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Sprint Changing ETFs Starting September 9th

Posted In News - By Joe Fedewa On Tuesday, August 30th, 2011 8:47pm PDT With 37 Comments

As of right now the early termination fee for ending a contract before it’s up is a pricey $200, but starting September 9th you might not think $200 is so bad. Our world renowned Super Spies have done it again, and this time they bring us some bad news. We have some “Dealer News” that says ETFs will be changed to $350 starting September 9th. The document states that this is only for “advanced” devices such as smartphones, tablets, netbooks, and notebooks. This will go into effect on contracts signed after that date. It should be noted that changes for authorized dealers normally apply to corporate Sprint stores too.

 

Thanks Diddy!

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About - Joe is a tech enthusiast. He's been interested in phones ever since he used his first one. Since then he's evolved from flip phones to smartphones, and become even more obsessed with everything in mobile tech. He brings his fresh style of tech blogging and graphic design skills to SprintFeed.

  • Anonymous

    Updated and making penalty larger in preparation for SGS2 and iPhone launch?

  • Anonymous

    Updated and making penalty larger in preparation for SGS2 and iPhone launch?

  • Bebdigga

    Yesss!now i can kill my contract nd get dat new samy g2s..

  • Bebdigga

    Yesss!now i can kill my contract nd get dat new samy g2s..

  • Bebdigga

    Yesss!now i can kill my contract nd get dat new samy g2s..

  • Anonymous

    Ouch. Understandable though in light of the costs of the tablets and the high end phones. Still sucks.

  • Anonymous

    If Boost Mobile had 4G I would love to go with them. Because 3G over CDMA has been a joke since day 1 compared to AT&T’s 3G data service. Is it possible to take any Sprint smartphone and use it with Boost Mobile?

  • Anonymous

    I called to cancel a line last week and the rep from retentions offered to move that line to Boost instead of completely cancelling. It’s an old Motor Razr2 so I can’t say they’ll do any phone but it wouldn’t hurt to try. ETF for moving to Boost instead of cancellation was only 150 instead of 200. The move takes effect on the 7th, I’m considering putting my Evo3D on that line before then just to see if it works.

  • gerry frawley

    I’m sorry, this is total crap. This is all about chaining you to a plan, not the cost of a device. Cell phone makers and wireless carriers are articificially keeping prices high so they can justify contracts and ETAs. The iphone4, the most expensive phone, costs about $220 in parts. OK, add labor (well, in China where they are made they are paying workers about 5 cents an hour), and add in reasonable profit and I get it, but these things are absurd.

    Where are all the free marketers screams on this? If ever there was an anticompetitive scheme, it is the ETA.

  • gerry frawley

    I’m sorry, this is total crap. This is all about chaining you to a plan, not the cost of a device. Cell phone makers and wireless carriers are articificially keeping prices high so they can justify contracts and ETAs. The iphone4, the most expensive phone, costs about $220 in parts. OK, add labor (well, in China where they are made they are paying workers about 5 cents an hour), and add in reasonable profit and I get it, but these things are absurd.

    Where are all the free marketers screams on this? If ever there was an anticompetitive scheme, it is the ETA.

  • gerry frawley

    I’m sorry, this is total crap. This is all about chaining you to a plan, not the cost of a device. Cell phone makers and wireless carriers are articificially keeping prices high so they can justify contracts and ETAs. The iphone4, the most expensive phone, costs about $220 in parts. OK, add labor (well, in China where they are made they are paying workers about 5 cents an hour), and add in reasonable profit and I get it, but these things are absurd.

    Where are all the free marketers screams on this? If ever there was an anticompetitive scheme, it is the ETA.

  • Anonymous

    It’s not total crap.

    For Sprint, the profit margin from selling phones is currently approximately -160%.

    Apple charges CARRIERS roughly $600 for a 16GB iPhone 4. Carriers then subsidize the cost and sell at $199. They need to recoup the subsidy.

    If I went into a store and purchased a Motorola Photon with a new line for $200, then canceled the line and paid the $200 ETF, Sprint ends up LOSING money and I score a $550 photon for $400.

    Bottom line is, carriers aren’t the ones making hand over fist on the devices, Apple sure is though!

  • Anonymous

    It’s not total crap.

    For Sprint, the profit margin from selling phones is currently approximately -160%.

    Apple charges CARRIERS roughly $600 for a 16GB iPhone 4. Carriers then subsidize the cost and sell at $199. They need to recoup the subsidy.

    If I went into a store and purchased a Motorola Photon with a new line for $200, then canceled the line and paid the $200 ETF, Sprint ends up LOSING money and I score a $550 photon for $400.

    Bottom line is, carriers aren’t the ones making hand over fist on the devices, Apple sure is though!

  • Anonymous

    It’s not total crap.

    For Sprint, the profit margin from selling phones is currently approximately -160%.

    Apple charges CARRIERS roughly $600 for a 16GB iPhone 4. Carriers then subsidize the cost and sell at $199. They need to recoup the subsidy.

    If I went into a store and purchased a Motorola Photon with a new line for $200, then canceled the line and paid the $200 ETF, Sprint ends up LOSING money and I score a $550 photon for $400.

    Bottom line is, carriers aren’t the ones making hand over fist on the devices, Apple sure is though!

  • Anonymous

    That makes sense, they are selling $550 phones for 200 with contract so $350 ETF is fair. At least it goes down over time.

  • Anonymous

    Couldn’t not agree more. They give you a 500-700 dollar phone for anywhere from free to 300. ETFs are fair and 200 is too cheap, would leave them open to scammers. They do pro rate them so after 1 year it’s half the price.

  • Anonymous

    It’s possible to take a sprint phone and hook it up under page plus or cricket, not boost.

  • Anonymous

    It’s possible to take a sprint phone and hook it up under page plus or cricket, not boost.

  • http://silicoxvalley.com person287

    The ETFs in the UK are way worse. You basically save no money cancelling compared to just leaving it run without using it. They’re a ripoff, but it’s what people signup to.

  • DanlP

    Idiot. Must be buying his phone with his Obama money.

  • DanlP

    Best of luck. since Boost is iDEN and Sprint is CDMA I would say you are without a prayer.

  • Anonymous

    Ive seen more than one Evo 4G active on Boost. Data speeds would be depressing as hell but it should be possible.

  • Rottenapple1

    Boost also has CDMA since they’ve merged with Sprint. I’ve heard that Boost has 3G over CDMA, but not 4G. If Boost ever gets 4G I would switch in a heartbeat.

  • http://twitter.com/DanielBobke Daniel Bobke

    This is all about revenue model. Carriers don’t make any money on the phone sales – they make it on the recurring revenue of the monthly charges. I don’t have a problem with the ETF’s – and remember that by law they must be prorated (they got their butts sued for this before). So if you are half-way through your contract, you would only pay $175 to terminate.

  • http://twitter.com/DanielBobke Daniel Bobke

    This is all about revenue model. Carriers don’t make any money on the phone sales – they make it on the recurring revenue of the monthly charges. I don’t have a problem with the ETF’s – and remember that by law they must be prorated (they got their butts sued for this before). So if you are half-way through your contract, you would only pay $175 to terminate.

  • http://twitter.com/DanielBobke Daniel Bobke

    I don’t think this has anything to do with the launch of the new phones. This charge is for terminating your contract with Sprint – not for switching phones out. Good customers (long-term) can always switch out phones before their contract term – you just have to ask.

  • http://pulse.yahoo.com/_U2H7S4MG6PLQUVOA2CFNMZ2QUQ Ric Desan

    Well then the carriers need to quit the service charge gouging and re-educate the whiny public to buy their shit up front … sort like the rest of the world works!

  • TomL

    Why would Sprint increase the ETF? Are they not getting the iPhone and they’ll lose more subscribers? Are they having to pay Apple a higher subsidy when a subscriber chooses the iPhone on Sprint? Ergo, a subscriber would be expected to pay a higher ETF. What’s the answer?

  • Kendel85

    Well I bought the Photon 4G today and plan to swap it for the SGS2. Hopefully my ETF stays the same after the return!

  • gerry frawley

    And you did not read what I wrote.

    I said CARRIERS and CELL PHONE MAKERS are collaborating to keep prices artificially high so that they can justify contracts. Sprint is selling a $600 phone for $200 because it is to their advantage to do so. They get an eta, they get a two year contract.

    The pace of technology is such that these phones are getting cheaper and cheaper to build. They have exclusive arrangements with cell phone makers because exclusive arrangements keep prices high. They roll over price new models every six months because it ensures that old models do not drag down the price per unit and because they can charge a premium on “new” phones.

    It is a strategy that benefits the cell phone MAKER and the cell service provider, but not you the consumer.

  • gerry frawley

    Fox news called…they have more nonsense for you to swallow.

  • http://www.facebook.com/people/Derek-Kerton/826549688 Derek Kerton

    Wrong. For example, the Android OS is available for free from Google. ANY device manufacturer in the world can make an Android smartphone. That is a very competitive market. If the carriers conspired with, say, Samsung to keep the prices high, then LG or Motorola would offer one cheaper.

    If Motorola were “in on the conspiracy” then Archos or HTC, or Foxconn, or ZTE, or Huawei, or Siemens, or Ericsson, or Sanyo, Pansonic, Sharp, Fujitsu or INQ, or Google, or a new entrant in the phone industry would offer one cheaper. Do you really think that many companies, across many nations, are ALL conspiring to fake the cost of a high end smartphone?

    The ETF is very fair. You say Sprint conspires to raise the prices, but that flies in the face of the facts that the carriers actually ‘conspire’ to lower your price of phones, as an enticement to get you subscribed to their service. The contracts area also fair, as it ensures they can recoup their investment.

    The only thing about this that isn’t fair is that GSM carriers also SIM lock the phone. This is BS. If it is the consumer’s phone, what right does the carrier have to lock it to their network AS WELL AS enforce ETF through contract.

  • http://www.facebook.com/people/Pagan-Bloodrose/1446758526 Pagan Bloodrose

    This move is directly in line with the launch of the iPhone as an offset. We’re all going to pay to have the iPhone on the Sprint network, like it, buy it, or not.

  • http://www.facebook.com/people/Pagan-Bloodrose/1446758526 Pagan Bloodrose

    This move is directly in line with the launch of the iPhone as an offset. We’re all going to pay to have the iPhone on the Sprint network, like it, buy it, or not.

  • Xavier Carryl

    They should structure like this(at least I would)…

    $350 at the beginning
    From month 6, $225
    from here on to month 22, $12 off the ETF down to $33.

  • http://www.facebook.com/profile.php?id=100000186548552 Terry Knab

    One issue with ETFs…they’re a joke because…You can get an Optimus V (Virgin) for $150 with no contract. The Sprint version (optimus S) has a full retail of 299.99. If I were to be dumb enough to get an Optimus, I’d pay the 299 outright and have Sprint avoid putting me on a contract. The ETF is more than the phone costs!

  • Rushfan45

    I thought boost was on the sprint network why wouldn’t it work? And why would you want to go to boost from sprint when it is the same crappy coverage and service?