Friday, October 8, 2010

AT&T ups smart phone 'early upgrade' fee from $75 to $200

CLICK to read article on Technolog

"If you're under an AT&T cell phone contract but are dying to upgrade early to the next great smart phone, you now will pay more to get it: $200, as of Oct. 3, up from the previous $75 fee. The change does not apply to the iPhone — which has its own upgrade plan that tends to vary from customer to customer — or to AT&T's basic or 'quick messaging' phones.

'As smart phones become increasingly more sophisticated, the cost of these devices has also increased,' AT&T says on its site. (Hat tip to Boy Genius Report, which first shared the news.)

Like the other major carriers in the United States, AT&T subsidizes the cost of most new phones when customers agree to a two-year contract, and smart phones are among the most expensive to buy. Retail costs are often in the $400 to $600 range for many smart phones without a contract, and about $200 with a contract.

And now that AT&T has not only several BlackBerrys from which to choose, but by the end of the year, eight Android phones, smart phone switch-outs may increase.

AT&T says it will 'continue to offer smart phones below the no-commitment price in situations where a customer needs a replacement device and is not yet eligible for upgrade pricing.' ('No-commitment price' = full price.)

Here's how it will play out in the real life. Say you want the BlackBerry Torch. If you are a new customer or due for an on-time upgrade, you can get it for $199.99. All you have to do is sign your life away for another two years, and agree to a minimum service plan. However, if you want to step up from your BB Bold, but it's only been a year or so, you'll have to pay an 'early upgrade' price of $399.99. And if you don't want a contract at all, the phone will cost you $499.99.

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