AT&T's early upgrade smartphone program detailed. Spoiler: they made it $125 more expensive

By on Oct 7, 2010 at 9:55 AM
Business October 7, 2010

Here is what we have just found out… AT&T recently modified their early upgrade program for smartphones, and due to smartphones becoming “increasingly more sophisticated” — and the cost of the devices increasing — AT&T has increased their $75 early upgrade fee to $200. That means a BlackBerry Bold 9700 that would have cost you $275 will now cost you $399. Quick messaging and basic phones are not subjected to the new change. AT&T told employees that, “This change to our exception pricing is necessary to maintain our ability to provide customers with the best selection of devices and maintain our leadership in the Smartphone category.” And hey, with Verizon charging a $350 ETF for advanced devices, it was only a matter of time before AT&T started exploring their options.

Tags:
, , , , , ,
94 Comments

Related Articles

  • Chris

    Here’s how it used to work:

    Upgrade to captivate for 200 bucks but never use it, instead put your sim in an old $30 nokia, drop data features and ebay phone for $400 dollars on ebay. Do this for all 3 or 5 lines on your plan of course.

    Repeat every 6 months (minus $75 early upgrade fee) and profit!

    AT&T got tired of funding eBay stores I think

    • Abhishek

      That’s NOT how they do it. You can’t have an upgrade eligibility every 6 months! You ONLY get it every 18 months otherwise buy the phone outright for a no-commitment price.
      Stop spreading false rumors.

      • Jon

        This is an EXCEPTION upgrade. That means for upgrades less than 18 months because you dropped your phone in the toilet. It’s as low as every 6, depending on how much revenue you bring in, how many times you did it before and so on.

    • Matrixbarf

      Chris’s statement is a little off….it wouldn’t be $200 for the captivate at the early upgrade price. If you look at the example above, it would actually cost the early upgrade fee plus the new 2yr. price, which would make it $399.99. $100 cheaper than the “No Commitment Pricing”.

  • Jason

    AT&T already charges $325 for ETF’s on smartphones. So now they charge more for early upgrades and charge a higher ETF.

    • cellphoneguy

      that 325 drops 10 bucks a month

      • What?

        And so after 12 months the ETF is $205. That’s impressively outrageous. For comparison, Sprint’s ETF starts at $200, and declines over time.

        At least Verizon gives you the option to get a 1 year contract so you can avoid the ETF. If you’re going to charge north of $300 as an ETF, you really should offer customers the ability to pay more for the phone and get a 1 year deal.

      • Schtupenheimer

        Are you kidding? you need to work in a store so you understand how 99% of the customers already complain about the 2 year contract price let alone to pay MORE for less contract. This would not be a big deal to ANYONE if people just thought for themselves for a moment and selected the correct device that fit THEM and not what everyone is telling them to get. Fullfill the contract YOU are signing and you’ll get better deals, it’s that simple. People shouldn’t blame ETF’s and exception upgrade prices on AT&T or Verizon or Sprint because your the one holding the pen :) This isn’t ALL aimed at you of course but a general statement of someone who actually Works in the industry and hears all the complaints 24/7 of how this 600 dollar retail phone should be free cause they have been a customer for 10 years. I’ve been shopping at QFC for 10 years should they give me free bread?

      • Matrixbarf

        Oh? You’re not getting your free bread? ;p

  • ItsaRaid

    If AT&T changes their Provision Agreements with us, we should be given a opt, to withdraw or terminate or contracts without any ETF or Fee whatsoever. Furthermore, Those of us with Smartphones that have documented problems, should be given a refund in full for the purchase price of that phone, at our descretion. This is very sad, A Insatiable Appetite for Money and they cant get what they e doing right now right. I dont think AT&T knows the Difference between a Bannana and Toilet Paper.
    As we continue to plod forward in this Marvelous World of Cellular Technology, we need badly Legislation, Mandating the Cellular Carrier to do certain things, when they cannot rectify a probllem, without assigning the word “Fault”-
    For instance if one had a Smartphone at 45 days or 90 days that is well documented having problems, they should replace with a New Phone, or another phone of the endusers choice.(Same Dollars), Or, Allow a Enduser to terminate his contract without Fees applied, Prorate Usage Charges Fairely, and refund the cost of the Phone to the enduser. These rules should be made legal and apply to all carriers, that way, they may be a little more carefule in thheir dealings with the Consumer-

    • Blog Retards for Life

      Why? You’re current contract is unimpacted you moron. This only applies to you IF you want to upgrade. Dink.

    • Matrixbarf

      Does this change affect the AT&T Wireless Customer Agreement? Answer: Not really. It only changes the program in place to allow customers to upgrade early (which isn’t even addressed by the WCA you sign as a AT&T wireless customer). In any case, by signing the WCA to get wireless service with AT&T, you agree that AT&T “may change any terms, conditions, rates, fees, expenses, or charges regarding your Service at any time…”.

    • wireless employee

      the service is seperate from the device, you can activate an old phone or new phn and still have service, so no contracts shuld not be voided because of device issues when i have worked for 2 major wireless carriers and 9 times out of 10 its the user who either picked the wrong phone, didnt authorize user to upgrade, saw a new device out and wants to get it without knowing its capabilites. A contract is a contract and within guidelines carriers replace the device but thats not what the customer wants…. instead of accepting the newer version of a phone they think there entitled to a free phone of their choice!!!!! NO! Customers want to be able to try different phones to see what they like and expect the wireless carrier to pay for it…….thats why we offer them to try phones out in the store before picking a phone based on what it looks like or what someone else says!!!!

  • jon

    You’d have to be a dumbass to do that now.

    AT&T is seriously the most consumer unfriendly carrier out there.

    • Matrixbarf

      What would be so stupid about doing this early upgrade? I would have to say this is a pretty sweet deal when compared to the alternative (having to pay the no commitment price, since you aren’t eligible to upgrade yet).

      According to the example above, a customer that wants to get a Torch would save $100, or a customer wanting something like the Mythic would save $125.

  • BOBBY

    HHAHAHAA what a joke. Why would anyone want to be on AT&T! Just wait till verizon has the Iphone. BYE BYE AT&T!

  • Jeff

    I was thinking about an early upgrade to the Captivate. If that’s going to cost an extra $200, I might just jump ship to Verizon and pay my ETF (now at $120).

    • Matrixbarf

      The Captivate would be $100 cheaper than the no commitment price [if] you are doing an Early Upgrade, which is what this article is talking about…not a normal upgrade.

  • TOM

    Sorry, Chris is pretty close to accurate. minus a few details

  • angel martinez

    Ilove sprint 69.99

    • What?

      Even with the $10 4G add on (which I don’t have yet but will soon) I’d still love Sprint.

  • BL

    I’m leaving AT&T iPhone behind soon as I can save up the $500+ deposit sprint will charge me to get a evo plus the phone cost :(

  • Nathan

    Screw AT&T. Verizon is nearly as bad. If either alternate carrier had good coverage and good phones, I’d switch to one of them.

    As it is, I’m considering eBaying my iPhone 4 and going to Verizon for a Galaxy S.

  • jmk

    damn! verizon its only a $20 fee. but you have a higher etf. still….whew that’s steep

    • ivwshane

      You have no idea what you are talking about.

      • Jason

        jmk is correct – verizon charges $20 for their early upgrades. and the etf is 350.

        i for one think this is fair. people who want/”need” new phones every 3 minutes should pay more than those happy with what they have for 2+ years

        ive had em all, and i currently have verizon. with work discount my month to month isint that expensive and i am more than happy with the service i receive – both coverage and in store service. calling the 800 # is a different story though…. but every carrier has horrible phone support.

  • P51d007

    Well heck…if that’s the case, come November (I always upgrade @ 12-14 months), I was looking at the Dell Streak (if they ever get around to releasing 2.2), I’ll drop by the at&t store to look at it, and then when the sales drone tells me the price, I’ll just tell him I’ll use my dell account to purchase it FULL PRICE, which won’t be much more than what at&t would charge me, plus the “upgrade” fee.
    Geez, at&t better hope they can figure out a way to kill the Verizon iPhone, gonna be a lot of CHURN if it does happen before Christmas

  • Jeff

    Another reason to leave At&T bye AT&T

  • slammer

    Maybe carriers should be more concerned about bargaining for better prices on the handsets rather than passing the cost onto consumers.

    John B.

  • chancellor

    i waschecking out atts prices earlier today….wow people on att must be rich or mentally slow..

    3 iphones with navigation, unlimited txt, and data and nights at 7 cost over 220dollars a month? That’s 70dollars >sprint…..

    • wireless employee

      You might want to read the fine print on sprint’s so called 69.99 unlimited plan its not unlimieted you have so many minutes of use per month for using too many minutes they can cut your phn off so it not truly unlimted…… ….”Sprint may terminate service if (1) more than 800 minutes, (2) a majority of minutes or (3) a majority of kilobytes in a given month are used while roaming”.
      i laugh at people who look at price but dont look close enough to see what they get for the price…..only limited global phones and smartphones available.

  • Anonymous

    most of you have no idea what you are talking about because, unlike me, you have not worked for the _____s at the Death Star!!!! they charge so much for ETF and early upgrades bc they are losing money selling phones for near what they pay for them if people continued buying new phones at upgrade price every 6 months to a year!! which, btw, 12 months MINIMUM you can upgrade without fees!!!! (besides the $18 upgrade fee!!)
    all this is truly a mute point though! bc in my experience if you come in and complain or scream enough, the managers will give you whatever you want!!! waive fees. they may even discount it more, or even better, give it to you free!

    Posted from BGR Mobile (iPhone).

    • D.M.

      You don’t know what you’re talking about:
      http://www.engadget.com/2010/07/22/atandt-announces-26-percent-earnings-growth-for-q2-4b-profit/

      AT&T announced in a press release of a 26% earnings increase in Q2 of 2010. Not only does AT&T bring in more earnings annually then any other provider. They don’t provide services. From trashy 3G network compared to Sprints & Verizon to being the only carrier not to provide Unlimited Data on smart-phones.

      Losing money, please you should really check yourself. If anyone is losing money, it’s Sprint. AT&T is no where near losing money. They are grossing more than Verizon, even though they are losing customers to verizon and verizon has many more customers. Why you may ask, oh because verizon actually invests into creating a better network, while at&t just charges more and refuses to invest into their subpar 3g network.

  • Ricotibiri

    Fuck you AT&T, fuck you.

  • Klint

    Everyone is so up in arms about this, but for what? SOMEONE has to pay for your phone. If you have a contract, then you pay for your phone over time. If you terminate early, then you haven’t finished paying for your phone. MY concern is how AT&T can just change your plan whenever they want, like when their computers “detect” a smartphone and automatically change your account to add data, even if the phone’s out of contract and paid for. Raising ETF’s sucks, and doesn’t help image or customer satisfaction, but changing a contract seems just plain illegal. But, in the end I guess I’ll just bitch about it online and keep paying my AT&T bill. Makes me wish Revol had the iPhone and Torch.

  • Jezreel

    At*nd t is always doing something detrimental to drive away potential customer.

  • http://www.chriswashington.net Chris

    WTF!!!!

    Why omit the iPhone from early termination fees?!

    It’s a smart phone too. Lawsuit!

  • Ronnie McDonnie

    AT&T is an evil company. Everyone should run in terror. They will steal your soul. They believe they are so large you can not touch them and young people are powerless. Prove them wrong! Screw AT&T, cell phone, home phone, DSL: Get service elsewhere.

1 2
blog comments powered by Disqus