The Reader

Sent to you by Bill Boulware via Google Reader: AT&T to raise ETF on
smartphones, lower ETF on feature phones via Boy Genius Report by
Andrew Munchbach on 5/21/10



The Wall Street Journal is reporting that AT&T will raise the early
termination fee on its line of smartphones from $175 to $325 starting
June 1st. The move is inline with adjustments made by Verizon Wireless
to their ETF policy last November. The math is pretty simple: a
BlackBerry 9700 at retail is $449 — if you buy the phone for $199 with
new 2-year contract, then cancel for $175, you've just paid $374. Under
the new scheme your price, with penalty, would be $524 ($75 over retail
in this example). The new ETF will not apply to existing contracts,
just those of you who are inking new 2-year deals with the Death Star.
They news isn't all bad [yes it is], as the WSJ went onto say that
feature phone ETFs will shrink by $25 to $150. What do you think? Is
this higher smartphone ETF going to dissuade anyone from putting their
name on another AT&T contract?

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