At the final point, there would be $35 left (if my quick math was correct) -- at that point the contract period is over anyway.