AT&T to Impose US$175 Early Cancelation Fee for iPhone

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Date: Monday, June 25th, 2007, 09:20
Category: iPhone

iphonehand.jpg; border=
You’re looking forward to the iPhone‘s release on Friday.
And you’ve given somewhat consideration to naming your first-born child “iPhone”.
According to an article on boston.com, this might be an expensive choice to get out of.
In addition to spending US$50 million to beef up its wireless network, the Boston Globe has discovered that AT&T plans to charge customers who break their two-year iPhone contracts a US$175 early termination fee. While an early termination fee is somewhat common, these are usually put into place to help wireless providers recoup subsidies and discounts offered to customers agreeing to go with the service.
According to JupiterResearch analyst Michael Gartenberg, who termed the early termination fee “a little odd”, the fee seems like a bid by AT&T to boost its revenues by providing an obstacle to cancelation and hanging onto more affluent customers for as long as possible.
AT&T has yet to disclose how it will handle or charge customers under existing contracts who want to upgrade to the iPhone early and swap out their current plan in exchange of one offered with the iPhone.


iphonehand.jpg; border=
You’re looking forward to the iPhone‘s release on Friday.
And you’ve given somewhat consideration to naming your first-born child “iPhone”.
According to an article on boston.com, this might be an expensive choice to get out of.
In addition to spending US$50 million to beef up its wireless network, the Boston Globe has discovered that AT&T plans to charge customers who break their two-year iPhone contracts a US$175 early termination fee. While an early termination fee is somewhat common, these are usually put into place to help wireless providers recoup subsidies and discounts offered to customers agreeing to go with the service.
According to JupiterResearch analyst Michael Gartenberg, who termed the early termination fee “a little odd”, the fee seems like a bid by AT&T to boost its revenues by providing an obstacle to cancelation and hanging onto more affluent customers for as long as possible.
AT&T has yet to disclose how it will handle or charge customers under existing contracts who want to upgrade to the iPhone early and swap out their current plan in exchange of one offered with the iPhone.

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