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AT&T Decides to Prorate Termination Fee

By Ed Oswald, BetaNews

October 17, 2007, 12:08 PM

Following a similar move by Verizon Wireless in January of last year, AT&T said Wednesday that it will change its policies to reduce early termination fees and change their contracts without penalty.

Like Verizon's new method, termination fees will be prorated and based on how much time is remaining in the contract. Additionally, fees for changing calling plans will be reduced.

The new prorated fees take effect in "early 2008," although the company is not providing specifics on how it will work as of yet.

The subject of termination fees has been one of contention among consumers, who see the flat-rate fees -sometimes as high as $200- as anti-choice. The fees have gotten the attention of lawmakers as well, and that may be one of the reasons why carriers are beginning to budge on the topic.

The two other major nationwide carriers -- T-Mobile and Sprint -- still have flat rate fees for canceling customers. However, with the two largest carriers now opting for prorated fees, there is added impetus for the two carriers to follow suit.

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By haccord3885

edited Oct 18, 2007 - 2:29 PM

This shows how many people hate the two largest carriers and how AT&T is a big monopoly and they rip off tons of customers. The old AT&T had better rate plans than the new AT&T. T-Mobile rules! T-Mobile has good customer service and reliable service in their great and good coverage areas and they do not charge a fortune for their services.

Score: 0

By psycros

posted Oct 18, 2007 - 4:06 AM

Its all about the high price of the phones themselves. The carriers aren't gonna give you a nice phone for under $100 without a guarantee of making a profit off you. Now, if you're willing to pay full price, you can have almost any phone you want sans contract. Problem is, for that kind of money you could have a decent laptop.

Score: 0

By firmamenter

edited Oct 17, 2007 - 11:04 PM

Oh good. Now what the hell is T-mobile doing?

Score: 0

By haccord3885

edited Oct 18, 2007 - 2:30 PM

T-Mobile has been doing the right thing so thats why they do not need to.

Score: 0

By philosopher_dog

posted Oct 17, 2007 - 3:10 PM

Down with AT&T for turning over private telephone records of innocent people to American authorities without due process. Pull the plug on them!

Score: 0

By ladylust

posted Oct 18, 2007 - 12:51 AM

Jesus Christ man... who gives a s***.. you calling Osama? Who cares.

Score: 0

By betavirus1025

posted Oct 17, 2007 - 4:21 PM

Just like a Dog. Barking up the wrong tree.

Where in this article did it say anything about "turning over private telephone records"?

We accept your early termination. Goodby!

Score: 0

By dlab21

edited Oct 17, 2007 - 3:06 PM

the proration is how it used to be.. then consumers b****ed about it wanting it to be a flat fee... and oh look they b**** about it some more... its not as if no contract options are not available.

att's old prorated would be $10 for every month you are still under contract so anything >0 days and (less than) 31 days is $10 and 22 months would be $220

Score: 0

By DZNetworks

posted Oct 17, 2007 - 2:51 PM

Two hundred dollars is absolute highway robbery in my opinion.

Score: 0

By amroliwala

posted Oct 17, 2007 - 2:20 PM

I sure hope AT&T's early termination prorating is better than Verizon's. I checked with Verizon regarding this, and it turns out they only take off $5 per month after you have been on the plan for 6 months. Also, the prorating applies specifically to two-year contracts. This may have changed since I checked (sometime last year), but it's not that great.

In effect, it even if you want to end your contract 1 year into a two year agreement, it only takes off $60 off a $175 early termination fee, not half (or $87.50).

Score: 0

By Hellcat_M

posted Oct 17, 2007 - 1:57 PM

Early termination fees are just a way for the companies to screw you over. I've been having problems with sprint where I get tons of dropped calls and they won't drop the termination fee. I'm in a family plan with my father and his wife so it would cost $600 to terminate and all I get is "you get signal so you can't terminate" which is BS. So I have to either shell out the money or live with the crappy service. I think there shouldn't be any termination fees especially if you're having problems with the service. Very bad business practice!