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  1. #1
    Someone Besides Me
    Guest
    I was wondering if AT&T will buy out contracts (pay the cancellation
    fee) if switching from other carriers?



    See More: Does AT&T buy out contracts?



  2. #2
    Kevin Weaver
    Guest

    Re: Does AT&T buy out contracts?

    My friend asked that also. They said no. Mgr said something about being a
    law they can't. I doubt it's a law. But none will do it. He also asked a few
    others and they all said no.

    "Someone Besides Me" <fake@fake.fak> wrote in message
    news:47bbda6d$0$8633$4c368faf@roadrunner.com...
    >I was wondering if AT&T will buy out contracts (pay the cancellation fee)
    >if switching from other carriers?





  3. #3
    DevilsPGD
    Guest

    Re: Does AT&T buy out contracts?

    In message <YdRuj.11756$J41.11053@newssvr14.news.prodigy.net> "Kevin
    Weaver" <kevinkeithweaver@sbcglobal.net> wrote:

    >My friend asked that also. They said no. Mgr said something about being a
    >law they can't. I doubt it's a law. But none will do it. He also asked a few
    >others and they all said no.


    Absolutely no such law that would even slow down carriers, if they
    wanted to do so.

    They might not be able to pay out the fee directly, I'm not entirely
    aware of competitive regulations in this area.

    However, offering a $200 bill credit for customers who sign up after
    getting an "evaluation of their needs" by bringing in one or more
    previous bills and getting an assessment of the best plan available for
    them on the new carrier wouldn't be illegal, were it worded correctly.



  4. #4
    Thomas T. Veldhouse
    Guest

    Re: Does AT&T buy out contracts?

    Someone Besides Me <fake@fake.fak> wrote:
    > I was wondering if AT&T will buy out contracts (pay the cancellation
    > fee) if switching from other carriers?


    Why would they do that? They either have to pass that fee on to you directly
    [which is not longer a buy-out] or they have to eat it and pass it along to
    all customers; to those that honor the full term of their contracts and those
    that don't. Once AT&T starts doing it, they all would have to, which would
    nullify the effect. AT&T as much as the rest benefit from locking a user to a
    plan for two years, so that is your answer; it just doesn't make sense to
    offer to buyout a competitors contract.

    --
    Thomas T. Veldhouse

    In the land of the dark the Ship of the Sun is driven by the Grateful Dead.
    -- Egyptian Book of the Dead



  5. #5
    DevilsPGD
    Guest

    Re: Does AT&T buy out contracts?

    In message <622nlfF210gp3U3@mid.individual.net> "Thomas T. Veldhouse"
    <veldy71@gmail.com> wrote:

    >Why would they do that? They either have to pass that fee on to you directly
    >[which is not longer a buy-out] or they have to eat it and pass it along to
    >all customers; to those that honor the full term of their contracts and those
    >that don't. Once AT&T starts doing it, they all would have to, which would
    >nullify the effect. AT&T as much as the rest benefit from locking a user to a
    >plan for two years, so that is your answer; it just doesn't make sense to
    >offer to buyout a competitors contract.


    The cost of acquiring new clients is usually over $200 anyway, adding a
    bit of additional cost wouldn't be the end of the world.

    Under the theory that this would being in more customers, it might delay
    the time until a new customer becomes revenue positive, but this could
    be overcome by adding an additional 6-12 months to the new contract if a
    contract transfer program is used.

    Long term though, all this would do would be to cause carriers to raise
    termination penalties, and add other obstacles to transferring.



  6. #6
    Thomas T. Veldhouse
    Guest

    Re: Does AT&T buy out contracts?

    DevilsPGD <spam_narf_spam@crazyhat.net> wrote:
    >
    > The cost of acquiring new clients is usually over $200 anyway, adding a
    > bit of additional cost wouldn't be the end of the world.
    >
    > Under the theory that this would being in more customers, it might delay
    > the time until a new customer becomes revenue positive, but this could
    > be overcome by adding an additional 6-12 months to the new contract if a
    > contract transfer program is used.
    >
    > Long term though, all this would do would be to cause carriers to raise
    > termination penalties, and add other obstacles to transferring.


    It also delays their own customer from leaving. All the carriers have the
    goal of reducing churn, and allowing contract buyouts would not progress to
    this goal. Further, all they can do is offer a new subscriber a discount for
    the amount of the ETF, as the ETF is applied by the previous carrier to the
    customer and not to the new provider. So, in the worst case scenario, AT&T
    might be giving a user a free phone under a 2-year contract and $200 worth of
    credit to offset the ETF charged by the customers former carrier for breaking
    contract. For one user, that is between 2 and 4 months of revenue! It used
    to be said that a carrier doesn't make a profit on a customer until the 10th
    month ... so you can do the math [assuming that still holds true].

    --
    Thomas T. Veldhouse

    In the land of the dark the Ship of the Sun is driven by the Grateful Dead.
    -- Egyptian Book of the Dead



  7. #7
    John Navas
    Guest

    Re: Does AT&T buy out contracts?

    On Wed, 20 Feb 2008 09:12:34 -0700, DevilsPGD
    <spam_narf_spam@crazyhat.net> wrote in
    <d3kor312jq0lqe0vjt8h7l4jpalga23tb3@4ax.com>:

    >In message <622nlfF210gp3U3@mid.individual.net> "Thomas T. Veldhouse"
    ><veldy71@gmail.com> wrote:
    >
    >>Why would they do that? They either have to pass that fee on to you directly
    >>[which is not longer a buy-out] or they have to eat it and pass it along to
    >>all customers; to those that honor the full term of their contracts and those
    >>that don't. Once AT&T starts doing it, they all would have to, which would
    >>nullify the effect. AT&T as much as the rest benefit from locking a user to a
    >>plan for two years, so that is your answer; it just doesn't make sense to
    >>offer to buyout a competitors contract.

    >
    >The cost of acquiring new clients is usually over $200 anyway, adding a
    >bit of additional cost wouldn't be the end of the world.


    Just the opposite -- the total cost of acquiring a new customer is on
    the order of $450-500, very high already, and the additional cost would
    make it uneconomic.

    >Under the theory that this would being in more customers, it might delay
    >the time until a new customer becomes revenue positive, but this could
    >be overcome by adding an additional 6-12 months to the new contract if a
    >contract transfer program is used.
    >
    >Long term though, all this would do would be to cause carriers to raise
    >termination penalties, and add other obstacles to transferring.


    I think that would likely be a non-starter in the marketplace,

    --
    Best regards,
    John Navas <http:/navasgroup.com>

    "Usenet is like a herd of performing elephants with diarrhea - massive,
    difficult to redirect, awe inspiring, entertaining, and a source of mind
    boggling amounts of excrement when you least expect it." --Gene Spafford



  8. #8
    lyaremko
    Guest

    Re: Does AT&T buy out contracts?


    "Kevin Weaver" <kevinkeithweaver@sbcglobal.net> wrote in message
    news:YdRuj.11756$J41.11053@newssvr14.news.prodigy.net...
    > My friend asked that also. They said no. Mgr said something about being a
    > law they can't. I doubt it's a law. But none will do it. He also asked a
    > few others and they all said no.



    Actually it IS considered "Tortious Interference In A Business Relationship"
    for any carrier to encourage a potential customer to terminate their
    existing contract.

    Same applies to all other business contracts. The competition may encourage
    the potential new customer not to renew their existing arrangement once it
    expires, but they are open to civil liability if they encourage them to
    cancel early.






  9. #9
    Todd Allcock
    Guest

    Re: Does AT&T buy out contracts?



    "lyaremko" <lyaremko@mail.anonymizer.com> wrote in message
    news:ZDivj.1335$lU5.908@newsread1.mlpsca01.us.to.verio.net...

    > Actually it IS considered "Tortious Interference In A Business
    > Relationship" for any carrier to encourage a potential customer to
    > terminate their existing contract.
    >
    > Same applies to all other business contracts. The competition may
    > encourage the potential new customer not to renew their existing
    > arrangement once it expires, but they are open to civil liability if they
    > encourage them to cancel early.



    I doubt that would apply, since an early opt-out (in return for paying an
    ETF) is actually part of the contract. Encouraging a customer to break the
    contract and not pay might be interference, but buying one's way out of it
    is simply fulfilling the contract early, much like paying a car or home loan
    early. No harm, no foul, and the terms of the contract have been satisfied.
    You don't necessarily commit to 2 years of service when you sign a cell
    contract- you really commit to 2 years OR an ETF.









  10. #10
    John Navas
    Guest

    Re: Does AT&T buy out contracts?

    On Thu, 21 Feb 2008 11:19:18 -0700, "Todd Allcock"
    <elecconnec@AmericaOnLine.com> wrote in <fpkfc9$oka$1@aioe.org>:

    >"lyaremko" <lyaremko@mail.anonymizer.com> wrote in message
    >news:ZDivj.1335$lU5.908@newsread1.mlpsca01.us.to.verio.net...
    >
    >> Actually it IS considered "Tortious Interference In A Business
    >> Relationship" for any carrier to encourage a potential customer to
    >> terminate their existing contract.
    >>
    >> Same applies to all other business contracts. The competition may
    >> encourage the potential new customer not to renew their existing
    >> arrangement once it expires, but they are open to civil liability if they
    >> encourage them to cancel early.

    >
    >I doubt that would apply, since an early opt-out (in return for paying an
    >ETF) is actually part of the contract. Encouraging a customer to break the
    >contract and not pay might be interference, but buying one's way out of it
    >is simply fulfilling the contract early, much like paying a car or home loan
    >early. No harm, no foul, and the terms of the contract have been satisfied.
    >You don't necessarily commit to 2 years of service when you sign a cell
    >contract- you really commit to 2 years OR an ETF.


    My own take is that's not a terrible persuasive argument. Suggest you
    read up on Tortious Interference case law. A contract isn't even
    necessarily required.

    --
    Best regards,
    John Navas <http:/navasgroup.com>

    "Usenet is like a herd of performing elephants with diarrhea - massive,
    difficult to redirect, awe inspiring, entertaining, and a source of mind
    boggling amounts of excrement when you least expect it." --Gene Spafford



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