ETFs and "Free" Phones

chaseman28

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May 17, 2012
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So I had this "brilliant" idea when I learned that Early Termination Fees are prorated:

If a carrier has special offer giving away a phone free one week but otherwise charging $50-300 for it previous to and after the deal, would your ETF be based on the normal price of the phone or would it be higher to make sure they recoup the wholesale value if you decide to cancel your contract? If the former is the case, I would get a free phone from T-Mobile or AT&T (as it will work with a prepaid carrier) and cancel the contract within 1-3 months depending on the ETF.

Any thoughts? Will this work or not?

Thanks in advance.
 

Verttex

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Aug 24, 2012
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Usually isn't the ETF the same overall. I know that is how Sprint and Verizon are. The ETF is based on the time remaining on the contract, 15-30/month~.
 

gone down south

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Jul 24, 2012
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You're not the first person to think of this, but and it rarely works. Carriers contract language will either force you to return the phone or pay off the balance of it's retail value.


Sent from my Nexus 4 using Android Central Forums
 

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