AT&T's Open Letter for ETF Increase

Last may, AT&T decided to change its termination fee to $325 for smartphones and $150 for feature phones. However, the announcement was preceded by leaks that draw the ire of some consumers. To counter this AT&T released an open letter to explain the ETF increase to their "valued" customers.

I know that this open letter is round two months old. However, this might offer some relief and information to consumers who are unaware of the reasons behind the AT&T' early termination fee increase for the best smartphones they can offer.

Here's the AT&T Open Letter:

An Open Letter to our Valued Customers

May 21, 2010

At AT&T, we work hard every day to provide you with a great wireless experience at competitive prices.

One of the ways we do this is to offer you the industry’s leading wireless handsets below their full retail price when you sign a two-year service agreement. In the event you wish to cancel service before your two-year agreement expires, you agree to pay a prorated early termination fee (ETF) as an alternative way to complete your agreement. Of course, if you prefer not to enter into a term commitment, we offer the same great selection of devices at their full retail price with no term commitment or ETF, as well as prepaid GoPhone options.

We are now making changes that will lower the ETF for many customers who agree to new term commitments, and will increase it for others. Current AT&T wireless customers who are within their two-year consumer service agreement or have an existing enterprise service agreement will see no change to their current terms.

Beginning June 1, 2010, we will reduce the ETF in new and upgrade two-year service agreements for all customers who are buying basic and quick messaging phones. Whether you are new to us or upgrading handsets, the ETF will decrease to $150 from $175, and be reduced by $4 for each month that you remain with us as a customer during the balance of your two-year service agreement. After the term commitment is completed, the ETF will no longer apply.

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.

Thank you for being an AT&T customer. We hope you enjoy your AT&T wireless device and service. We appreciate your business and we will continue to work hard to earn it.

That's it for this post. Tune in next week for more news and information on wireless contracts.

The Sprint Free Guarantee for Wireless Contracts

Here's an interesting announcement from Sprint. This was two-months ago dated March 31, 2010. Sorry I missed it so I hope it's too to. Anyway, I think it's good news for consumers as the new "Sprint Free Guarantee" allows subscribers walk away from a wireless within 30 days and not have to pay any sort of fine.

Consumers who terminate the wireless contract within 30 days will money back for the phone. But that's not all. Sprint will also give the activation fee back and refund your entire month’s service including surcharges and taxes. The Now Carrier will also waive associated taxes and Sprint surcharges associated with these charges waived as well as the restocking fee and the infamous early termination fee.

Sheryl Kingstone, Director, Yankee Group comments on the new "Sprint Free Guarantee" wireless contract policy:

"Sprint's new guarantee policy is yet another effort by them to respond to the needs of wireless consumers today. It's giving consumers the transparency they need to best determine whether they are completely satisfied with the services they want from their carrier. Sprint is putting more power in the hands of its customers and helping to create a better experience for them overall."

That's it for this update on Sprint's wireless contract policy. Stay tuned aw we bring you weekly updates, news and opinions on mobile phone contracts.

Settlement Proposal for AT&T Wireless Contract-related Lawsuits

AT&T has proposed some benefits as settlement for wireless contract-related lawsuits. Perhaps after witnessing Verizon paying a substantial sum to a class action suit, the carrier has decided to take pro active actions.

This proposal was made to consumers who sued AT&T for unfair billing practices. A hearing to consider the fairness of the proposed settlement will be held Nov. 15.

AT&T Wireless customers who signed wireless contracts after March 1, 1999 and who submit the appropriate forms may be eligible for the following benefits:

• $8 for mMode data service
• $10 for ENH Discount International Dial
• $8 or a 250 minute AT&T phone card for out of cycle billing
• $7 for Universal Connectivity Charge.

If you wish to participate in this settlement, then you must mail or submit a claim form by Feb. 13, 2011.

Click Here to get more info on settlements with AT&T.

That's it for this post. Tune in to this wireless contract blog to get more news and updates on related topics.

Verizon Wireless to Pay $21 Million for Wireless Contract ETF Settlement

Here's a great update for those who have a score to settle with Verizon Wireless. The nation's largest wireless carrier will pay for a class action lawsuit in California over early termination fees. Verizon Wireless will pay a total of $21 million to the 175,000 members of the class.

Each person in the class-action claim is estimated to receive $87.50 after challenging the carrier's practice of charging a $175 fee for breaking a wireless-service contract early.

The carrier will be made to pay after appeals court in California ruled that the class-action settlement should be upheld.

This Verizon Wireless contract settlement ends all litigation over how early termination fees were applied. However, this should not be applies to its current early termination fee policy. Verizon Wireless has increased ETF from $175 to a pro-rated $350 for "advanced devices" like smartphones and netbooks.

Scott Bursor, the lead attorney for the plaintiffs in the case commented,

"Yesterday's ruling by the Court of Appeal confirms that this is a terrific settlement for Verizon Wireless customers, and now more than 175,000 of those customers will get a substantial refund"

This case was filed in 1999 and centered on a flat $175 ETF.

Tune in for more details on this wireless contract news and update.

StraightTalk: a No Wireless Contract Service from Wal-Mart

The current trend indicates that consumers are turning to pre-paid and other no-contract services in a n effort to find cost-effective solutions. They are favoring these services over the wireless contract services that offer more benefits but come with a heavier price tag. Wal-Mart was among the few to take advantage of this movement and offer its Straight Talk, a no-contract cell phone service.

The Straight Talk a no-contract wireless phone service is available from 3200 Wal-Mart stores nationwide. This prepaid option offers two options: $30 USD a month for 1000 minutes and 1000 texts or $45 USD for unlimited minutes and texts.

Some of the phones included in the Straight Talk line-up include :

• Samsung Finesse
• Samsung R355C
• Samsung R451C
• LG 290C
• LG 100C

This new provider hopes to compete with more established no-wireless contract cell phone services like Boost Mobile and MetroPCS.

Check out this service and other similar offers if you want an alternative to contract cell phones.

Tune in for more mobile phone contract news and updates.

AT&T's Smartphone Plans Overhaul and Wireless Contracts

AT&T has recently announced major changes for its smartphone plans. The carrier has decided to dissolve its unlimited data plan and now offer two-tiered data plan pricing. Since changes in plans allow consumers to terminate their wireless contract without any fees, some consumers are wondering if this will be the case with these new plans.

But before we answer that, here's a brief over view of AT&T's new two-tiered data plans.

DataPlus plan: offers smartphone customers 200 megabytes of data for $15 a month. An additional 200MB of data for $15 until the end of that billing cycle is offered if customers exceed 200MB in a monthly billing cycle.

DataPro plan: 2 gigabytes of data for $25 a month. An additional 1GB of data for $10 will be offered to those who exceed 2GB during a billing cycle.

Now to the important question. Will these new plan allow one to cancel your current mobile phone contract without paying any fees?

Unfortunately, the answer is no. Why? Well, these changes do not require existing customers to switch to the new tiered data service plans. Consumers can keep your existing unlimited data plan so no material changes has affected the terms of your contract.

Only a material change such as an increase in charges can allow a consumer to terminate a contract without incurring an early termination fee.

That's it for this post. Stand by for more news and updates on wireless contracts for mobile phones.

Terminating a Wireless Contract to get the iPhone 4G

The release of a new iPhone always triggers a consumer migration from other carriers to AT&T. Consumers find all sorts of ways to abandon their contract just to get Apple's prized smartphone. This years iPhone 4 is expected to be no different. Here are some points that you might want to consider before terminating your mobile phone wireless contract to get the iPhone 4.

First you need to think about the ETF or early termination fee of your carrier.

Verizon too has two tiers of ETFs, $350 for smartphones, and $175 for feature phones.

Sprint's ETF starts at $200 and goes down by $10 every month beginning after the first four months.

T-Mobile ETF is $200.

Then you need to consider one you have terminated you contract. What to do with your old phone. Well, there are plenty of options.

First you can get some of your money back by selling it on Craigslist or eBay.

You can also donate your old handset to charity, or one of the many programs that delivers old or unwanted handsets to members of the military, or people in developing countries. You can also donate it as a cell phone for seniors.

That's it for this post and good luck with ditching your old wireless contract for the new iPhone 4. Tune in to this blog for more on wireless contracts news and updates.