AT&T to Increase ETF for Smartphone Wireless Contracts

AT&T has become the second major US carrier to increase its ETF in the last several months. Verizon decided to increase its charge for early contract termination for mobile phone contracts last November. Now, AT&T is set to ramp up its early termination fee next month.

The folks at WSJ blew the whistle in this upcoming change in AT&T wireless contract policy. The carrier plans to almost double the fee for terminating a contract for its smartphones and laptops. New contracts signed for smartphones and laptops next month will carry a hefty $325 which will fall by $10 for each month a customer stays in his/her contract. The previous fee was set at $175.

On the other hand, AT&T decreased the fee for its feature phones. Perhaps increasing the fee for these devices will be too much.

The early termination fee for AT&T feature cell phones will be $150 and will fall by $4 for each month a customer stays in his/her contract. The previous fee was also set at $175.

This decision is sure to catch the ire of the FCC. The commission recently questioned carriers about their practices and stated that competition has "dramatically eroded and is seriously endangered by continuing consolidation and concentration in our wireless markets."

Well, see how the market reacts to this new development. Tune in to this blog for more news and updates on US wireless contracts for mobile phones and other devices.