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AT&T matches Verizon's $650 offer to swap carriers
AT&T has announced that it'll hand you up to $650 in credit should you choose to switch from another mobile carrier. If you're prepared to jump through the various hurdles, you'll be entitled to a pre-paid gift card equal to the value of your ETF or device balance. In addition, the network is letting you pair the deal with its buy one, get one free offer, enabling you to grab two shiny new devices at the same time. The offering is the latest in a long series of credit offers, with Verizon pushing its own offer to $650 last December.
Sprint tempts AT&T and Verizon users by cutting their bills in half
When you're getting beaten down by your larger and smaller rivals, it's time for desperate measures. And there's certainly a hint of that with Sprint's latest offer for AT&T and Verizon customers: Switch over to Sprint starting on December 5 and your cellphone bill will get cut in half. The carrier will also cover early termination fees at up to $350 per line (something it started doing earlier this year). This isn't just a temporary discount -- Sprint says you'll keep the lower price as long as you stick with your plan. But of course, there's a bit of a catch. You'll have to lease your new Sprint phone or buy it outright, you won't be able to take advantage of contracted pricing. You also better make sure you love your plan, as any future upgrades will nuke the discount. You can count this generous offer as yet another "bold action" by Sprint's new CEO Marcelo Claure, who laid off 2,000 employees last month in an attempt to revitalize the ailing carrier. [Photo: JeepersMedia/Flickr]
T-Mobile will soon pay you to switch from a smaller carrier
Some Americans have no doubt been tempted by T-Mobile's willingness to pay early termination fees for switchers, but the offer has many catches -- you have to jump ship from a major carrier, for one thing. However, the network tells Re/code that its requirements will soon loosen up. It plans to extend the deal to cover the fees from more than a dozen smaller providers, including US Cellular. Magenta will also accept more devices for trade-ins, and they won't even have to be in working order; if a broken phone is your excuse to switch, you may still get some cash. It's too early to say whether expanding the incentive program will have any meaningful effect on T-Mobile's bottom line, but it's hard to complain about getting a better bargain.
Daily Update for January 9, 2014
It's the TUAW Daily Update, your source for Apple news in a convenient audio format. You'll get some of the top Apple stories of the day in three to five minutes for a quick review of what's happening in the Apple world. You can listen to today's Apple stories by clicking the player at the top of the page. The Daily Update has been moved to a new podcast host in the past few days. Current listeners should delete the old podcast subscription and subscribe to the new feed in the iTunes Store here.
Ting announces $100,000 ETF payout fund, will reimburse switchers up to $350 per line
If the only thing keeping you from making a switch to low-cost mobile provider Ting is the pain of early termination fees, we've got a bit of good news: come February 1st, you can tell your current carrier to get lost. Ting has just announced that it's set aside $100,000 for all those willing to call it quits with their current provider. For every cancelled line, Ting will reimburse switchers with up to $350 in non-expiring credits, which will be applied to all future service with the contract-free provider. This means that, depending on your usage -- and the amount of your ETF -- you could effectively score more than a year of free mobile service from Ting. You'll find all the details at the source link, but here's the important bit to commit to memory: "Anyone that activates within the month of February and that submits their final bill within 30 days of their activation date is eligible for the ETF payout." Now, the only question that remains is whether you're willing to tell your current provider, "It's not me. It's you."
Sprint bumps early termination fee to $350, wants to play with the big boys
Never count the little guy out. It seems Sprint's ramping up its game in preparation for the possible three-way carrier brawl lurking just out of view. The Hesse-led company revealed a coming change to its ETF for customers with smartphones, tabs, laptops and netbooks. Beginning September 9th, Sprint will charge a $350 termination fee -- the same as Verizon and AT&T -- that will be pro-rated depended on the number of months left on a subscriber's contract. The charge is a hefty step-up from its prior fee of $200, clearly signaling to the marketplace that it demands to be seen as a contender.
Telus makes it simple to terminate contracts, replace your feature phone
Taking a page from its own playbook, Telus Mobility has extended its Clear and Simple Device Upgrade program to the logical conclusion of contract termination. Now, if a customer chooses to cancel their service, they must pay only a $50 administrative fee and the remaining portion of their phone's subsidy -- it could still result in a lot of loonies, but the amount decreases monthly according to a fixed schedule. Similar to Rogers, Telus offers its customers early upgrades by allowing them to pay this unrecovered subsidy and commit to a new contract. To make the process even easier (and more tempting), the carrier is now including this magical number with its monthly bills. So, as you dream of getting cozy with a new Nexus S or Optimus Black -- or ditching the Telus network -- just follow the break for the PR.
Verizon Wireless killing one-year contracts on April 17th, assumes you won't even care
Okay, so maybe you'll care, but you'll still opt for the two-year option once your contract is up. That's according -- more or less, anyway -- to a Verizon Wireless spokesperson, confirming to our inquiry this afternoon that the carrier's one-year contract option will be eliminated on April 17th. The reason, as you might expect, revolves around historical customer preference. That's a fancy way of saying that most customers prefer the stout hardware discounts that are available with a lengthier two-year agreement, and barring that, they can still choose month-to-month, prepaid or a rival. Not that VZW would encourage the latter, but hey -- America's about options, man.
T-Mobile offers Sidekick owners half off Samsung phones or waived ETFs
Well, we knew T-Mobile was promising an "easy transition" for Sidekick owners once Danger's long-running cloud service was shut down later this spring, and we now finally have the details on exactly what that transition will entail. According to a letter sent to Sidekick owners and obtained by TmoNews, the carrier will be offering either fifty percent off "select" Samsung phones purchased on a new two-year contract, or a waived early termination fee between March 31st and May 31st for those that prefer to just pack up and go elsewhere. Hit up the source link below to read the complete letter if you haven't already received one yourself.
Verizon loses ETF class action lawsuit, ordered to pay $21 million
Congratulations Verizon, you're the latest wireless provider to lose a class-action early termination fee-related lawsuit! It's a dispute that's been circulating in courts since 2008, and while the settlement was agreed upon quickly, there were a few lingering appeals that have taken this long to get cleared up -- and not in VZW's favor. The issue at hand was the company's $175 flat early termination fees, behavior that has proven legally naughty again and again when the same fee is levied regardless of whether you were one month or 20 months into your contract. Each customer named in the suit will receive approximately $87.50 for their troubles, a total of $21 million Verizon will have to pay out. That's a bit more than AT&T got hit with back in January, but a whole heck of a lot less than Sprint's massive $73 million fine.
Verizon's FiOS TV expands its contract free options
Any geek who can get FiOS, has FiOS; but there are plenty out there who live in a area with the all fiber service and don't subscribe. We're sure there are plenty of really lame reasons not to switch, but not wanting to sign a two-year commitment isn't one of them. For whatever reason most don't realize that Verizon's FiOS service has always offered contract-less service, but the catch was it came out a premium -- about $20 a month. Well Verizon has been trying out something new in Florida and has decided to expand it to the rest of its markets -- and even some that are moving to Frontier. The new deal is you get the same price as those who want to sign a contract, $99 for the triple play, but are only guaranteed that price won't go up for a year. If you want two years locked in at that price, then you can sign a contract, of which you'll have 30 days to change your mind before you're committed to a $350 pro-rated ETF. We'll leave you to the math, but if you're like us it isn't a matter of if you'll sign up, but instead of which plan you'll choose.
AT&T: upgrade to iPhone 4 up to six months early
So look, we know the dilemma you're in. You nabbed that iPhone 3G or 3GS a little late in the game, and now you've got to wait until December in order to snag the iPhone 4 at a discounted rate. Lucky for you, Apple and AT&T have worked to give folks like you a little leniency, with existing AT&T users able to upgrade to the iPhone 4 "up to six months early." In other words, if your current iPhone contract expires at any point in 2010, you're now eligible to grab an iPhone 4 at $199 (16GB) or $299 (32GB) so long as you agree to stay faithful to a carrier you may or may not loathe for another two years. Good thing you've got until the 24th to really think it over. Update: Good news, addicts! AT&T just pinged us to clarify that so long as your upgrade date is anytime in 2010, you're now eligible to spend an additional two years paying dues to AT&T. In other words, a fair amount of you will be able to buy one of these at contract price on day one. The full statement is after the break, along with AT&T's full pricing release.
EVO 4G launch day antics: Sprint's computers overwhelmed, Radio Shack listing CDMA iPhones?
You might imagine that we're getting a pretty wild variety of EVO 4G-related tips today, seeing how it's launch day and all -- but a couple really stood out for us: Sprint's activation system is apparently buckling under the pressure, an issue that's giving us nightmarish flashbacks to iPhone launches of days gone by. We've even heard reports of poor shoppers being "turned away" when reps are stymied by the situation. A wildly successful product is both a blessing and curse, is it not? One corporate store clerk says Sprint's system is now entirely down, and employees are being forced to write receipts by hand. "We have sold out (and pretty fast at that), but can't do anything at this point, not even a bill pay," he adds. We've gotten multiple tips saying that Radio Shack now lists a $400 early termination fee in its contract for the iPhone on Verizon and Sprint. Our guess is that this is just some generic verbiage, not a sign of an impending CDMA launch, but you never know. One tipster said his EVO came with a Samsung microSD card, rather than a SanDisk. We don't know what to make of that, as it was far too late for HTC to head off storage bugs at the pass. Keep us updated with your launch day travails, folks! [Thanks to everyone who sent these in]
FCC offers 'simple' 'tips' for avoiding pesky early termination fees
The government is just about the last place we'd look for helpful pointers on much of anything, much less when shopping for a new phone -- but that didn't stop the FCC's Consumer Task Force from whipping up a PDF of things you can to do prevent yourself from getting burned with a multi-hundred dollar early termination fee when buying the handset of your wildest dreams. There's nothing in here that isn't obvious to a seasoned phone buyer -- buy the phone at full price instead, ask about a trial period, look into proration, and so on -- but it goes without saying that these are the kinds of tidbits average consumers should know before setting foot in the store. Perhaps the more interesting thing about this effort on the FCC's part is that it indicates the feds haven't forgotten about the stink it made about rising ETFs not long ago -- and AT&T's move to hop on the bandwagon can't be helping to smooth things over in Washington. Anyhow, go get your learn on before some seedy carrier sales rep takes advantage of you, won't you?
AT&T nearly doubles iPhone early termination rates
AT&T announced yesterday a new "carrot and stick" pricing plan for early termination fees (ETF) of cellphone contracts, beginning with new contracts starting June 1st. The carrot is that for new two-year agreements or upgrades on what they refer to as "basic and quick messaging phones," the ETF will be reduced from $175 to $150 and be further reduced by $4 for each month of the contract. Well, that's very nice of them, but it probably doesn't affect anyone reading this post. The stick is that for anyone using higher-end devices such as smartphones, including the iPhone, the ETF will nearly double from $175 to $325 and reduce by $10 for each month the contract ages. Now don't get scared, since this is only for new or upgrade contracts starting June 1st and doesn't apply to anyone with a current contract. That is, unless you're up for renewal and make the mistake of buying a new two-year contract.
AT&T follows Verizon, jacks up ETF on netbooks and smartphones
There's the good kind of follow-the-leader, and then there's this. While the world cheered as all four major US wireless carriers implemented prorated early termination fees, we can all hang our heads accordingly for this one: AT&T has just followed Verizon Wireless' march into the dark, evil corners of contractland by adjusting ETFs higher for netbooks and smartphones. In an email sent out to select customers, the carrier notes that beginning on June 1st (that's less than a fortnight away), customers who select "advanced, higher-end device[s], including netbooks and smartphones, will have an ETF of $325, reduced by $10 for each month during the balance of the service agreement." That's up significantly over the $175 ETF that affects all of AT&T's handsets today, though still $25 less than VZW's plan. The silver lining -- if you could call it that -- comes with this point: customers "who are buying basic and quick messaging phones will have a lower ETF of $150, reduced by $4 for each month during the balance of the service agreement." Naturally, existing contract customers won't see any immediate change, but you can bet you'll be nailed with the new terms once you head in this summer to pre-order that iPhone 4G. The full memo is posted after the break -- so much for "rethinking possible," huh? Update: AT&T has published an "open letter" explaining the changes. Thanks, Daniel! [Thanks, L.]
Sprint rolls out new 30 day 'money back guarantee' trial, claims it's not a promo
Every so often, an American wireless carrier will toss out a no-holds-barred 15 or 30-day money back guarantee, likely initiated to spur customer walk-ins, and in turn, boost the adoption rate. Sprint, however, is sick and tired (but mostly tired) of playing such games, and it has today announced a new "Satisfaction Guaranteed or Money-Back" program that it has no current intentions of ever nixing. We spoke to Sprint this morning regarding the news, and a spokesperson affirmed that it will be in place for the foreseeable future, with no expiration date already dialed up in the background. The new deal (which starts tomorrow, all kidding aside) enables any customer to open up a new line of Sprint service for 30 days; if they aren't feeling it, they'll get "reimbursed for the device purchase and activation fee, get the early termination fee waived, get a full refund for service plan monthly recurring charges incurred and get all associated taxes and Sprint surcharges associated with these charges waived." We'll confess -- that's pretty darn thorough, but do you seriously expect to return that EVO 4G? No, no you don't.
Verizon, AT&T, Sprint, T-Mobile, and Google all respond to FCC's ETF inquiry
All of the players roped into the FCC's early termination fee inquiry -- T-Mobile, Sprint, AT&T, Verizon, and Google -- have met the Fed's February 23 deadline for responding, and needless to say, you could destroy a small forest with the amount of paperwork that's been sent back to Washington. The majority of the inquiry focused on carriers' ETF pricing structure and whether there are different ETFs involved based on the device a customer chooses, and the subtleties in the differences between answers from different carriers are pretty fascinating. T-Mobile seems resolute that a single $200 ETF is the way to go and emphasizes that its customers can avoid the fee altogether by going with an Even More Plus plan, while Sprint says that it "continue[s] to evaluate the market" with regard to a multiple ETF setup. Google, meanwhile, is quick to note that it's just dropped its $350 Equipment Recovery Fee down to $150, though that amount still effectively represents the only device in T-Mobile's subsidized lineup that commands a grand total ETF greater than $200 upon cancellation -- but it gets even better later on when they get snippy for being lumped in with carriers on the inquiry and remind the FCC that the ERF reduction had been in the planning stages prior to the inquiry being issued. At any rate, they note that the ERF isn't intended as a revenue stream -- rather, it's a way to recoup the losses Google incurs when T-Mobile asks for its commission back if a customer cancels within 120 days (as you might imagine, T-Mobile conveniently fails to mention this point in its own reply). Verizon -- which effectively triggered this whole mess by introducing its two-tier ETF -- basically echoes much of what it said in its last response, a surprising move considering the Commission's general displeasure with it, so it'll be interesting to see what kind of reaction it garners this time around. AT&T takes perhaps the most pragmatic approach through most of its response, answering the FCC's questions very matter-of-factly, but goes into a great deal of depth rationalizing early termination fees at the tail end and takes the opportunity to remind everyone that they've offered both commitment-free month-to-month and prepaid service for many years. Something tells us this isn't the last we've heard on the subject, but for the time being, check out everyone's responses in the galleries below (more after the break). [Thanks, Dan P.] %Gallery-86339% %Gallery-86341%
Google's Nexus One 'equipment recovery fee' slashed to $150, still a pain
So the good news here is that Google appears to have heard the cries for help, having taken a chainsaw to its brutal $350 "equipment recovery fee" that had been lumped on top of T-Mobile's $200 ETF for subsidized Nexus One contracts canceled in the first 120 days. The bad news, though, is that it still exists at all -- a hairy precedent for an industry being watched with eagle eyes by the FCC right now. The company has knocked $200 off the fee, bringing it down to $150; in other words, if you break your contract, you'll pay the same ETF that Verizon now charges on its "advanced devices." Whether that was a deliberate move to let 'em say that they're no more expensive than Verizon is unclear, but let's be honest: $350 is extreme, $550 was highway robbery. At least we're going in the right direction.
AT&T settles ETF case for $18m
Hey, if you're a New Jersey AT&T subscriber and you paid a flat-rate ETF between January 1, 1998 and November 4, 2009, you've got a tiny bit of $18 million coming your way. That's the settlement amount AT&T's agreed to in this latest ETF class action -- as usual in these cases, it's far cheaper for AT&T to just throw out some cash than it is to fully litigate this thing, especially with the FCC breathing down its neck. Expect individual settlements to be relatively minor, while all the lawyers receive platinum underpants trimmed with only the finest jewels. Update: It's for all AT&T subs, not just the kids from the Shore. Update 2: AT&T just sent us a statement about the settlement -- the carrier wants to highlight that it's the old ETFs that are involved here, and not the new pro-rated ones that we hate just as much. Check it: We strongly deny any wrongdoing, and no court has found AT&T Mobility committed any wrongdoing regarding these fees. However, we have agreed to settle to avoid the burden and cost of further litigation. It's important to note that the litigation involves old early termination fee policies of the old AT&T Wireless and Cingular. In 2008 we introduced a new, more flexible early termination fee policy, in which we pro-rate the ETF if you are a new or renewing wireless customer who enters a one- or two-year service agreement. Cool -- now let's talk about how customers who pay full price for handsets should pay a lower monthly fee that doesn't include an equipment subsidy. That's a policy we could totally get behind. [Thanks, David]
