The wireless company, Sprint has planned to use the same strategy as Verizon and AT&T in order to charge the users $350 termination fee for all advanced device, which starts on 9th of September. It is done to make sure that customers of Sprint will unable to get new hardware and then get rid of their plan of service. According to SprintFeed’s blog, the policy will be changed effectively just a few weeks before the release of new product of Apple, iPhone5. There is also a rumor that iPhone5 will be offered by the Sprint.
In order to keep the longer service contract of customers, the subscribers of Sprint charged $200, which prorated over the contract’s term. Currently, there is a boost fee from $200 to $350, likely Sprint, the Verizon and AT&T increased the cost of the cheap Smartphones, which have become much-more-expensive phones. An early termination fee of AT &T for Apple’s product, iPhone, was $175, and the iPhone was at cost of $650. The company increased the fee because they were afraid that the customers just wanted to buy iPhone as contract‘s part and they then stop using the provided service. Previously, there was a minority of US customers carried expensive and up-to-date Apple’s product, iPhone.
Verizon increased Smartphone termination fee to $350 at the end of 2009 when they started to put Droid-branded phones running Android in the technology market in replacement of Blackberry devices. In the US , iPhone subscribers of Verizon are raising dramatically which could knock down the carrier of Android phone. Interestingly, based on experience of Verizon in selling iPhone, Sprint could sell 6 million iPhones in 2012, according to the estimation of Analyst‘s Piper Jaffray, Gene Munster.