AT&T's prorated ETF is live for new / renewing customers

We really, really hope you didn't ink a contract with AT&T over the weekend. If so, casually close your browser and attempt to avoid this post forever. Right on cue, AT&T has implemented its consumer-friendly prorated early termination fee, which enables new and renewing subscribers to have their $175 ETF drop by $5 each month they stick with the carrier and pay their bill. Yeah, the burn rate isn't exactly the greatest -- after all, you'll still owe $60 if you cancel with a month remaining -- but it's certainly a move in the right direction.

[Via phonemag]

[booticon @ May 27th 2008 7:07PM]

ETF or not, if you cancel your contract with a month remaining, you're just a silly goose.

[Totalfixation @ May 27th 2008 7:13PM]

From your comment, your saying if there is a early termination fee with only 1 month left on the contract your a silly goose, but you go on saying "or not." Meaning if there is "no" early termination fee with 1 month left to go, your still a silly goose? I get what your saying but just pointing out to how you said it. :smiles:

[Ross @ May 27th 2008 7:31PM]

haha, right on! i agree :)

[Totalfixation @ May 27th 2008 9:02PM]

btw i meant you're

[ronzo @ May 27th 2008 7:28PM]

ugh...

[mark smith @ May 27th 2008 7:32PM]

well the good news is you have 30 days to cancel with no ETF. The bad news is you're unlikely (highly unlikely) to get the same number if you re-sign up under the new terms.

[CraigJ @ May 27th 2008 8:00PM]

If you've only had the number for 30 or fewer days is that really a problem? Personally I just use GrandCentral anyway...

[doerrfan @ May 27th 2008 7:39PM]

Its about damn time something, at least something happened to this nazi termination system.

[omoks @ May 27th 2008 7:43PM]

Must just be me but I've never had an issue paying ETC. I paid Sprint their $200 ETF way back in 2001 when I left them, paid T-Mob their $200 2 years ago and will gladly pay Sprint their $200 when I leave them in June/July to go back to T-Mob for the Diamond.

Whats interesting is that for each of these companies, each time I told them I was leaving they threw the "well you know you'll be assesed a $200 ETF", and I'm usually like yeah I know.

[hiko36 @ May 27th 2008 7:51PM]

I can think of a few things I would rather spend $200 on than an ETF... which reminds me, I think Helio has been trying to get a hold of me...

[deyanimay @ May 27th 2008 7:53PM]

you sure have a lot of extra money why don't you send some my way, jk.

[Mobile Phone Diva @ May 27th 2008 10:28PM]

I think many complaints are due to the ETF being really high, so high they prevent many from terminating. There's often legit reasons for cancelling. Like lack of coverage, job changes, etc. Having to just forfeit $200 isn't good for many people's budgets.

Although Sprint was so bad, I paid it because I was very unhappy with them. But not everyone can do that.

[z @ May 27th 2008 7:49PM]

The entire point of most of these plans is to subsidize the phones, so to expect to get everything back isnt really realistic unless you are willing to pay the extra money on the phones themselves as well.

What I really want is better plans with no contract when you have your own phones.

[Reader @ May 27th 2008 7:59PM]

It's amazing how you can't even own a cell phone without essentially taking out a loan and being in debt.

[Marc @ May 27th 2008 8:03PM]

You can't own a phone without going into debt? What about prepaid phones? You buy it off the shelf in a blister pack and it belongs to you. You could just throw it away as you left the store and nobody would ever care. :)

[Ryan Karolak @ May 27th 2008 8:23PM]

In addition to prepaid phones there's also flex-pay from T-Mobile... you can cancel anytime without a ETF. You just have to pay for the upcoming month ahead of time.

[Californian @ May 27th 2008 8:30PM]

No Friggin' WAY!!! I literally just opened a new account with them on Friday! Well, I don't plan on canceling anyway - Sprint is so horrible I would never go back there.

[Josh @ May 27th 2008 8:32PM]

This is NOT a prorated ETF. Proration divides the fee in equal increments over the course of the contract, so you would only owe $7-$8 if you canceled the contract in the last month.

This is simply an incrementally decreasing fee.

/splitting hairs and semantics

[Reid @ May 27th 2008 10:18PM]

Verizon claimed that they instituted a declining ETF, before I even became a customer.

I definitely paid a full $175 to kick them to the curb a year later.

[absurdio @ May 28th 2008 2:35AM]

As a gloomy Verizon customer, I'm sortof dejected to see AT&T more or less copy THE ONLY GODDAMN THING VERIZON DID RIGHT.

My ETF now (after foolishly resigning...) is still around $120. *sigh*

[Mobile Phone Diva @ May 27th 2008 10:33PM]

Good point!

[Mobile Phone Diva @ May 27th 2008 10:34PM]

That was a reply to Josh.

[Mobile Phone Diva @ May 27th 2008 10:35PM]

Sorry, reply button needs to be clicked twice now for some reason.

[mark @ May 28th 2008 12:19AM]

That's not a step in the right direction. About four years ago I signed a two year contract with cingular and the cancel fee was $240 but every month it was dropped by $24

[Dee @ May 28th 2008 2:30AM]

The ETF drop of $5 for AT&T started last week. I noticed the contracts I printed for customers started expressing that before any formal announcement from AT&T.

[Frankenstein Black @ May 28th 2008 11:48AM]

They could just do away with subsiding phones all together, but I don’t think us U.S. types would go for that (we’ve been “phone subsidy spoiled” since the late 80’s). We want cool new phones with azz loads of bells and whistles CHEAP, so it’s understandable that they would want an ROI, yes?

A possible fix as I see it is a hybrid of what we do here and what they do in EU (even though subsidy is becoming an increasing practice there as well). THE FIX: Implement a coupon/rebate model instead. Pay full price up front (with no contract). Then upon completion of period X you get back what would in effect be the difference between the paid retail amount of the device and the subsidy contracted price. This could be presented as another option. The problem? We spoiled types want the cheap subsides price with NO contract! Dream on...

[byebyebirdie19 @ May 28th 2008 1:48PM]

I spoke to ATT&T yesterday, and the person said that the new policy applies to contracts started in May (but not April, when I got my iPhone). This must be because if you started in the last 30 days you can just get out of your deal and start over.

[akito @ May 28th 2008 7:37PM]

I used to work in the industry. As an employee, I had to pay full retail price minus a dog bone of a discount, which for a several hundred dollar phone is not a whole lot. With that being said, I thank those that do not complain about the ETF. But for those people who do jump ship at the next "flashy" phone one year into their contract and complains that it's too much money, or that the company is out to get them keep in mind please that you signed a "CONTRACT" and as such there is a result if you do not wish to fulfill your end of the agreement. For those that are not using enough of their mental capabilities or do not have enough responsibility to think things through and manage their life as it should be, stop your crying. In case you didn't know it not cheap being stupid.

[diamond @ Aug 13th 2008 7:53PM]

What about when the cell company does not fullfill its end of the contract, ie.. constant dropped calls and the inablity to even understand what the other person is saying. That can get mighty frustrating after a while. If you sign up for cellular service and you are fullfilling your end by paying for the service, I don't think it is too much to ask for the cell company to fullfill there end of the contract!!! Consumers are trapped into paying for crappy sevice with no recourse. I have three lines with AT&T. That will be $525 for me to cancel!!!