AT&T's Prorated ETFs Are Now In Effect

Here's some excellent wireless contract news for AT&T subscribers.

The wireless carrier has formally announced that the change ion their wireless contract policy regarding ETFs or early termination fees has been implemented. Customers who have signed up an agreement or wireless contract with AT&T starting on May 25 will be charged with a prorated early termination fee should they choose to end or terminate their contract or agreement before it expires.

Here's the official press release issued by AT&T:

More Flexibility for Wireless Customers

San Antonio, Texas, March 31, 2008

AT&T (NYSE:T) today announced a new approach to early termination fees (ETFs) that provides greater flexibility for wireless customers.

Beginning on May 25, the company's new and renewing wireless customers who enter into one- or two-year service agreements will no longer be required to pay a single, flat early termination fee. Instead, that fee, which is $175, will be progressively lowered by $5 during each month, every month, for the term of the contract. (The single, flat ETF will continue to apply to new and renewing customers who enter into one- or two-year service agreements prior to May 25.)

The company noted that it continues to offer options for those customers who do not want term commitments or ETFs, including:

* Buy a phone at full price and go on a month-to-month service plan.
* Bring your own compatible GSM device. With this option, you can buy a SIM (subscriber identity module), slip it into the back of the phone, and select a month-to-month service plan.
* Choose one of AT&T's GoPhone prepaid wireless plans.

I know that a lot of customers have been waiting for this to happen. I have read countless of complaints about the high cost of these fees. Early termination fees can be a pain especially if you have signed several contracts. This decision by AT&T should make it easier for customers to shift to a different carrier.

You can tune in to the AT&T News Room for more press releases regarding wireless contract and important announcements.