Makes sense on their part since Verizon will probably debut their iPhone version late next month. People will want to drop ATT to go to Verizon so their jacking up ETF makes business sense because it will make people think twice about getting out of their contract. I have been with ATT for many, many years and my wife has an iPhone that she absolutely loves and won't give up, but my phone I can't use at work because I get 0 bars while everyone that has Verizon, Sprint, T-Mobile get exceptional reception. ATT engineers say that I am on the fringe of their tower and they won't do anything about it for a year or more. So next month I probably will switch, I am out of contract so no ETF! I have been dragging this out for this reason. I see no problem with companies charging the ETF because it prevents people from dropping service right and left.