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AT&T to Increase Fee for Dropped Smartphone Contracts
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May 21, 2010

AT&T to Increase Fee for Dropped Smartphone Contracts

By Paula Bernier, Executive Editor, IP Communications Magazines

Owning an iPhone (News - Alert) ain't cheap. As it turns out, getting rid of one isn't either.

You got your initial upfront cost starting around $200. You'll need a case some film to protect the screen, so figure on that. And then you got your monthly charges; I believe mine are right around $70-75 a month -- and you don't get the cut-rate price with AT&T's (News - Alert) iPhone service that many service providers offer when you add a second device to the plan.

For me, although I am very financially conservative, and many other users, the cost is well worth it.

Those that don't dig the iPhone, get frustrated with the AT&T service that supports it, or just decide they no longer want the service for whatever reason, however, should get themselves ready for another financial hit. AT&T is raising the fee for iPhone - or any smartphone - users who prematurely pull the plug on their two-year service contracts.

That's the word from a recent report on the matter, which says that starting next month, those folks will have to shell out $325 for the honor of cutting the virtual cord. That's $150 more than the $175 punishment AT&T currently metes out to discourage an early exit.

Edited by Patrick Barnard

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