AT&T to modify Early Termination Fees

In an open letter to customers, AT&T has announced they will be increasing Early Termination Fees (ETF) on smartphones and decreasing them slightly on other phones. AT&T will raise the fee from $175 to $325 on contracts for smartphones as well as netbooks. The ETF will be reduced for non-smartphones to $150 from $175.

These changes will only take effect for new and renewing customers. The ETF will be prorated $10 a month for each month ($4 for non-smartphones) that passes in the two year agreement.

AT&T is stating this increase had no relation to any specific phone and instead states the modifications are in response to the overall cost of smartphones that require a larger subsidy.

You can find the complete letter over at AT&T's website (opens in new tab).

George Ponder

George is the Reviews Editor at Windows Central, concentrating on Windows 10 PC and Mobile apps. He's been a supporter of the platform since the days of Windows CE and uses his current Windows 10 Mobile phone daily to keep up with life and enjoy a game during down time.

  • Ok first Verizon and now ATT. Sprint, please do not follow suit. You can use this to your advantage and advertise your yearly upgrades and low termination fee. It will make it easier for people to join or stay on Sprint.
  • I thought the FCC was actively looking into ETF's??? Must not be any threat if AT&T is doing this now. And WTF is with -$10/month for the duration of the contract - that's only $240.00 at the end, not $325. What's with the other $135...shouldn't it be more like -$16 per month prorated?
  • The FCC is looking into ETF's and there are several pending lawsuits. If it makes AT&T customers feel any better, Verizon's ETF jumped from $175 to $350 late last year.
  • Don't you think they should raise the fee for new contracts and keeping existing contracts with old fees.
  • The new ETF rates only apply to new contracts or renewals of contracts. Unless you buy a new phone at the discounted price the lower fee would apply.
  • HAHAHA ATT is scared of the EVO4g, June 1st is so convenient to lock in potential ship jumpers... however ill be waiting around for the HTC Mondrain running WinPho7 later this year
  • this has nothing to do with the evo (and androids 5% marketshare) and everything to do with the upcoming new iphone.