Why the surprise over AT&T's increased early termination fees?

AT&T announced on Friday that it was increasing its early termination fees for smartphone users (hint, hint, iPhone users), and reducing them for non-smartphones. The big question is not why, but rather why the surprise?

AT&T's move comes months after rival Verizon made the same sort of move. In November of 2009, Verizon Wireless doubled its smartphone termination fees in November, from $175 to $350. In a way, the move makes sense; smartphones make up a bigger percentage of sales nowadays and carriers pay OEMs much more for those devices than standard handsets.

Currently, the early termination fee is $175, period. The new rules are as follows: beginning June 1, 2010, new and existing service agreements will have an early termination fee of $150 (down $25), while smartphones will go up to $325 (ouch).

For non-smartphones, the ETF will be pro-rated by $4 for each month of service that a customer remains in their two-year contract. For smartphones, the pro-rating will be $10 for each month.

While there has been a hue and cry up around the country over the change in AT&T's ETF, it was a foregone conclusion that the company would change its ETF policy following Verizon's move. While the FCC has questioned Verizon about the higher ETFs for smartphone users, it hasn't taken any action.

Additionally, it should be obvious that if indeed AT&T's exclusivity for the iPhone ends at the end of 2010, which is the current thought, these new ETFs will give customers more reason to stay with AT&T rather than jump to a Verizon iPhone. Of course, AT&T CEO Ralph de la Vega just said a few days ago that a large-scale abandonment of AT&T for Verizon wouldn't happen, simply because it was too much of a hassle. Just playing it safe, eh, AT&T?