iPhone Early Cancellation Fee $175
Boston.com is reporting that iPhone subscribers will have to pay $175 to break their two year contract.
Early cancellation fees are typical for mobile phone contracts in the U.S., but the article points out that these fees typically help cover the phone subsidies that mobile carriers offer on new phones. The iPhone, however, has been heavily rumored not to benefit from these retail discounts. Regardless, AT&T spokesperson Mark Siegel justifies the fee by noting that
Even though AT&T isn't subsidizing the iPhone's hefty price -- $499 to $599, depending on the storage capacity a customer chooses -- the company will charge a $175 termination fee for iPhone users who want to break their two-year contracts.
Early cancellation fees are typical for mobile phone contracts in the U.S., but the article points out that these fees typically help cover the phone subsidies that mobile carriers offer on new phones. The iPhone, however, has been heavily rumored not to benefit from these retail discounts. Regardless, AT&T spokesperson Mark Siegel justifies the fee by noting that
"There are certain fixed costs we incur in serving every customer who establishes service with us."
Top Rated Comments
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61 months ago
But... does it use a standard SIM card? Would someone with too much money (not me ;) ) be able to break their contract and use their iPhone on T-Mobile? or another carrier?
61 months ago
This is certainly disappointing, but I think that once people start using the iPhone, they wouldn't want to break their contract unless there were serious service issues or something with at&t. I think the product will be considered just that good.
Maybe at some point they'll subsidize the thing? Maybe THAT is what they're hiding?
Maybe at some point they'll subsidize the thing? Maybe THAT is what they're hiding?
61 months ago
I just hope it comes out as sim free or locked Pay As You Go in the UK because that what will make or break the iPhone out here.
61 months ago
I don't think this is any real surprise.
This is simply the "required" part of the 2 year contract required. "required" means it's required unless you want to pay a cancellation fee.
arn
This is simply the "required" part of the 2 year contract required. "required" means it's required unless you want to pay a cancellation fee.
arn
61 months ago
You could always just use it as a really sweet iPod, and surf with wifi when available. That is if they don't have some way of preventing you from using the non-phone functions without a SIM.
61 months ago
Not a big shock, cell phone contracts from any carrier are as convulated as any agreement. Certainly wouldn't keep me from getting an iPhone :D
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