May 23 2010

AT&T Raises Termination Fee

AT&T has announced that it is raising its early termination fee (ETF) for smartphones from $175 to $325 starting June 1. Customers who were considering breaking their contracts with AT&T have just one week to decide before leaving AT&T early gets way more expensive.

The hike in this fee has fueled rumors concerning the iPhone’s AT&T exclusivity. Though AT&T insists that the price increase is unrelated, one cannot help but wonder: is Verizon perhaps going to be carrying the iPhone in the near future?

Those who choose to leave AT&T now face an uncertain future because there really is no guarantee that Apple and AT&T are going to let other carriers, such as Verizon, provide service for the iPhone. Even if Verizon does begin to offer iPhone service, it will not be until late June or early July, which means customers hoping to switch would have to go about a month without a phone, which is almost unthinkable in our society. If Verizon does not end up carrying the iPhone, customers will be forced to choose other Verizon phones—luckily, the company does have some great choices out there (my personal favorite right now is the HTC Incredible).

Via PC World, image via PC World.

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