Canceling iPhone Service Early will Cost $175

From the Boston Globe
Even though AT&T isn't subsidizing the iPhone's hefty price -- $499 to $599, depending on the storage capacity a customer chooses -- the company will charge a $175 termination fee for iPhone users who want to break their two-year contracts.

Most cellphones sell for less than their true cost, with the cellular network paying the difference. In exchange, customers promise to use the service for a set period, usually two years. When subscribers cancel early, phone companies charge a cancellation fee, usually citing the need to recoup the cost of the subsidized phone.

Michael Gartenberg, vice president of JupiterResearch in New York, called the iPhone termination fee "a little odd," but doubted that many customers would object. "I don't think for most consumers it's an issue," he said.

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