Quote:
AT&T charges customers who break a two-year contract within the first month a $175 early termination fee plus the $36 activation fee. That would bring the cost of the new iPhone to $411 for an unlocker, just slightly more than the old model's $399 price.
That math may mean it is still attractive to unlock iPhones for use on other networks and that AT&T will lose money on unlockers. Analysts estimate AT&T plans to subsidize the phones by more than $200 each.
But Ralph de la Vega, head of AT&T Mobility, said Monday that it and Apple are working on "penalties" for users who buy phones and don't activate them within 30 days. AT&T could, for instance, bar buyers who repeatedly buy iPhones and break the contracts from buying more.
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Judging by the current fees and penalties, there isn't much financial incentive to deter phone unlockers from abandoning their business model. I think much will depend on what AT&T and Apple decide on these new penalties, which I can only assume will be much more harsh.
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