AT&T has confirmed that will be making major changes to its ETF structure on June 1st ahead of the announcement of the iPhone HD. While the carrier insists the changes are not directly related to the pending launch of the device, the changes to the structure coincide with the shift in consumer device choice to smartphones and netbooks, similar to the reasoning given by Verizon Wireless when the carrier instituted a similar increase late last year.
The ETF will go up to $325 for smartphones and laptops from the current $175 rate, with a $10 reduction for each month in the agreement. Non smartphones will now feature a reduced ETF of $150 from $175, with a $4 reduction for each month in the contract. The ETF changes will only apply to new contracts signed beginning June 1, with customers under current agreements unaffected.
Update: AT&T has published a letter elaborating on its reasoning for the changes.
My first reaction was negative, but I think it doesn’t really affect most subs because you can’t get the iPhone on any other carrier.
Maybe they could use the extra revenue to finally get 3G coverage in Pueblo, CO.
Bastards…
Hello FCC ….!?
What happened to the follow up on VZW??
They failed to make an example out of VZW, now all the “me too Geniuses”, will follow this absurdly abusive policy !
Thank You
Jeff, except the persistent rumors that iPhone is headed to Verizon. Leaving customers with iPhones already in a lurch; they have to chose between upgrading and locking into the steeper ETFs, or sit out up to a full two years to upgrade to the next iPhone.
AT&T, like Verizon has realized that no-contract services are becoming more attractive, and that their device niches are starting to collapse. Android will be on prepaid by this time next year in full force.
So if you start out on a dumbphone contract with AT&T, buy an AT&T smartphone off ebay, pop your SIM in (which triggers AT&T to automatically upgrade your data plan to the smartphone data plan), you get mad about that and cancel your account… Do you get hit with a dumbphone ETF or a smartphone ETF?
[…] it could just be a move that is a long time coming. The timing is interesting though, as AT&T increased its ETF just before the introduction of the iPhone 4 and Sprint has recently been rumored to be […]
[…] it could just be a move that is a long time coming. The timing is interesting though, as AT&T increased its ETF just before the introduction of the iPhone 4 and Sprint has recently been rumored to be […]
[…] it could just be a move that is a long time coming. The timing is interesting though, as AT&T increased its ETF just before the introduction of the iPhone 4 and Sprint has recently been rumored to be […]