AT&T Updates its Early Termination Policies

AT&T has announced a new approach to early termination fees (ETFs) which the company says will provide greater flexibility for wireless customers who want to close their account early.

Starting from late May, the company's new and renewing wireless customers who enter into one- or two-year service agreements will no longer be required to pay a single, flat early termination fee. Instead, that fee, which is $175, will be progressively lowered by $5 during each month, every month, for the term of the contract.

The single, flat ETF will continue to apply to new and renewing customers who enter into one- or two-year service agreements prior to May 25 - which could result in a sudden drop in new subscribers over the next few weeks.

The company noted that it continues to offer options for those customers who do not want term commitments or ETFs, such as paying the full unsubsidised price for the handset or taking out a SIM only package.

Posted to the site on 31st March 2008