If you switch from the iPhone you will get charged a termination fee.

[nmprofessional]

I went to my local AT&T store to see if I can get a Windows Mobile 6 based smartphone so I can get a password app and docs app on a phone ASAP without waiting for a SDK from Apple.

If I do want a new phone an AT&T, I will need to pay the termination fee as the iPhone contract is totally separate from all other phones they carry.

Oh well. If I have to pay a termination fee, maybe it will be back to Sprint again.

 

[mikec#IM]

I went to my local AT&T store to see if I can get a Windows Mobile 6 based smartphone so I can get a password app and docs app on a phone ASAP without waiting for a SDK from Apple.

If I do want a new phone an AT&T, I will need to pay the termination fee as the iPhone contract is totally separate from all other phones they carry.

Oh well. If I have to pay a termination fee, maybe it will be back to Sprint again.

So the terminiation fees are, in theory, for subsidized phones, however most carriers will give you a special plan if you sign a 2 year agreeement, regardless of whether you take the phones or not.

It's all about the money; they want to capture the customer acquisition costs - either through you staying a customer for 2 years, or through the termination fees.

I predict within 5 year, locked contracts and terminiation fees (large ones) will have gone the way of the dodo. The effect is to limit competition, which sucks for customers.

 

[Kupe#WP]

So the terminiation fees are, in theory, for subsidized phones, however most carriers will give you a special plan if you sign a 2 year agreeement, regardless of whether you take the phones or not.

It's all about the money; they want to capture the customer acquisition costs - either through you staying a customer for 2 years, or through the termination fees.

I believe the OP was trying to remain an AT&T customer, not leave AT&T. Instead, AT&T told this iPhone-owning customer, "You can switch phones, but to cancel your iPhone for another AT&T phone, you need to pay an ETF." In a nutshell, the bottom line appears to be:

1. You pay the full retail price for an iPhone (no subsidy).
2. You pay an ETF if you drop your AT&T contract to leave AT&T.
3. You pay an ETF if you switch phones from and iPhone to another AT&T phone (and probably incur another contract with ETF).

Wow - Mr. Jobs gets the iPhone owners coming and going doesn't he?

This is probably due, in part, to AT&T's guarantee to Apple of over $400 on every iPhone sold over the life of the contract (in addition to the initial purchase price cost) from the monthly fees.

 

[mikec#IM]

I believe the OP was trying to remain an AT&T customer, not leave AT&T. Instead, AT&T told this iPhone-owning customer, "You can switch phones, but to cancel your iPhone for another AT&T phone, you need to pay an ETF." In a nutshell, the bottom line appears to be:

1. You pay the full retail price for an iPhone (no subsidy).
2. You pay an ETF if you drop your AT&T contract to leave AT&T.
3. You pay an ETF if you switch phones from and iPhone to another AT&T phone (and probably incur another contract with ETF).

Wow - Mr. Jobs gets the iPhone owners coming and going doesn't he?

This is probably due, in part, to AT&T's guarantee to Apple of over $400 on every iPhone sold over the life of the contract (in addition to the initial purchase price cost) from the monthly fees.

Kupe,

You're right; I misread the post.

Yes, In this case, intras-ATT transfer, Apple/ATT rapes you.
Apple should just say, "Here, we are selling iPhone plus unlimited service for two years for $5,000. Prepaid, no refunds. have a nice day."

That way, no monkey business. People know what they are getting. And I'm sure the 1M+ people would still sign up, and Apple/ATT would get their $5B right away...

 

[Kupe#WP]

Yes, In this case, intras-ATT transfer, Apple/ATT rapes you.
Apple should just say, "Here, we are selling iPhone plus unlimited service for two years for $5,000. Prepaid, no refunds. have a nice day."

The least they could do is provide free condoms.

 

[mikec#IM]

The least they could do is provide free condoms.

Hell, I'd be happy if they at least had the decency to give a reach-around...

 

[techiegirl]

Can somebody else confirm this?

I left the iPhone for a Tilt a month ago. No ETF for me.

 

[nmprofessional]

Can somebody else confirm this?

I left the iPhone for a Tilt a month ago. No ETF for me.

I would be interested in knowing how. I have had my iPhone longer than a month, and it is "... outside the 30-day return policy ..." as per the Manager.

How long did you have yours? Did you cancel your iPhone plan and just transfer (port) over your phone number to the Tilt?

 

[techiegirl]

I had my iPhone for a little over 3 months.

I did not switch my voice plan. I purchased a Tilt and then changed my $20 data add-on to the $40 PDA plan.

Maybe that's the difference.

 

[nmprofessional]

@techiegirl:

Thanks for how you did it. I was wondering if I could do the same thing, since when existing AT&T users bought an iPhone they just added on the $20 iPhone specific data plan. Going in reverse "should be" what you did and should be possible. I mean isn't that the benefit of a SIM card?

The Manager may have been new. I will try what you did techiegirl.

MANY THANKS!
Dave

P.S. techiegirl... Did you pay the full price of the device or the subsidy price?

 

[techiegirl]

I just took the sim card from my iPhone and put it in the Tilt. Then I called c/s and told them to switch my iPhone data plan to the PDA data plan because I bought a Tilt. They did not mention anything about a cancellation fee.

As far as I'm concerned, we only get cancellation fees if you switch to a different carrier.