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AT&T Revamps ETF Policies

Article Comments  26  

Mar 31, 2008, 5:07 PM   by Eric M. Zeman
updated Mar 31, 2008, 5:41 PM

Last year AT&T announced that it would begin prorating early termination fees. In a press release today, AT&T shared more information about how the prorating will work. Current customers and anyone who signs up for service between now and May 24th will not be eligible. Beginning May 25, anyone who signs a new one- or two-year contract will be eligible for prorated ETFs, which will begin at $175 and drop by $5 each month during the length of the contract.



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Apr 9, 2008, 5:43 PM

"pro-rated" early terination fees

I would have had to pay $150 in "pro-rated" early termination fees to at&t, but I avoided that.
I posted my plan on www.adioswireless.com for free. Waited about a week, until I got an interested member to take over my plan. Very easy to do. Paid $19.95 "matching fee". Now I have verizon.

Mar 31, 2008, 5:40 PM

What a novel idea!

We're following the leader, the leader, the leader
We're following the leader wherever he may go
We won't be home till morning, till morning
We won't be home till morning
Because he told us so
Actually AT&T is the largest cell phone carrier in the US, with 70.1 million subscribers.

Mar 31, 2008, 6:47 PM

Whatever, AT&T

This should have been in effect MONTHS AGO, like when Consumer Reports talked about it.

Booo 👿
Oh, I see that you aren't happy about this. I'll just access your account and make sure you have the standard ETF instead of the prorated one.
Consumer reports is such a joke in regards to wireless services. They take such a small sampling of the overall picture. Take a look at the details on the study. Do you really think Consumer reports can cover every carrier in every part of the coun...

Apr 1, 2008, 10:21 AM

You still pay too much...

If you go by the truest definition of "proration" then the term fee should adjust based upon equal amounts spread over contract term. With AT&T's new policy, if you cancel with 2 months remaining you still end up paying $125 Term Fee in a one year and $65 on a two year. The second amount is not that bad, unless you look at the idea proposed above. On a one year and cancelling at month 10 you would only pay roughly $30 and on a two year only about $15.00. They are still holding onto the idea that you have to recoup the device cost. You get less of a discount on a one year so there is less to recoup. Just proof that wireless carriers still hold onto ancient ideas and thoughts long after these have been proven bad business.
Hmm... AT&T doesn't offer one year contracts anymore...

Mar 31, 2008, 6:09 PM

fair practice

Not exactly new or ground breaking but still a good idea and very fair practice in the wireless industry.
It is a good idea, unless you're an existing customer. Seems like this means no ETF for existing customer even when it's time for renewal.
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