AT&T Increases Termination Fees on Smartphone and iPhone
**Update June 1: The list of advanced devices that incur the higher $325 termination fee has now been published by AT&T
According to Digital Daily, AT&T is increasing the termination fee on smartphones, including the Apple iPhone to $325, from $175, effective June 1. This change is similar to one Verizon made last fall, when it doubled the termination fee on its lineup of smartphones.
AT&T termination fees currently decline by $5 per month from the $175 starting point. For the new $325 termination fee, the decline will be $10 per month.
Curious how they decided $325 was the right number instead of matching Verizon’s $350 (since their termination fee schedules are otherwise identical). Of all the considerations that go into someone choosing Verizon vs. AT&T, it is hard to imagine that a $25 lower termination fee — that is still over $300 — would be one of them.
Update: As part of the pricing changes, AT&T is actually decreasing the early termination fee on non-smartphones (feature and messaging phones) by $25 to $150. The prorated reduction each month will be $4, instead of $5. All the changes apply to contracts created on or after June 1.