AT&T selling refurbished iPhones, not for prepaid

InformationWeek article, I immediately thought, “oh, prepaid!” After reading the few paragraphs, though, I found that this is not the case. In fact, I don’t like this idea on two levels. Yes, it’s nice that AT&T will sell refurbished iPhones. It’s a great way for customers to save money, and in times like these that’s always a plus. However, it still has that nasty two-year contract attached, making a refurbished iPhone 3G, at a $50 discount, much less palatable. The units are mainly available via the company’s website. New customers or customers looking to add a line can order one and have it delivered to their door. They then hook the phone up to iTunes, where they can activate service, much like customers did for the first round of iPhones. The 8GB model will cost $150, and the 16GB model will run $250. So yes, there is still a subsidy involved, meaning you have to sign a two-year agreement. Customers who do not activate the phone within a certain period of time will be charged an early termination fee. As long as you can stomach the extra $175, I guess you can get it without a contract. My other gripe with this is that only new customers or customers seeking to add a new line can buy a refurbished iPhone online. Upgrades have to be done at an AT&T store, and not all of them will have refurbished iPhones. This happens all the time in the wireless industry. Carriers neglect their current users in favor of ones they’re luring. ]]>