AT&T opens up and explains its new ETF policy change

In order to get their point across without certain aspects being misconstrued in the process, AT&T was prompt in offering an open letter to its customers about yesterday's surfaced reports about the new policy change affecting ETFs. In their letter, the changes surrounding the new ETF policies were confirmed as the ETF now stands at $325 with a $10 reduction each month while you're on contract with a smartphone. As far as feature and quick messaging phones are concerned, it'll actually be lowered to $150 with a $4 reduction each month as you continue to be a customer. The letter started off by saying, “At AT&T, we work hard every day to provide you with a great wireless experience at competitive prices.” They go right into it explaining that they are able to offer a “great wireless experience at competitive prices” by offering you “the industry's leading wireless handsets below their full retail price when you sign a two-year service agreement.”

If you happen to not sit tight with that notion, then there are clearly some other solutions they offer to customers such as bypassing the ETF altogether by purchasing a handset at full price with no commitment or going the prepaid route with their GoPhone options. Nonetheless, the two top wireless carriers in the country have already set the wheel in motion for the rising ETF fees associated with smartphones and lowering of it for feature phones. It's difficult to foresee how this new move will shake up the industry – will others follow suit? Or will we begin to see a shift in customers bailing the postpaid route in favor of prepaid?

source: AT&T