"No more contracts!" And thus no more early termination fees. That's the selling point for AT&T's new "Next" deal right. It's a great deal, right? You get new phones every so often, eligible every year or so I think - standard like their old contracts except no upgrade fees. But wait there's more... when my Wife and I switch we save near $60 a month! Wow, no contract and it goes down $60 a month. What a deal... or is it?
No, it isn't that simple. On the "Next" plan you essentially buy a phone but you enter into what they refer to as an "installment agreement". We all know what these are, we get the stuff now and make payments. You pay for your brand new iPhone 5S for the low low price of $25 a month for 26 months, to the tune of $650 plus tax which you have to pay upfront.
Ladies and Gentlemen, in case you don't know that is a contract. And they have a funny clause under the "Default" provision. You are required to keep the cell phone active with their service. Otherwise it is a breach of the contract which they don't want to call a contract they call it the "installment agreement". But default under that contract and they can compel you to pay the balance of the cell phone... just like an early termination fee.
So essentially AT&T has advertised this big no contracts thing when they are definitely still contracts. Why are they doing this? Maybe because the Court system holds early termination fees to be unenforceable and unconscionable. So AT&T has made a brilliant and elaborate bunch of half truths and out right lies to basically give them early termination fees. Stroke of genius, the hustler in me applauds this communication giant for finding a way to misrepresent the truth to the masses and take advantage of the public at large to their financial gain. Good job AT&T, I signed up myself, after all I get a new phone and I save $10 a month on my bill.
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