AT&T Contract Changes - The UpStream

AT&T, the country's largest provider of wireless phone service, has followed the lead of Verizon Wireless in changing its contract terms. From now on, the early termination fee will be prorated, based on the customer's time into their contract (the farther along, the lower the fee).

Based on what we know about the wireless industry and the way handsets are priced, we suspect this will be reflected back into the pricing of the phones themselves.

The important thing to remember is, once you get pissed and destroy your iPhone, it won't cost as much to get out of contract.