Unlike OS X Leopard’s elusive release date and the speculation that comes along with it, it is pretty well accepted that the iPhone will be released on June 11, 2007. If you’re thinking about switching to the iPhone, at the top of your list of to-do’s should be “Check your service provider’s termination clause.”
The iPhone is only going to be carried by Cingular, at least initially. So if you’re thinking about switching to the iPhone and you do not have Cingular as your current cell carrier, you will have to terminate your current contract or wait around until your initial cell phone contract expires. Check our iPhone Switch Cost Calculator to find the true cost of the iPhone for you.
Most cell phone carriers have you locked into a two year contract which will convert to a month to month contract after the initial period expires. Canceling the cell phone contract early can lead to big fees. Some providers charge fees per line for breaking your cell phone contract, so if you have a family package, you could really be hit hard. Some providers charge as much as $200.00 per line to cancel your contract.
If you are switching to the iPhone, actual termination of your current cell phone contract is pretty simple, especially if you’re taking your number with you. Sign up for service at Cingular with your number and Cingular’s notification of the porting of the number to their service is enough to cancel your old cell phone provider’s contract.
Here are some of the relevant termination clauses from some of the major U.S. cell phone providers for quick reference:
Your Rights To Change Or End Your Service; Termination Fees; Phone Number Portability
∞ Except as explicitly permitted by this agreement, you’re agreeing to maintain service with us for your minimum term. (Periods of suspension of service don’t count towards fulfillment of your minimum term.) After that, you’ll become a month-to-month customer under this agreement. AN EARLY TERMINATION FEE WILL APPLY IF YOU CHOOSE TO END YOUR SERVICE BEFORE BECOMING A MONTH-TO-MONTH CUSTOMER, OR IF WE TERMINATE IT EARLY FOR GOOD CAUSE. FOR SERVICE ACTIVATED PRIOR TO NOVEMBER 16, 2006, THE EARLY TERMINATION FEE IS $175 PER WIRELESS PHONE NUMBER. FOR SERVICE ACTIVATED ON OR AFTER NOVEMBER 16, 2006, OR FOR LINES OF SERVICE WITH MINIMUM TERMS EXTENDED ON OR AFTER NOVEMBER 16, 2006, THE EARLY TERMINATION FEE IS $175, WHICH WILL BE REDUCED BY $5 FOR EACH FULL MONTH TOWARD YOUR MINIMUM TERM THAT YOU COMPLETE. (The Early Termination Fee applies only to the extent permitted by law. If you buy your wireless phone from an agent or third-party vendor, you should check to see if they charge a separate termination fee) If you terminate your service as of the end of your minimum term, you won’t be responsible for any remaining part of your monthly billing cycle. Otherwise, all terminations by you during a monthly billing cycle become effective on the last day of that billing cycle. You’ll remain responsible for all fees and charges incurred until then and won’t be entitled to any partial month credits or refunds. You may be able to take, or “port,” your current wireless phone number to another service provider. If you request your new service provider to port a number from us, and we receive your request from that new service provider, we’ll treat it as notice from you to terminate our service for that number upon successful completion of porting. After the porting is completed, you won’t be able to use our service for that number. You’ll remain responsible for any Early Termination Fee, and for all fees and charges through the end of that billing cycle, just like any other termination. If you’re porting a phone number to us from another company, we may not be able to provide you some services, such as 911 location services, immediately.
Term; Cancellation of Service. If you select a rate plan with a fixed term longer than 1 month, then this Agreement will continue for the full number of months selected (”Term”). You may cancel Service for any reason by providing us with notice (we may require up to 30 days), which cancellation will take effect on or before the beginning of the next billing cycle after the notice period, BUT IF YOU CANCEL SERVICE OR BREACH THE AGREEMENT BEFORE YOUR TERM ENDS, YOU AGREE THAT THE RESULTING HARM TO US IS IMPRACTICABLE OR EXTREMELY DIFFICULT TO MEASURE AND YOU AGREE TO PAY US IN ADDITION TO AMOUNTS OWED, AS A REASONABLE ESTIMATE OF OUR HARM, A $200.00 CANCELLATION FEE PER NUMBER (which may be deducted from your deposit or any amounts prepaid by you, charged to your card or billed to your account). Our cost of providing your Service and Phone is not incurred evenly over the Term. Our monthly charges and other rates are based on the assumption that you will remain a customer for the whole Term. You and we agree that it is reasonable for your rates to include the amount of the cancellation fee. We may suspend or terminate your Service for any reason or no reason upon 3 days notice (unless a longer period is required by law). If you breach the Agreement, we may suspend or terminate your Service immediately without prior notice (except to the extent prohibited by law) and do the same for any other service you receive under any other agreement with us. You breach the Agreement by: (a) failing to pay any sum when due; (b) failing to comply with any provision in this Agreement or any other agreement between us; (c) becoming the subject of any proceedings under the Bankruptcy Code; (d) becoming insolvent; or (e) your financial institution dishonoring or returning for insufficient funds your check or credit card. In the event of cancellation, you are responsible for payment of all charges (including any cancellation fee) due to us under the Agreement, which charges will be immediately due and payable. If we reinstate Service to you after discontinuing Service, you may be subject to a credit check and agree to pay reactivation charges or deposits. After the Term expires, you become a month-to-month customer but are still subject to the Agreement, as modified.
Termination By You
- Fixed Term. If you subscribe to a Service for a fixed term and you terminate that Service before the expiration of the fixed term then you will be required to pay us an early cancellation fee as specified on your Service Order. If there is no early cancellation fee specified on your Service Order, then you will be required to pay $200 per line for any early cancellation. In addition, you remain liable for payment of all outstanding charges for all Services you used and Equipment you purchased from us prior to termination.
- Month-to-Month Term. You may terminate a Service to which you subscribe on a month-to-month basis at any time by notifying us. You remain liable for payment of all outstanding charges for all Services you used and Equipment you purchased from us prior to termination.
- Change in Location. A change in your service address or the location to which any Service is provided to you may constitute, at our sole discretion, termination of the Services or an increase in the prices you must pay for the Services.
Number Portability. A request by you to port your number will be deemed a request by you to terminate your Agreement.
Term Commitments & Early Termination Fees
Many of the Services (for example, rate plans and Device discounts) that we offer require you to maintain certain Services with us for a minimum term, usually 1 or 2 years (”Term Commitment”). You will be charged a fee (”Early Termination Fee”) for each line of Service that you terminate early (i.e., prior to satisfying the Term Commitment) or for each line of Service that we terminate early for good reason (for example, violating the payment or other terms of the Agreement). Early Termination Fees are a part of our rates. Your exact Term Commitment and Early Termination Fee may vary based on the Services you select and will be disclosed to you during the sales transaction. Carefully review any Term Commitment and Early Termination Fee requirements prior to selecting Services. After you have satisfied your Term Commitment, your Services continue on a month-to-month basis without any Early Termination Fee, unless you agree to extend your Term Commitment or agree to a new Term Commitment – for example, by accepting a new rate plan or upgrading your Device. As explained directly below, there are instances when you will not be responsible for an Early Termination Fee for terminating Services early.When You Don’t Have To Pay An Early Termination Fee
You aren’t responsible for paying an Early Termination Fee when terminating Services: (a) provided on a month-to-month basis; (b) consistent with our published trial period return policy; or (c) in response to a materially adverse change we make to the Agreement as described directly below.
Conversation