AT&T's iPhone termination fee slammed by US rep

Rep. Edward J. Markey, who is chairman of a House subcommittee on telecommunications and the Internet, has criticised the iPhone because of the hefty $175 termination fee imposed by AT&T if you break contract early.

He said that it was a "Hotel California" service.

While many bemoan the exclusive tie-in to AT&T, the situation really isn't that unusual. There's usually a financial penalty to breaking a contract early, and once you're tied in to a particular network, you're stuck with them until the end of that contract (if you don't want to be stung for cash) even if your particular mobile phone is available on other networks.

Expensive phones often come with at least an 18-month tie-in - two years isn't much longer. And the fact is that everyone knew (or should have known) exactly what they were signing up to before purchasing an iPhone.

Of course, the additional tie in until 2012, which is when the exclusive deal between AT&T and Apple ends, is rather more problematic - effectively meaning you'll need to renew for up to 5 years, or stop using the iPhone.

(Via Seattlepi.com)

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