Boston.com is reporting that AT&T will charge users wishing to terminate their contracts $175 to do so.
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.
Th article goes onto write that cancellation fees are in place to prevent the carrier from losing too much money on the subsidies they place on handsets.
Interestingly the iPhone is notably free of subsidies, AT&T spokesman Mark Siegel commented on the situation;
“There are certain fixed costs we incur in serving every customer who establishes service with us.”
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The following comments have been added by readers:
J.
24th June 2007, 04.32 am
Um,
All cell phone companies will charge you to break your contract. People planning to switch to the iPhone and AT&T from other carriers are going to be hit with a charge from their current phone companies if they have a contract with them.
This is not an “iPhone” thing…
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