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Maybe AT&T noticed that Verizon got away with a dramatic ETF increase earlier this year and figured why not? Who's gonna stop us? As the article mentions it's s
by jsz0 16y ago
Maybe AT&T noticed that Verizon got away with a dramatic ETF increase earlier this year and figured why not? Who's gonna stop us? As the article mentions it's still $25 cheaper than Verizon's ETF. Previously it was $175 cheaper. I can't think of any good reason AT&T would want to undercut Verizon on ETF. I suspect this has more to do with the economy than the day-to-day dynamics of the SmartPhone market. Both AT&T and Verizon are probably seeing a lot of customers not fulfilling their 2 year contracts.
The FCC (or congress if needed) really need to examine this situation. I understand the need for the ETF in the context of a 2 year contract a customer signs but I'm deeply opposed to the lack of transparency on the real value of hardware subsidies and the way the cellular industry punishes people with lack of choice if you don't want to sign a contract. Why does an unsubsidized customer typically pay the same (or more) as a subsidized customer? That's just not fair.
- Retric 16y agoAlso IMO, the ETF should be reduced based on the time remaining in the contract. If you have been a customer for 18 months on a 2 year contract they should have recovered 75% of their phone subsidy. Yet they still charge more than that.
- wmf 16y agoAFAIK all ETFs are now prorated thanks to some saber-rattling from Congress.
- silentOpen 16y agoThis is not true under the current ATT ETF rules. I got a 3GS in January and the rules I agreed to said the ETF dropped by $5/mo.
- Retric 16y agoThey now reduce it by 10$ per month, but still if you compare the discount to the total they still keep 95$ if you break it a month early. (325 - 10 * 23 = 95$)