AT&T to charge $175 as cancellation fee for Apple iPhone
June 23rd, 2007 Leave a comment Visited 200 times, 4 so far today
AT&T to charge $175 as cancellation fee for Apple iPhone
Apple is due to launch their Apple iPhone later this month. The phone would be shipped with a 2 year long contract powered by AT&T services.
The telecom giant AT&T has said that the customers would be required to pay a cancellation fee of USD 175 in case they do not want to continue with the 2 year long usage period.
It is common knowledge that all contract based packages has a early cancellation fee. But most mobile phones offered through contracts are highly subsidized. Some of the phones are even offered at no cost as long as the customer continues to pay during the entire period.
Apple iPhone however is different. Customers would be required to pay the complete price of the mobile device and the cancellation fee is high.
AT&T says that they are spending a lot of money on the Apple iPhone promotion and getting customers for the device. And this means that they cannot subsidize the cancellation fee for the device in case customer does not like the phone and the package they are getting.
Michael Gartenberg, vice president of JupiterResearch however admitted that: “I don’t think for most consumers it’s an issue.”
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June 23rd, 2007 at 7:24 pm
(what is this article) I am a cingular customer this policy is standard for all contracts not just the iphone. If people would just not stretch fact to make a new product look bad just because they do not like it or just want to fill up space on the internet.
February 18th, 2009 at 2:57 am
ya….this complaint makes no sense. AT&T gives you a huge discount when you buy the iphone at a 2 yr contract price. Retail is 5 or 6 hundred dollars, and the new 2 yr contract price is $199, so obviously you get the same early termination fee. Otherwise someone could just open the acct get the cheapest plan for 2 months cancel it and keep the iphone at the 3 or 4 hundred dollar discount. How techwhack allows this embarassing “complaint” to stay up is beyond me. Something tells me whoever wrote it is just trying to promo the competitor in some non-slick way or another…