Though late to the finish line, it looks like Sprint is finally ready to follow AT&T and Verizon Wireless’ lead and bump its contract termination fee to $350 for “advanced devices.” Sprint confirmed on Wednesday that it will soon increase its early termination fee (ETF) from $200 to $350 beginning in early September. The 75% increase will impact subscribers who purchase subsidized smartphones, tablets, netbooks and notebooks, and the ETF will continue to be prorated as it is currently. The change is set to go into effect on September 9th according to a company spokesperson, and the timing is anything but curious. Sprint is expected to finally begin selling Apple smartphones when the iPhone 5 launches in October, and this big ETF bump is likely an effort to prevent consumers from buying and flying. EBay would likely crumble under the weight of all the new auctions if people were able to purchase the iPhone 5 for as little as $399 with no contract to worry about.

[Via SprintFeed]

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Are you an AT&T or T-Mobile small business customer? Sprint wants your business, and it’s offering some pretty compelling discounts to woo you. A leaked internal document says “Come on over to Sprint and see how we can be a great partner,” and it offers AT&T and T-Mobile enterprise customers a 12% discount, 2 handset offers, and $175 CL port-in credit. It’s not as nasty as the carrier’s earlier smear campaign, which asked “Do you have the feeling the AT&T/T-Mobile love connection won’t end with a ‘Happily Ever After?’,” and offered to pay the $175 early-termination fee, but it certainly shows the carrier’s anxiety about the AT&T/T-Mobile acquisition. Sprint has expressed deep concerns about the merger and its CEO, Dan Hesse, said that it will “stifle innovation” in the U.S. wireless market if approved. Sprint’s new deal reportedly runs through July 23rd. Read on for the full image.

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Speaking of smear campaigns, a new Sprint promotion specifically targets T-Mobile CL customers that may be uneasy about the proposed merger, according to a new report. According to a purported internal document, Sprint is trying to lure customers away by offering to pay their T-Mobile early termination fees up to $175 per line if they switch to Sprint. ”Do you have the feeling the AT&T/T-Mobile won’t end with a ‘Happily Ever After?’,” the document asks Sprint distribution partners. “Well, we’ve got a deal specifically for those T-Mobile CL customers having similar concerns.” To sweeten the deal and alleviate any worries for potential T-Mobile defectors, Sprint will also waive subscribers’ ETF fees if the AT&T’s acquisition of T-Mobile is not approved and they choose to switch back to T-Mobile as a result. Sprint has been openly and vocally opposed to the merger since AT&T first announced its intentions to acquire T-Mobile USA from Deutsche Telekom for $39 billion this past March. The carrier’s new ETF credit promotion reportedly begins today and runs through July 23rd.

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T-Mobile has begun sending letters to remaining Sidekick users in order to notify them that the Danger Services powering Sidekick phones will no longer be operational as of May 31st. T-Mobile first announced the imminent shut down on Tuesday. What can current Sidekick users expect in return for being forced to part with their beloved Danger phones? Half off a select Samsung phone between now and May 31st, or a waived ETF should they choose to take their business elsewhere. Oh, and users will have to sign a new two-year contract should they opt for the discount Samsung phone. Hit the break for the full letter T-Mobile sent affected subscribers.

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Here is what we have just found out… AT&T recently modified their early upgrade program for smartphones, and due to smartphones becoming “increasingly more sophisticated” — and the cost of the devices increasing — AT&T has increased their $75 early upgrade fee to $200. That means a BlackBerry Bold 9700 that would have cost you $275 will now cost you $399. Quick messaging and basic phones are not subjected to the new change. AT&T told employees that, “This change to our exception pricing is necessary to maintain our ability to provide customers with the best selection of devices and maintain our leadership in the Smartphone category.” And hey, with Verizon charging a $350 ETF for advanced devices, it was only a matter of time before AT&T started exploring their options.

A California appeals court has ruled that Verizon Wireless is to pay some 175,000 customers current and former customers $21 million as a settlement in a class action lawsuit over early termination fees. The class action suit was filed in California on the behalf of customers who were upset that Verizon asked they pay a flat ETF of $175 regardless of how many months were left on their contract. Each customer is expected to receive $87.50 as a result of the ruling. Too bad history is bound to repeat itself now that Verizon’s ETF for “advanced devices” (i.e. smartphones) is set at $350.

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Yesterday, we mused about AT&T’s adjustment to their ETF pricing as reported by the Wall Street Journal. Late yesterday, AT&T’s PR department decided to put their own spin on the termination fee tweaks with an “Open Letter” to their customers. The open letter confirms that the new ETFs, now $325 for smartphones and $150 for feature phones, will depreciate monthly at a rate of $10 and $4 respectively. We’ve got the full letter queued up for you after the break. Let us know what you think.

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The Wall Street Journal is reporting that AT&T will raise the early termination fee on its line of smartphones from $175 to $325 starting June 1st. The move is inline with adjustments made by Verizon Wireless to their ETF policy last November. The math is pretty simple: a BlackBerry 9700 at retail is $449 — if you buy the phone for $199 with new 2-year contract, then cancel for $175, you’ve just paid $374.  Under the new scheme your price, with penalty, would be $524 ($75 over retail in this example). The new ETF will not apply to existing contracts, just those of you who are inking new 2-year deals with the Death Star. They news isn’t all bad [yes it is], as the WSJ went onto say that feature phone ETFs will shrink by $25 to $150. What do you think? Is this higher smartphone ETF going to dissuade anyone from putting their name on another AT&T contract?

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Everyone and their mothers were up in arms when Verizon announced its new early termination fee policies last year. For a select group of smartphones and “advanced devices,” canceling one’s contract would incur a hefty $350 fee. Customers fumed, the FCC got involved and Verizon said they were just doing everyone a favor because it allowed them to provide favorable subsidies on handsets. Verizon decided to chop the advanced devices list down a bit by removing 10 handsets, but to be honest, they aren’t the most exciting ones. Included are the Motorola Krave, Samsung Rogue and five LG devices — BlackBerrys and Android devices are still very much in the $350 ETF category. Is this progress on Verizon’s part, or did they just demote those phones to not-so-advanced status?

[Via PhoneScoop]

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Here’s a bit of interesting news on the purchasing and cancellation process for the Nexus One. If you buy the device subsidized, and you decide to cancel your contract after the 14-day period (30 days for California) but before 120 days into your contract, Google can charge a termination fee of its own — on top of the carrier ETF. Shocking? Yeah, a little bit. You’d imagine that if you’re paying for a subsidized device and you cancel your contract, you’d just be paying the remainder of the subsidy. Why isn’t this completely surprising? Well, if you purchase a handset with a wireless data plan from an authorized third party, like an electronics store, you sometimes end up getting into the same agreement. Many third-party retailers charge their own fees on top of carrier fees. Still, it doesn’t make it right. Here’s what Google has to say:

Please note that the Equipment Recovery Fee is imposed by Google and not your chosen carrier and is in addition to any early termination fees that may be charged by your chosen carrier in connection with termination of your wireless plan prior to fulfillment of your chosen carrier’s service agreement term.

BGR decided to get in touch with T-Mobile and it is pretty much confirmed: if you cancel after 14 days (again, 30 in California), T-Mobile will charge $200 for breaking the contract, and Google will charge the difference between the subsidized cost of the phone and its full price. Think long and hard before you make the purchase with a service plan: $200 ETF for T-Mobile, $350 for Google and $179 for the device itself will cost you $729 in the end if you cancel. At that rate, you might as well buy it at the unlocked, unsubsidized price.

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On Friday afternoon, Verizon Wireless issued its response to the FCC complaint which investigated the carrier’s increased early termination fees for advanced devices and the spurious charges some customers incur when accidentally accessing the Mobile Web. As expected, Verizon defended the increased ETF and dismissed the accusation that it charges customers $1.99 for accidentally connecting to the Mobile Web. Verizon justifies its increased ETF by claiming that the fee is not limited to the recovery of the wholesale purchase price of the device. The fee is also necessary to partially offset the cost of running a smartphone network. There is a cost to sell the device (advertising, commission, store costs, device subsidy), a cost to technically support the device, and a cost associated with maintaining a broadband network. Verizon also reminds the FCC that the number of advanced devices is increasing and “the overall cost to the company for providing and supporting  devices to customers at low up-front cost has increased substantially”. When asked why a person canceling in the 23rd month of a 24 month contract still has to pay a $120 ETF, Verizon responded by claiming that it “still incurs a financial loss from early terminations, even with the $350 ETF”. If the ETF was prorated to$0 at the end of the contract, Verizon would be forced to charge a higher starting ETF and customers would be worse off. When you consider what Verizon has said about its need to increase its ETF, also consider the fact that Verizon’s revenue from its data services grew to $4.1 billion in Q3 2009, up 48.1 percent and up 28.9percent on a pro forma basis. In the midst of all this talk  about expenses, Verizon conveniently left that information out. Now that we have seen what Verizon thinks about its ETF, let’s examine what it said about its erroneous $1.99 Mobile web charges. Hit the jump for all the details.

Rather than admit any culpability for the numerous reports of erroneous Mobile Web data charges, Verizon denied that any error exists. Repeatedly in the report, Verizon stated that they do not charge usage fees ” when a customer simply launches the Internet browser and lands on the Verizon Wireless Mobile Web homepage”. Usage fees of $1.99 per megabyte are only charged when a customer navigates away from this launch page. Verizon explained that phones can be programmed to prevent the accidental launch of the web browser and confirmed that customers can place a data block on their account. Unfortunately, Verizon’s explanation does not jibe with the numerous reports of incorrect Mobile Web charges from both Verizon Wireless customers and Verizon Wireless employees. The FCC is currently reviewing Verizon’s response, let’s hope they are thorough.

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[Via WSJ]

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Here’s what Big Red is working with: they’ve offered up a BOGO sale on all new BlackBerrys for the holiday buying season, and where some see a great deal, others see a great opportunity. Why not play a game of Flip My BlackBerry? Why not open a second line, get a brand new Tour or Storm 2, pay the cancellation fee on the new line of $175, and sell the device on eBay for $300 or more? Well it looks like Verizon has finally caught onto our the little game. A new connect has emerged with a few documents and it looks like starting on November 15th Verizon will be charging up to $350 as an early termination fee on “advanced devices.” This new “improved” fee does have a minute silver lining (if you can even say that): for every month of service completed, the $350 sum will decrease by $10. No word yet on what an “advanced device” constitutes but we can use our imaginations to figure it out. What do you think? Anyone considering abandoning plans to buy the DROID after hearing this news, or are you just going to get yours before November 15th? Or will you actually be an honest person and actually honor the contract you sign?

Thanks, GetOverIt7!

Are you thinking about jumping on the new Storm2 BOGO deal, selling one on eBay and canceling a line? Well, we already made it pretty clear that doing so really isn’t all that profitable, but just in case you were thinking of pulling something similar to this in the future, we’re hearing Verizon is stepping it up in the ETF department. The rumor is, that starting November 15, Verizon is going to raise its ETF for high-end phones, such as the Storm2 and Droid, to $350. The ETF would then decrease by $5/mo. We haven’t confirmed it yet, but it certainly makes sense because of how easy it is to rip a carrier off by purchasing a new smartphone on contract, canceling the line, paying the termination fee and selling the phone for twice or three times what you paid.  If it pans out, we really can’t blame Verizon for trying to recover the subsidies they’d lose on early contract terminations. Scammers beware!