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$325 is nothing compared to Google’s $550 fee

By 21 May 2010 No Comment

The blogosphere seems upset about AT&T’s announcement to increase its Early Termination Fee (ETF) for smartphones from $175 to $325 while decreasing standard phones from $175 to $150. ¬†Given the fact that smartphones are becoming more capable and more expensive, and given the fact that consumers don’t want to pay up front, it seems only fair that the majority of phone buyers stopped subsidizing smartphone buyers.

AT&T’s $325 ETF would remain $25 lower than other carriers and it’s nowhere near as outrageous as Google’s $550 effective early termination fee for the Nexus One. ¬†The pundits are acting as if this was some sort of conspiracy when it is really just common sense.

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