Early Termination fees Illegal?

[Vick]

http://tech.yahoo.com/blogs/null/99655

So whats the deal here... So in a couple of years I can buy the Iphone, activate it, and then cancel my contract the next day for no charge? Unlock it, and move over to Verizon? hahahaha.. love it...

 

[Meistro]

lol you actually can't unlock it and use it for verizon because the Iphone runs on the gsm network smart guy

 

[Mukandpuria]

god damm verizon! if only they had the chip it would make my life easier....much better phone selection

on the other hand blackberry thunder is coming out and no one else has it but verizon..chea chea!

 

[yraparla]

the point of early termination is to pay for the phone you got for cheap (sometimes free!). So if you've been on the plan for say 10 months, you shouldn't have to pay the same as some guy who cancels the next day.

So the fees are legal if they're "pro-rated", i.e. take into account how long you've been with the service.

in the case of the iphone, you'd be hit with a heavy, heavy fee if you terminated early. You'd basically pay full price which is like what, $599? maybe $499

it would hurt.

 

[Chidiya]

so wait. question for you guys..if i get a iphone with att ..unlock it and switch over to tmobile do i lose the warranty on the phone?

 

[Nikhil]

Yeah, I'm pretty sure you would lose the warranty. I think if you just bought the phone without any contract with any service its a different story, but since you buy it through AT&T first, the warranty is for coverage using that service only. Correct me if I'm wrong!

 

[zagreus]

If these early termination fees go away...
say bye to all those deals on new phones. Most the new phones that get deals are usually discounted because of a new contract. Without the contract...my dare would've costed me about 400 bucks. It's a point to consider.

 

[Chidiya]

ehh. yikes. anyone know the price of the new iphone w/o a contract?

 

[Vick]

If these early termination fees go away...
say bye to all those deals on new phones. Most the new phones that get deals are usually discounted because of a new contract. Without the contract...my dare would've costed me about 400 bucks. It's a point to consider.

Why did you decide to purchase the Dare? I had the option of going with the Dare or the Voyager, both were the same price, I went with the Voyager... Just wondering...

 

[yraparla]

so wait. question for you guys..if i get a iphone with att ..unlock it and switch over to tmobile do i lose the warranty on the phone?

if by unlock you mean hack on your own then yes. This is true of any electronic product.

If you simply drop the att coverage and switch to t-mobile you should be ok, but you'll basically be buying the iphone at its hardware prices which is around $499-699 depending on if you get 3G or not.