Quote:
Originally Posted by UCrewX5
What is so hard to understand here? Yes, the ETF was increased for certain smartphones. They were also lowered for non-smartphones. The smartphone is a much more expensive device, so why shouldn't there be a differential in the ETF? Why should someone that is not purchasing a smartphone be saddled with the same ETF as someone that opts to buy a smartphone?
The bottom line is that all U.S. based cellular providers subsidize the consumer purchase of the handset in exchange for agreeing to a 2 year contract. Without the ETF, what is to stop someone from buying a device at a subsidized rate and turning around and canceling the service and selling the device for a nice little profit?
The point of the ETF is to ensure that the cellular provider is able to recoup the handset subsidy over the term of the agreed upon contract. And if you need to terminate early, you know upfront at the time you purchase the device what the ETF is. Further, if you don't like paying an ETF or being locked into a contract, you can purchase an unsubsidized phone and simply pay for service month to month with no contractual obligation. Pretty simple.
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I absolutely agree, and I understand why they do ETF's. Signing a new 2yr contract is why I got my phone for free, otherwise I would have had to pay $200+ for my phone. I've had two Treo's for years..upgraded and custom ROM's, hacked software, etc so I was happy. Ironically, the only reason why I "upgraded" to a Droid phone is because the speakerphone on my 755p blew 2 days after I cancelled the insurance. Fortunately, since I've been using my Treo's for so long (they always got the job done...stream music and video, internet, IM, apps galore (just not a "store" to find them)), so I had no reason to change. SInce I hadn't changed in so long, I had two $50 credits for each one of my phone lines, then a $100 rebate for buying the Moment and I was out the door w/o spending a dime.
Quote:
Originally Posted by UCrewX5
Your argument makes no sense. This does not apply to those currently under contract. Only to those entering into a new contract.
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"AT&T says it will raise the penalty for canceling your new two-year smartphone contract early to $325, starting June 1"
The way that I read the story is that they're increasing the ETF amount for both renewing and current owners in an attempt to deter them from leaving to other carries. Maybe we're both right. Either way, as far as I know, I'm still at $200 w/ Sprint, but I have absolutely no reason to leave.
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