1st generation iPhone and Early Termination Fee

An ETF applies when you terminate your contract to move to another provider or discontinue service with your current provider. It doesn't apply if you're getting a new contract with the same provider.

More than likely, yes.

The first generation iPhone was not subsidized in the traditional way, as the iPhone 3G will be subsidized.

at&t did not provide a subsidy or a discount to you on the sales price of the first generation iPhone.

I became an at&t subscriber 3-4 months prior to the iPhone being available. I selected a phone that was subsidized by at&t agreeing to a new two year contract. I activated my iPhone as an existing subscriber agreeing to a new two year contract on my iPhone's activation date. I was not charged an early contract termination fee or any penalty when doing so, and I still have my original phone that was subsidized by at&t which I've used with my iPhone's SIM card on occasion.

The same should apply when purchasing the iPhone 3G, which will require agreeing to a new two year contract beginning on the activation date for the 3G iPhone with no early contract termination fee penalty for the existing iPhone - which was not subsidized in the traditional way as the iPhone 3G will be subsidized.

yeah since your service isnt being affected the termination fee still applies 😟

There is no early termination fee in this situation.

The ETF applies when leaving a cellular provider for a different provider while still under contract with a phone that was subsidized by the provider in the traditional way.

i didn't say there would be an ETF in this situation - unless you are directing your question to someone else.