Associated Press | AT&T is raising the fee it charges buyers
of the iPhone and other smart phones if they break their two-year
contracts. Starting June 1, those buyers will have to pay $325 for
breaking their contract, up from $175 currently. For buyers of regular
phones, the fee is being decreased by $25 to $150.
The early termination fee goes down for every month customers stay in their contract — by $10 for smart phones and $4 for regular phones. So if a smart phone contract is broken after two months, the termination fee is reduced by $20 to $305.
The changes only apply to new contracts.
Verizon Wireless raised its smart phone termination fees in November. Federal regulators have been looking into the practice of charging higher fees for smart phones.