AT&T abolishing flat early termination fee

File this one under “I guess this is good news.” AT&T has announced a policy change: if you begin or renew a contract as of May 25th, the early termination fee (currently a flat $175) will decrease by $5 for each month of service you’ve already paid for. So, for example, if you decide to cancel a year into your contract, you’ll pay $60 less—just $115.

That’s…interesting. I suppose every little bit helps. Granted, the lowest you can get on the standard 2-year contract is about $60—and there’s probably not much point to canceling when you’ve only got a month left.

As AT&T points out, there are still plenty of options if you want to avoid contracts altogether, although the only one that really applies to iPhone users is buying a “pay as you go” plan. Personally, I look forward to the day that cell phone contracts bite the big one, but it appears that’s still to come.

[via iPod Observer]

Category: AT&T

Posted by Dan Moren on Mar 31 2008, 2:09 PM ET

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