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AT&T to Raise Early Termination Fee for iPhone

The Wall Street Journal reports (subscription required) that as of June 1st, AT&T will nearly double the early termination fee for customers on smartphone contracts such as for the iPhone, going from $175 to $325. The change, which would apply only to new contracts, appears set to come just prior to the launch of a new iPhone.

I wonder if this means that Apple is getting a larger subsidy for the new phone than before. Maybe the costs of these gen-next devices are such that AT&T is taking a smaller share of the rev, but protecting themselves against cancellations, while keeping the subsidized price of phones relatively stable. Or, they could just be huge d-bags.

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Avatar of M. Jackson Wilkinson

I'm M. Jackson Wilkinson, a technologist, designer, speaker, educator, and writer in San Francisco. I'm the CEO and Founder of WeSprout, which is coming soon. I'm from Philadelphia, went to Bowdoin College in Maine, root for the Phillies, and love to sing.

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