According to the Boston Globe, even though AT&T does not subsidize the iPhone when it sells you the phone at $499 or $599, a cancellation fee will have to be paid if you choose to break the two year contract.
AT&T will charge a $175 termination fee for iPhone users who want to opt-out the mandatory contract.
I don’t think the cancellation fee is a problem if you really want to get out of the contract. Considering an $80 minimum per month for voice and data plans, the amount can even considered cheap.
The problem I see is the AT&T lock on the iPhone. If the company charge you a cancellation fee but does not unlock the iPhone, I think it would not be fair to consumers. And if the iPhone stays locked, are we going to be able to use the music, video and internet via Wi-Fi features just like if we were still an AT&T customer?
Let’s see in a week if this is the case or not.


June 24th, 2007 at 4:15 pm
I think the cancellation fee will be interesting. Without any subsidy, there is no consideration for the contract. I think if someone were to actually challenge AT&T on the issue in court, they might lose. That being said, it is not likely to happen over $175.00 and like you said, with an $80 monthly bill, $175.00 is not much.