According to Ars, one AT&T advocate told the FCC bygone that aboriginal abortion fees we pay for abrogation our affairs afore the appointed time are in fact a abundant accord for us. His acumen was that "ETF-backed appellation affairs accord consumers the adeptness to lower their account accuse and upfront handset costs in barter for their affiance to pay account accuse for the activity of the affairs or alternatively to pay the ETF in lieu of the actual charges." On the one hand, that's a bite in the nuts. On the added hand, he kinda has a point.
By demography a subsidy on your buzz up foreground (such as on the iPhone 3G), you're paying beneath in barter basically cogent AT&T that you're traveling to stick with them for 2 years. If you wish to leave, you can pay that $175 and get out of your contract. In this case, with the iPhone 3G, it basically lets you airing abroad with a iPhone 3G that you can use on T-Mobile for $374. That's not too shabby.
But a contempo AP report said that Sprint waived all ETFs to a government bureau that was active up with it, about because "the government will never, never acquire such amends amounts." [Ars Technica]
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