Bad news for anyone who is looking to get out of their AT&T contract in the future. According to reports today, the phone provider is looking to increase the fees a customer gets when they cancel their contract early.


These fees are currently $175 for customers who want out. Now AT&T is looking to raise early termination fees for smartphones to $325 for any new contracts after June 1. AT&T’s Mark Siegel confirmed the new changes in the following response.

“The idea is, and we think that it’s fair approach, that if you spend less on a device, your early termination fee should be less,” he said. “If you spend more, your early termination fee should be more.”

So less expensive phones will get their fees decreased by $25 while smartphone fees are increased. AT&T is not the only company raising early termination fees, Verizon also increased their fees in November. The upcoming change for new AT&T contracts is perfectly timed with the release of the next iPhone. Could there be a connection?

The next gen iPhone is certainly coming out sometime after June 1, and anyone who is looking to buy one on AT&T will have to sign a new contract if they are buying it at the subsidized price. This means all the new iPhone users could be subject to higher early termination fees if they cancelled their contract early. Perhaps this is all because of the rumors that Verizon is getting the next gen iPhone. AT&T might be worried that customers will jump ship to Verizon if the iPhone is available on a different network. Considering the amount of unsatisfied customers on AT&T, it would not surprise me if this is part of their plan to try to stop customers from switching.