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AT&T Loosens the Contract Noose

Posted by Cathy Lu | Tuesday, October 16, 2007 6:34 PM PT

ATT Prorates Fees.jpgWant to get out of your AT&T wireless contract? It will still cost you--but not as exorbitantly as before. Instead of charging a flat $175 fee for ditching early, the rate will be prorated depending on how much longer you're shackled to your contract (but not till next year, so before you say "see ya!" you might want to hold out just a little bit longer?) And if you change your calling plan mid contract? Starting in November, you can do so without having to extend your contract or begin anew.

AT&T joins Verizon Wireless in easing up on contract restrictions, claiming this is an issue of flexibility and fairness. But the cellular community has been getting some heat about this issue lately, with consumer groups supporting legislation introduced in the Senate that would require wireless companies to prorate early termination fees as well as allow people out of their contract if they do so within 30 days of signing up.

I have no intention of ditching my iPhone anytime soon (20 more months and counting on my contract!), but do these changes give you more of an incentive to get out of your contract early?

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