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AT&T: Screw the Customer Plan!

The Giant Noodle

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I would NEVER get AT&T.... EVER!!! They dont care about their customers it seems


We understand that cell phones are cheap because phone companies make it up by getting customers in two-year contracts, but charging $325, as AT&T does, to terminate a contract early seems like highway robbery. Not only does AT&T charge an early termination fee (or ETF) if a customer defects to a competitor, but also if the customer wants to switch to another AT&T calling plan -- or even buy a fancier phone. "For customers who enter into new two-year service agreements in connection with the purchase of our more advanced, higher end devices, including netbooks and smartphones, the ETF will increase to $325, and be reduced by $10 for each month that you remain with us as a customer during the balance of your two-year service agreement. After that, the ETF will no longer apply," AT&T said when it announced the June 1 change. In other words, thanks for buying our phone, now give us $325 more to use it and then we'll hold your money ransom so you don't go off to one of our competitors. AT&T also charges a lot more than other companies for its family texting plans.

5. Early Termination Fees | 8 Most Outrageous Fees | Comcast.net
 

d0gbreath

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I expected this to happen. AT&T got into the cell market late by buying Cingular, which was failing miserably due to atrocious customer support.
 

American

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All of these companies charge some or all of these fees.
 

Glinda

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And this is why I have a TracFone. :thumbs:
 

molten_dragon

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I would NEVER get AT&T.... EVER!!! They dont care about their customers it seems


We understand that cell phones are cheap because phone companies make it up by getting customers in two-year contracts, but charging $325, as AT&T does, to terminate a contract early seems like highway robbery. Not only does AT&T charge an early termination fee (or ETF) if a customer defects to a competitor, but also if the customer wants to switch to another AT&T calling plan -- or even buy a fancier phone. "For customers who enter into new two-year service agreements in connection with the purchase of our more advanced, higher end devices, including netbooks and smartphones, the ETF will increase to $325, and be reduced by $10 for each month that you remain with us as a customer during the balance of your two-year service agreement. After that, the ETF will no longer apply," AT&T said when it announced the June 1 change. In other words, thanks for buying our phone, now give us $325 more to use it and then we'll hold your money ransom so you don't go off to one of our competitors. AT&T also charges a lot more than other companies for its family texting plans.

5. Early Termination Fees | 8 Most Outrageous Fees | Comcast.net
This is not at all unusual for cell phone companies. Verizon does the exact same thing, but only for smartphones in their case (normal phones I think the fee is only $150). There's a good reason for it too.

Many of the fancy new smartphones (i.e. the iphone, the droid phones) cost around $600. The phone companies sell them to you for $200 with the expectation of recouping the (rather large) loss they take selling the phone to you in what you pay for the plan over time. If you cancel the plan before your contract is up, are they just supposed to eat that $300-$400 loss that they took for selling you the phone so cheap?
 
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