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AT&T Raising Smartphone ETF From $175 To $325
Starting on June 1
by Karl Bode Friday 21-May-2010 tags: legal · prices · competition · fcc · business · consumers · wireless · cellular
AT&T has confirmed that they'll be raising their early termination fee (ETF) for smartphones from $175 to $325 starting on June 1. AT&T's move mirrors Verizon's decision to double smartphone ETFs last November (to $350), which drew some ire from the FCC. "The idea is, and we think that it's fair approach, that if you spend less on a device, your early termination fee should be less," says AT&T. "If you spend more, your early termination fee should be more." In an "open letter to their valued customers," AT&T notes that lower-end phone users will actually see their ETF reduced by $25:

Click for full size
Beginning June 1, 2010, we will reduce the ETF in new and upgrade two-year service agreements for all customers who are buying basic and quick messaging phones. Whether you are new to us or upgrading handsets, the ETF will decrease to $150 from $175, and be reduced by $4 for each month that you remain with us as a customer during the balance of your two-year service agreement.

The details are slightly different should you buy a smartphone:

For customers who enter into new two-year service agreements in connection with the purchase of our more advanced, higher end devices, including netbooks and smartphones, the ETF will increase to $325, and be reduced by $10 for each month that you remain with us as a customer during the balance of your two-year service agreement. After that, the ETF will no longer apply.

U.S. Senator Amy Klobuchar, who has supported several bills taking aim at high ETFs, wasn't particularly impressed, judging from a statement:

"AT&T is forcing its customers to pay a price to get their freedom, and that’s not right," said Klobuchar. "Too often consumers find out after committing to a multi-year contract that their wireless service doesn’t meet their needs, and changing your wireless provider shouldn’t break the bank. Once again wireless providers have shown that they would rather use arbitrary fees than network and service quality to keep customers. It is time for Congress and the Federal Communications Commission to act to ensure competition and consumer protection in the cell phone marketplace."

Of course the change only applies to new contracts, and if users want to buy the phone at full (often ridiculously inflated) price they can avoid contracts and ETFs altogether. The move comes just as AT&T and Apple prepare to announce a new HD video-centric iPhone incarnation in early June. Should rumors of an additional LTE or EVDO Verizon iPhone in late 2010 or early 2011 be true, AT&T could obviously net a little extra cash from defectors as they flee the AT&T network.

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Cheese
Premium
join:2003-10-26
Naples, FL
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Didn't Verizon....

Recently get in trouble for this same crap?

gdm
Premium,MVM
join:2001-06-15
Mchenry, IL
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Re: Didn't Verizon....

Nothing really came of it. Politicians acted like they would do something but as usual nothing.
Youngjm

join:2002-04-01
Ada, MI

Re: Didn't Verizon....

It represented more revenue to Verizon that could be taxed.

Nightfall
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said by gdm:

Nothing really came of it. Politicians acted like they would do something but as usual nothing.
I agree. Its disgusting thats for sure. I thought that i read somewhere that there was an investigation going on. I don't know if anything ever came about from it though or if its even going on.
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DarkLogix
Texan and Proud
Premium
join:2008-10-23
Baytown, TX
kudos:3

4 edits
in my opinion it should be as follows
1. etf = actuall phone cost less the upfront cost

2. etf lowers by 1/24th of the original ETF per month (or 1/12th for 1 year agreements) or change it up to git rid of the etf after 1/2 of the agreement time)

3. on non-subsidised phones lower the monthly cost by some across the board amount (possibily equal to 1/24th of the cheapest phone that would require the plan)

4. the option to pay the etf at any time to buy the phone out right and if done would lower the monthly bill by the amount that #3 states

with these 4 your etf would be plenty fair, people that buy outright would save some, and paying the etf would mean you fully own the phone

also to add to this

5. at the time that the etf is paid the carrier must provide unlock codes so that if the user wants to use the phone on another carrier they can since at this point the user fully owns the phone and shouldn't be limited in this way
thedragonmas

join:2007-12-28
Albany, GA
kudos:1

Re: Didn't Verizon....

that unlock code should be provided at the end of contract as the system stands now, but its not, and good luck getting it when you call and ask for it, even tho legally its YOUR phone once you complete the contract.

ericn32
meh
Premium
join:2009-09-23
Costa Mesa, CA

Re: Didn't Verizon....

AT&T will give unlock codes to customers in good standing who ask for it about 90 days into the contract or so. Say you're traveling internationally and want to use a foreign SIM, and they should give you the code.

DarkLogix
Texan and Proud
Premium
join:2008-10-23
Baytown, TX
kudos:3

Re: Didn't Verizon....

I know they will they have given the codes to me a couple of times

but in the case of lets say the iPhone they can't (thats a problem) and many people don't know so I think at time in which the phone is fully paid that unlock info should be required to be given to them

I've never had a problem been with AT&T over 4 years and currently own a Nexus one so ETF is a non-issue for me but I see how it could effect others

also even though they normally can give the code theres something off about their systems (one phone I used to use they couldn't find the imei in their database and if it happened to me I'm sure its happened to others) so if a requirement to send out the code and info at time of full payment was in place then it would be better

and getting the code from them can be hard at times (it depends on who you talk to)

ericn32
meh
Premium
join:2009-09-23
Costa Mesa, CA

Re: Didn't Verizon....

True, I know France requires its carriers to unlock GSM devices after contracts expire.
fiberguy
My views are my own.
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I agree with you on 1 and 2 but disagree on 3 and 4. Phones and service are sold separately.

You have the option to pay the ETF anytime as well... always have.

However, I think that you should have the unlock code at ANYtime... not just in 2 years.. ANYTIME. You're ALWAYS buying the phone, it's just a matter of you buy it up front, or in time of service with the contract. You own the phone, period. If you don't pay, you're going to be bound to pay the price. You don't pay, your credit will be affected, etc. and you do risk the chance of being sued for the balance of your bill although it rarely happens. (but more people should be sued when they don't pay their bills... the more that don't pay, the higher the services, fees, etc. are to everyone else eventually)

But honestly.. yea.. the unlock code should be the customer's from day one.. it's THEIR phone in the first place. And, as the carrier says, equipment and services are sold separately.. with that said, you own the phone and the carrier should NEVER have a right to lock the phone. That's like buying a new car at a dealer and them locking you out of the hood until it's paid for.. or never unlock it.

MovieLover76

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given the price for most smartphones these days I'm sorry but this is fair, you are signing a contract in order to get a cheaper phone, it's that simple, if you don't want a contract buy a phone retail and then buy service, no contract or etf.

People do have the option but they want their subsidized phone and to leave whenever they want, you can't have both.

Their are plenty of things that AT&T and Verizon are guilty of ripping us off on this isn't one of them to me
sonicmerlin

join:2009-05-24
Cleveland, OH
kudos:1

Re: Didn't Verizon....

said by MovieLover76:

given the price for most smartphones these days I'm sorry but this is fair, you are signing a contract in order to get a cheaper phone, it's that simple, if you don't want a contract buy a phone retail and then buy service, no contract or etf.

People do have the option but they want their subsidized phone and to leave whenever they want, you can't have both.

Their are plenty of things that AT&T and Verizon are guilty of ripping us off on this isn't one of them to me
Even if you bring your own phone you pay the same price as someone on a contract. You're being ripped off by being forced to pay the "subsidized" price for a phone that you already paid for in full. Do you not see how this is equivalent to extortion?

Gbcue
P.E.
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Santa Rosa, CA
kudos:8

Re: Didn't Verizon....

said by sonicmerlin:

said by MovieLover76:

given the price for most smartphones these days I'm sorry but this is fair, you are signing a contract in order to get a cheaper phone, it's that simple, if you don't want a contract buy a phone retail and then buy service, no contract or etf.

People do have the option but they want their subsidized phone and to leave whenever they want, you can't have both.

Their are plenty of things that AT&T and Verizon are guilty of ripping us off on this isn't one of them to me
Even if you bring your own phone you pay the same price as someone on a contract. You're being ripped off by being forced to pay the "subsidized" price for a phone that you already paid for in full. Do you not see how this is equivalent to extortion?
Not on T-Mobile. There are plans specific (and cheaper) for those who bring in their own phone or purchase their phones outright (no subsidy).
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thender
Screen tycoon
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Buying an unlocked phone unsubsidized is highly discouraged since it will not have 3G capabilities on any other network but its intended one.
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icp1
Premium
join:2000-10-13
Saint Louis, MO

buy your own

eh you can buy your own phone and have no etf still
chimera

join:2009-06-09
Washington, DC

Re: buy your own

Except in this case you pay the fee upfront if you don't leave. If no ETF meant a lower contract price this would make sense, but it doesn't. So you either pay an earlier termination fee or pay a pre-termination fee. Either way you lose.

icp1
Premium
join:2000-10-13
Saint Louis, MO

Re: buy your own

how is purchasing a phone for what it actually costs a "pre-termination" fee?

jmn1207
Premium
join:2000-07-19
Ashburn, VA
kudos:1

E-WTF?

Will this ETF only apply to those that get a smartphone at a significant discount? Can you buy a phone at full market price and still have it activated under the same plan, completely waving any ETF?

Linklist
Premium
join:2002-03-03
Longport, NJ
kudos:5

1 edit

Re: E-WTF?

said by jmn1207:

Can you buy a phone at full market price and still have it activated under the same plan, completely waving any ETF?
YES!

»www.att.com/gen/press-room?pid=17951
Of course, if you prefer not to enter into a term commitment, we offer the same great selection of devices at their full retail price with no term commitment or ETF
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Lone Wolf
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USA
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This Lady Is Nuts

quote:
"AT&T is forcing its customers to pay a price to get their freedom, and that’s not right," said Klobuchar.
Who is forcing people to sign contracts with ATT?
Don't people read their contracts when they sign up?
She says "freedom" like the people are slaves and that's nuts.

I say:
quote:
Don't sign a contract until you've read all the provisions. If you think the ETF is too high, then sign with another carrier.
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C0deZer0
Oc'D To Rhythm And Police
Premium
join:2001-10-03
Tempe, AZ

Re: This Lady Is Nuts

said by Lone Wolf:

quote:
"AT&T is forcing its customers to pay a price to get their freedom, and that’s not right," said Klobuchar.
Who is forcing people to sign contracts with ATT?
Don't people read their contracts when they sign up?
She says "freedom" like the people are slaves and that's nuts.

I say:
quote:
Don't sign a contract until you've read all the provisions. If you think the ETF is too high, then sign with another carrier.
For some, that is simply not an option. There are still many places in the states where only one of the major carriers get any service at all, or where one type of phone can still work when no other brand of phone works.

Prime example is the store I currently work at. As soon as you step in the doors, absolutely NO GSM phones work in it at all. Yet strangely enough, signal for CDMA and iDen phones gets through (as evidenced by what few people I ask that do have a working signal using either Verizon or Sprint, etc). If you need to call home to ask someone what to pick up, you're kinda boned if you have AT&T or T-mo or some other GSM variant. And I'm sure there are buildings where it's the reverse that is true.

in like situations, it basically is a matter of having to choose a provider that can get a signal where you live and work, or have no phone service at all. I in my home have pretty much had to forgo landline service in order to save money... so it's either have a cell phone, or have no form of vocal communication, which is important when you have family or friends that you simply cannot contact any other way.
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Van
Premium
join:2009-07-08
New Orleans, LA

1 edit
said by Lone Wolf:

quote:
"AT&T is forcing its customers to pay a price to get their freedom, and that’s not right," said Klobuchar.
Who is forcing people to sign contracts with ATT?
Don't people read their contracts when they sign up?
She says "freedom" like the people are slaves and that's nuts.

I say:
quote:
Don't sign a contract until you've read all the provisions. If you think the ETF is too high, then sign with another carrier.
There are people like myself who rely on the iPhone for EVERYTHING from work to personal issues to other things. Yes, I have had a Storm and other phones....I can only get by with the iPhone. So, the option is quite clear and that is that the iPhone is what allows me to get through the day the best.

Just b/c it is in the contract doesn't make it right and if we are going to stop all talk unfair-or-not simply b/c it is in a contract, this forum will go blank quite quickly.

pnh102
Reptiles Are Cuddly And Pretty
Premium
join:2002-05-02
Mount Airy, MD

Shrug

So don't pay the ETF. Problem solved.

Linklist
Premium
join:2002-03-03
Longport, NJ
kudos:5

Re: Shrug

said by pnh102:

So don't pay the ETF. Problem solved.
Yes, get your credit rating dinged for walking away and not honoring contract terms.
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pnh102
Reptiles Are Cuddly And Pretty
Premium
join:2002-05-02
Mount Airy, MD

Re: Shrug

said by Linklist:

Yes, get your credit rating dinged for walking away and not honoring contract terms.
If one doesn't engage in the actions that would bring about an ETF being charged then this won't happen.

I don't get how ETFs are even an issue in this day and age.
--
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Linklist
Premium
join:2002-03-03
Longport, NJ
kudos:5

ETF's should go to zero by end of contract

ETF will decrease to $150 from $175, and be reduced by $4 for each month that you remain with us as a customer during the balance of your two-year service agreement.

ETF will increase to $325, and be reduced by $10 for each month that you remain with us as a customer during the balance of your two-year service agreement.
$4 x 23mos = $92 meaning you would still owe a $58 ETF for canceling 1 month before contract is up.
$10 x 23mos = $230 meaning you would still owe a $95 ETF for canceling 1 month before contract is up.

Of course they can put anything in a contract they want(and I say that is their right despite what FCC says). But if they don't want a big black eye for marketing purposes, the ETF should reduce each month so that the ETF is zero($0) at the end of a 2 yr contract.

So on a:
$150 ETF, the fee should drop $6.25/mo & on a
$325 ETF, the fee should drop $13.55/mo

That won't satisfy people who think there should be no ETF's at all(but that isn't fair to the carrier subsidizing phones), but it would seem a lot fairer to the average cell phone service buyer.
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Mr Matt

join:2008-01-29
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More Wireless Bologna!

Unfortunately there are so few smartphones sold at retail that there is no price competition in smartphone sales. The postpaid carriers set outrageous prices for handsets in order to justify high ETF's.

It is amazing that the prepaid carriers are doing well selling handsets below the price that postpaid carries are charging. Buy a Samsung Smooth on a postpaid contract and you will wind up paying a small fee initially and then be responsible for a ETF of $175.00 if you cancel. Buy a prepaid smooth for $10.00 to $20.00 and if you are tired of using it, you can stop using it with no questions asked.

No one is bothering to look at the cost per minute that postpaid customers are charged when they exceed their plan minutes. Why does Verizon or AT&T charge postpaid subscribers $0.45 per minute if they exceed their plan minutes when the same companies charge their basic prepaid subscribers $0.25 per minute. I am not forgetting that AT&T offers roll over minutes.

DarkLogix
Texan and Proud
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Baytown, TX
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Re: More Wireless Bologna!

1. due to roll overs many have plenty of minutes
2. because they can
3. look at #2 again

I know that its near impossible for me to go over with all my roll over I could talk for a month nonstop and might not run out depending on how they work nights and weekends when a call starts in the day and goes to night

TransitMan
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Dayton, OH
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Re: More Wireless Bologna!

said by DarkLogix:

1. due to roll overs many have plenty of minutes
2. because they can
3. look at #2 again

I know that its near impossible for me to go over with all my roll over I could talk for a month nonstop and might not run out depending on how they work nights and weekends when a call starts in the day and goes to night
From personal experience.
I have a family plan with roll-over. I also pay for the privilege of early 7PM nights to keep the roll-over from being eaten alive by teenagers.
One instance, my step-daughter started a conversation just before 7PM that lasted 2.5 hours. When I got the bill (even though we have roll-over and the early night and weekends), the time spent on that call was dinged to the roll-over bucket and split between the bucket and early 7PM.
So if you want to talk to someone and not use your bucket of minutes, wait until after 9PM (7PM in some cases) before you make the call or you will get dinged for your time spent on the call.
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DarkLogix
Texan and Proud
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join:2008-10-23
Baytown, TX
kudos:3

Re: More Wireless Bologna!

yep thats what I thought it would be

now if you started at say the morning end of the night would that pull it all from nights or start harvesting anytime/rollover?

TransitMan
Premium,MVM
join:2000-09-05
Dayton, OH
kudos:1

Re: More Wireless Bologna!

Since I am not up and talking at that time, I can only presume that if you start before the "Daytime" bucket of minutes kicks in, it should pull from the Night/Weekend unlimited. (YMMV)

DarkLogix
Texan and Proud
Premium
join:2008-10-23
Baytown, TX
kudos:3

Re: More Wireless Bologna!

ya same here I've never tried it (i don't even remember when nights end (according to the terms))
gworkman7

join:2005-10-18
Laveen, AZ

E-Bay

Just buy a slightly used phone on E-Bay and avoid the contracts. Pretty simple.

C0deZer0
Oc'D To Rhythm And Police
Premium
join:2001-10-03
Tempe, AZ

Re: E-Bay

said by gworkman7:

Just buy a slightly used phone on E-Bay and avoid the contracts. Pretty simple.
And have no warranty, someone else's bodily fluids all over the electronics, and have it go out on you in a week after paying off the credit card bill. FANTASTIC!
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David
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Re: E-Bay

yea but you didn't pay the $325 ETF.. you have to pick and choose your battles. The only other option would to be to pay for the phone outright. Google already tried this and failed miserably at it.

So should anyone be surprised that we still like "subsidizing a phone" we are the necessity of our own evil folks. We have no one to blame but ourselves in this one.

Simba7
I Void Warranties

join:2003-03-24
Billings, MT
said by C0deZer0:

And have no warranty, someone else's bodily fluids all over the electronics, and have it go out on you in a week after paying off the credit card bill. FANTASTIC!
Bullcrap. I bought a 6800 on eBay in perfect condition, not to mention the high capacity Mugen Battery. Both in perfect and almost new condition.

I still have the phone, which now has quite a bit of wear and tear.. But it still works great. It's survived drops and kids..
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w0g
o.O

join:2001-08-30
Springfield, OR

ETF and cellphone prices don't seem to relate to actual cost

I know they won't do this, but to justify such a high ETF the phones should be completely free then, but they won't be. If you look at the cost for technology these days you'll notice it would seem impossible for even the best phones to cost or be worth the $600 dollar price tags, these things just don't cost that much anymore.

They're really starting to gouge the consumer.
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w0g
o.O

join:2001-08-30
Springfield, OR

Re: ETF and cellphone prices don't seem to relate to actual cost

What I'd love to see is the ETF's be made illegal, making the only option to cellphone companies to sell the phones outright full price. This would force them to sell the phones at a reasonable price because no one is going to pay $600 for a phone like they try to make people do out of contract. They really want to corner the customer anyway they can, high prices without contact, high ETF with...
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MovieLover76

join:2009-09-11
kudos:1
Take a look at unlocked smartphone prices from Europe, most andrioid phones are over $600 and your average iPhone is $800 - $1000 actually we are getting good deals on our subsidized phones
sonicmerlin

join:2009-05-24
Cleveland, OH
kudos:1

Re: ETF and cellphone prices don't seem to relate to actual cost

said by MovieLover76:

Take a look at unlocked smartphone prices from Europe, most andrioid phones are over $600 and your average iPhone is $800 - $1000 actually we are getting good deals on our subsidized phones
Don't know where you're getting your prices but they're screwed up.
fenix_jn

join:2006-12-28
Miami, FL

End of iPhone exclusivity??

Could this be done to avoid customers leaving the carrier confirming the rumors about Apple dropping the agreements with ATT?
Skippy25

join:2000-09-13
Hazelwood, MO

Separate the Two

They claim these ETF's are to protect them from subsidized hardware, which is total BS. It is more about locking in customers, then it is about hardware cost.

If it is about the hardware then the only contract a customer should be required to sign should be the one financing the cost of the phone. Then there should be a TOS for the service that the customer agrees to which has no term bindings.

Just out of curiosity after you fulfill the ETF period to cover the discount of the phone, do they then lower the cost of your service? What about if you bring your own phone? If it is truly to cover the hardware, then shouldn't my service cost me $325 less if I own the hardware already?
SunnyD

join:2009-03-20
Madison, AL

If you don't like it...

...modify it or write your own contract.

Nothing is stopping you from modifying the contract as you see fit prior to agreement, just as nothing is stopping them from agreeing to your provisional changes. Just make sure you get a copy of the agent-signed agreement with appropriate notation of provisional changes so you have something to fall back on when you have to take them to court.
Neosum
Premium
join:2000-06-03
Oakland, CA

1 edit

It's reasonable and fair

I think it's a fair fee given that honest people who buy a subsidized phone and sign a 2yr contract don't plan on breaking their obligation without a justified reason. They do have a fine print that outlines conditions where the etf would be waived such as moving to an area that att does not have service.

I don't know about other smartphones, but for the iphone I do know that they have a high resell value. Someone can buy their $199 model and sign a 2yr contract. That phone can be sold for $300+ two years later. The etf prevents people from buying these subsidized phones and canceling their service and still profit from reselling the phone on ebay or craigslist.

With an etf of only $175, the total cost of the iphone would be $375 + tax if the person canceled his account right away. That same phone will resell for $500-$700 on ebay or craigslist, thus putting extra cash into their pockets.

Raising the etf would prevent such transactions.
tmc8080

join:2004-04-24
Brooklyn, NY

no competition

twiddle dumb and twiddle dumber... why shouldn't at&t copycat what Verizon does anti-competitively. at&t clambors after comcast customers like a turtle towing a pile of bricks so why not wireless customers as well?
VansHSI

join:2005-01-29
America

I'm not surprised

You walk into the store and get a blackberry for $49.99. Wait 30 days and port your number to some pre paid carrier. Pay the ETF of $175 and then sell the phone on ebay or craigslist for $350. Meanwhile the carrier is out atleast $100 based on what they paid for the phone in the first place.

How is that fair?

This is just covering the carrier's butt and not allowing the customer to game the system.

Verizon increased their ETF when they began their BOGO offerings. They found people would buy a nice smart phone for $49 bucks and get the second free. Then cancel their contract for both phones, pay the ETF and sell both online and make a killing.

David
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Re: I'm not surprised

said by VansHSI:

You walk into the store and get a blackberry for $49.99. Wait 30 days and port your number to some pre paid carrier. Pay the ETF of $175 and then sell the phone on ebay or craigslist for $350. Meanwhile the carrier is out atleast $100 based on what they paid for the phone in the first place.

How is that fair?

This is just covering the carrier's butt and not allowing the customer to game the system.

Verizon increased their ETF when they began their BOGO offerings. They found people would buy a nice smart phone for $49 bucks and get the second free. Then cancel their contract for both phones, pay the ETF and sell both online and make a killing.
that's probably part of the reason why verizon and AT&T raised them. After all what business sense does it make to take a loss like that?
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airtouch25

join:2007-05-22
united state
It's not just about the hardware subsidy. That's the BS they've fed you all these years.

Even Verizon admitted, after a bit of FCC probing, that they use money recouped from ETF's towards the cost of doing business....... namely marketing, advertising costs and political lobbying.

Someone has to help offset all those "Droid Does," ads. Someone has to help offset the media onslaught of Verizon's "There's A Map for That," with AT&T's counter punches about having the "fastest 3G network." Someone has to pay the hundreds of millions of dollars in lobbying efforts they make to pass legislation that benefits them and kill legislation that threatens them.

Sure telco apologists will just tell you not to sign a contract with these carriers but these carriers are clearly double dipping. They have high profit margins as it is based upon the monthly fees they recoup so everything else is just additional sources of revenue.

They make up the $$$ they lose on hardware subsidies, standard cost of doing business ie: overhead etc on the monthly bills. Do a few customers scam them? Sure there are always people like that but not enough to break their piggy banks.

AT&T, like Verizon are telco minded and will charge any fee they can get away with. I'm not hating on their business models just pointing out the obvious. Count on the Verizon's and AT&T's of the world to lower the cost of wireless voice calling which will cause all the press to give them brownie points while raising data prices, limiting choices and upping ETF's at the same time.
sonicmerlin

join:2009-05-24
Cleveland, OH
kudos:1
said by VansHSI:

You walk into the store and get a blackberry for $49.99. Wait 30 days and port your number to some pre paid carrier. Pay the ETF of $175 and then sell the phone on ebay or craigslist for $350. Meanwhile the carrier is out atleast $100 based on what they paid for the phone in the first place.

How is that fair?

This is just covering the carrier's butt and not allowing the customer to game the system.

Verizon increased their ETF when they began their BOGO offerings. They found people would buy a nice smart phone for $49 bucks and get the second free. Then cancel their contract for both phones, pay the ETF and sell both online and make a killing.
And how many people actually do this? Do you have a %? Whatever it is I'm sure it's tiny given the complicated logistics of your plan. Punishing all your customers over a select few's mischief? Please.

How about we eliminate altogether, forcing companies to sell phones at full price.

en102
Canadian, eh?

join:2001-01-26
Valencia, CA

Better yet ....

Why don't carriers make ETF based on the percentage of the cost of the device ?
That would be a 'true' ETF based on the cost of the device, and not some tiered rate.
--
Canada = Hollywood North

airtouch25

join:2007-05-22
united state

Re: Better yet ....

That would make sense if the ETF only covered the hardware subsidy but unfortunately we know it doesn't.

HonestEnd

join:2006-03-01
Sterling Heights, MI

I have an even better idea!

How about we stick to our contract if we sign it? If you don't want to pay the ETF then DON'T sign the contract. It really is that simple. This is like people entering a contract with a loan company with an APR of 21% and then complaining about how its not fair. YOU agreed to the terms when you bought the device, now toughen up and follow the terms. No one is putting a gun to your head telling you to buy the phone with a contract. People really need to get back to reality.
sonicmerlin

join:2009-05-24
Cleveland, OH
kudos:1

Re: I have an even better idea!

said by HonestEnd:

How about we stick to our contract if we sign it? If you don't want to pay the ETF then DON'T sign the contract. It really is that simple. This is like people entering a contract with a loan company with an APR of 21% and then complaining about how its not fair. YOU agreed to the terms when you bought the device, now toughen up and follow the terms. No one is putting a gun to your head telling you to buy the phone with a contract. People really need to get back to reality.
Perhaps you need to get back to reality. Even if you bring your own phone you pay the same price as someone with a "subsidized" contract. How is that fair?
wayne8888

join:2005-10-16
Baltimore, MD

Has anyone mentioned enforced unlimited data plans?

Forgive me if this has been mentioned earlier but the cell phone carriers always cry about the cost of the unsubsidized smart phone in defense of ETF increases. They conveniently forget about the profit (often to the tune of $30 per month for ATT and Verizon) that they make by forcing the cell phone buyers to add unlimited data to their plan. Many folks in the past said "no thank you..... the wifi is good enough". Now they don't have a choice since the carriers (especially ATT to lessen the network burden) love you to use Wifi but want you to pay for the data to boot. Verizon used to have very limited numbers of smart phones with wifi but now put wifi on all new smart phones since now they have nothing to lose with the enforced data plans.

HonestEnd

join:2006-03-01
Sterling Heights, MI

Re: I have an even better idea!

What does purchasing the phone outright have to do with the monthly cost of service? Just because you bought your own phone DOESN'T mean you get a discount. ETF's are there to cover the subsidizing of the phone. Monthly service costs are there to pay for the upkeep and maintenance of the network. Hard concept? With your reasoning, you should get a discount on food at a restaurant for bringing your own plate and fork. Again...get back to reality.
Neosum
Premium
join:2000-06-03
Oakland, CA

2 edits
said by sonicmerlin:

said by HonestEnd:

How about we stick to our contract if we sign it? If you don't want to pay the ETF then DON'T sign the contract. It really is that simple. This is like people entering a contract with a loan company with an APR of 21% and then complaining about how its not fair. YOU agreed to the terms when you bought the device, now toughen up and follow the terms. No one is putting a gun to your head telling you to buy the phone with a contract. People really need to get back to reality.
Perhaps you need to get back to reality. Even if you bring your own phone you pay the same price as someone with a "subsidized" contract. How is that fair?
Correction. If you bring your own phone, there is NO contract. You are at liberty to cancel anytime with no fees other than your pro-rated monthly plan costs.

said by wayne8888:

Forgive me if this has been mentioned earlier but the cell phone carriers always cry about the cost of the unsubsidized smart phone in defense of ETF increases. They conveniently forget about the profit (often to the tune of $30 per month for ATT and Verizon) that they make by forcing the cell phone buyers to add unlimited data to their plan. Many folks in the past said "no thank you..... the wifi is good enough". Now they don't have a choice since the carriers (especially ATT to lessen the network burden) love you to use Wifi but want you to pay for the data to boot. Verizon used to have very limited numbers of smart phones with wifi but now put wifi on all new smart phones since now they have nothing to lose with the enforced data plans.
Just in case you didn't already know, ALL companies are in the business to make money. We as consumers have a choice not to use their service if we don't agree or refuse to pay their fees for the service they provide.

c64

join:2008-07-31
Lansdale, PA

coincidence???

Raising ETF weeks before the new iphone release? Is it me or is this another sign of verizon iphone release. Making it harder for customers to jump ship?
--
9929
Neosum
Premium
join:2000-06-03
Oakland, CA

Re: coincidence???

This has nothing to do with preventing att customers from jumping ship. The new higher etf will only affect new contracts signed on or after June 1, 2010. Current att customers are exempt unless they sign a new contract after the said date.

As for the iphone for verizon, anything's possible.

thender
Screen tycoon
Premium
join:2009-01-01
Brooklyn, NY
kudos:1

An excellent anonymous comment from BGR blog

»www.boygeniusreport.com/2010/05/···t-896993

quote:
What AT&T was really trying to say……

Dear Uninformed Customers, Industry Apologists and Blind Fanboys of our retail establishments:

Recently Verizon Wireless has implemented a new higher ETF policy and has gotten away with it.

We waited a little while to see if the FCC would pressure them otherwise but since this didn’t happen we decided to mirror VZW’s pricing policies like we normally do. You can stop with the “monkey see monkey do,” comments now. Ha ha.

Please note that we must work together to convince the gullible that this is a good policy for them. We have to convince them that we pay much more than we really do for mobile hardware so in their minds the higher ETF is justified. We don’t want to give these suckers the impression that in reality we make all that up plus insane profits on the monthly recurring fees alone.

Folks, we don’t want to be forced to do away with ETF’s and charge customers full price for handsets. We know that if we do that, we’ll be forced to compete with other carriers and manufacturers on hardware price and you know what happens when we have to compete right? LOL Mr. and Ms. Shareholders don’t like it when we talk dirty like that!!! Then the smart customers will start wanting discounts on their rate plans (like T-Mobile’s EM +) if they pay full price for their own phones yada yada yada. We need to stop this before they catch on.

Lastly, that 100+ million dollar advertising war with Verizon was really expensive. We figure we’ll use any extra proceeds from those who defect to absorb those costs. Just like all the junk “unfees,” we charge our customers to offset the cost and risks of doing business the padded ETF’s are crucial in getting our top executives the extra bonus’ we promised them.

Thanks for your continued blind loyalty to our wallets.

Jim

--
Macbook, & BlackBerry repair in NYC

michieru
Premium
join:2009-07-25
Miami, FL
Reviews:
·Comcast Business..
·AT&T U-Verse
·Clearwire Wireless
·AT&T Southeast

...lol

I own a T-mobile Equinox and I have a AT&T SIM installed and my service works just fine, the only thing I am obligated to do is pay for my service. I paid for my phone upfront at $170.00 and I have no issues with my service.

I don't need to worry about ETF or contracts of any kind and I am paying less than I was with T-mobile and my coverage has improved. My phone does not work with AT&T 3G network but I still have EDGE without a problem whatsoever. I might upgrade to a W760i that does but because I don't care about data what I have is sufficient. People who chose to sign a contract to get a Blackberry Bold for free that costs around 600.00 retail is getting a bargain for 325-350 dollars.

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