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Is the early termination fee at AT and T on the phone or contract?
TobyChung
Early termination fees are applied on the contract you signed. Basically, mobile (cell) phone companies 'give' you a 'free' phone provided you sign up for a minimum term contract (usually two years).
If you want out of the contract early - they will charge you the remaining 'unused' months as a 'termination fee' - You get to keep the phone, but you'll have paid for it over the length of the minimum term.
As an example - say you signed a two year contract for $20 a month (I assume you're in the US as you asked about AT&T) - Over two years, that's $480. Now, if you wanted out of the contract mid-way through month 17 - AT&T would charge you the remaining six months of 'unused' contract (at a total of $120) to end the contract.
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∙ 11y ago
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