Confirmed: iPhone 3G hack – buy, cancel contract, keep phone – sort of works
  • 30 Comments
by John Biggs on September 17, 2008


Reader Mike writes:

I recently sent you guys an e-mail about how I was going to try to get the iPhone 3G and then cancel the AT&T service within the first 30 day to avoid an early termination fee. Well, the [charming folks] got me. I tried canceling it and it turns out if you cancel within the first 30 days Apple AND AT&T want you to return the iPhone wherever you bought it from, PLUS pay a 10% restocking fee. So, luckily I bought 2 of them for $660 with tax included. I am going to pay almost $400 in termination fees but one iPhone is on eBay right now and it is racked up to $600 so far (4 days left). Hopefully it will go higher so some of my money will get paid back to me and I’ll eventually just be paying the normal $300 for the first iPhone that I’m keeping. To wrap everything up you will ALWAYS have to pay an early termination fee or turn in your iPhone no matter what. Can’t they just give us a break?

I bought a SIM card called iSmart. www.kuso8888.com sold it to me. My T-Mobile service shows up for a little bit then goes back to No Service. The SIM card goes right under my T-Mobile SIM and I insert them together.

So wait a second, Michael, you actually got what you wanted: you bought two iPhones, got out of the contract, and basically made back your entire investment in aftermarket sales. With a little elbow grease an know how you can easily get the 3G to run any GSM network. I’d say your experiment was a success. Anyone else try this?

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  • Seems to me that he bought 2 iPhones, held onto them for 30+ days, then cancelled both lines. So, he got hit with the etf summing up $400. He’s selling one on ebay, but what is he talking about with the second $300 one?

    I understand the T-Mobile bit, but hm… wouldn’t it just be easier to jailbreak the bad boy?

    • I only had them for 3 days now and still got hit with the early termination fee. They don’t allow you to skip on the early term fee if you bought the iPhone. If the one sells on ebay for about $700 you take my total $660 (2 iPhones) + $350 (etf) = $1,010 (total) – $700 (extra iphone sold on ebay) = $310 for 1 iPhone I get to keep.

      That sums it all up for you.

      Also, jailbreaking is only to get 3rd party applications, it doesn’t unlock the phone. There is no unlocking software yet for the 3G to work with any other network; only SIM unlocks are.

      • I don’t get it. I really want to do this, but, why were you able to keep the iPhones? You said ATT and Apple wanted you to return them if you kept them for less than 30 days–which is what you said you did?

  • i have a question i read that you can buy the iphone without contract and you will have to pay 400$ additional to the price is this option available? i do not care to pay more i just want the iphone

  • I think it took too much time to do this

  • Cheapest way to legally aquire an iPhone 3G (aside from eBay)-
    AFAIK, the ETF is a set $175.00 USD. If you cancel a 2 yr. agreement after the first 30 days, you pay the ETF and keep the iPhone – you have also already paid the 1st month’s (at least $70.00) worth of service as well.

    Slightly more expensive legal way –
    If you were permitted to purchase the iPhone 3G outright w/o contract(is a failed credit check still needed to do this?).

    Also check out –

    http://www.phonenews.com/iphone-3g-the-dirty-faq-3734/

  • do u have to pay the monthly charge included… oh and does that ruin your credit.. i went into bestbuy the other day and they told me if u get the iphone with the 2yr contract and try to end it that it will eventually ruin ur credit …and they willl charge u 500 for the phone u didnt return that u have to return the phone when u end the contract,,,, idk what to do ? i was approved for no doposit but i dont want to ruin my credit but i like the phone alot!!!!!!!

    anyone who knows write back thanks…

  • Please explein me more about the sim you bought, i wanna buy one like that but im not sure. PLEASE.

  • I have 5 lines with AT&T, and get 5 iphones at different apple store. Before apple notice that, I have alreay got 50 iphones already. They don’t let me get no more. BTW, I bought all the unlock sim from http://www.kuso8888.com. They give me a pretty good deal on that. Those sims work great except a couple one don’t work. But they exchange them for me.

  • I have 5 lines with AT&T, and get 5 iphones at different apple store. Before apple notice that, I have alreay got 50 iphones already. They don’t let me get no more. BTW, I bought all the unlock sim from http://www.kuso8888.com. They give me a pretty good deal on that. Those sims work great except a couple one don’t work. But they exchange them for me.

  • hi i want a friend whos based in the us to buy an iphone 3g, cancel the contract after 30 days and then send it to me. he claims it will cost him around 650 dollars excluding the shipping. can someone please give me exact breakup of the costs invovled like the initial cost, first month service cost and the termination fee. how much will it actually add too?? really want an iphone fast….please help

    • iphone enthusiast - July 25th, 2009 at 1:38 am GMT+5

      iphone 3g 16gb 299

      cheapest voice plan $39.99

      data plan (mandatory) $30

      activation fee $36

      early termination fee $170

      total around $570

  • 480 to break 8 gig contract

    580 to break 16 gig contract.

    end.

    credit ruined?

    your call.

  • well i think u all are wrong to day is Jan. 31 2009. i have had my iphone one week and i cancelled my contract with them. they didnt say anything but why do i wanted to do that. NOW I HAVE AN IPHONE THAT I PAYED ONLY 300 for and no cancellance fee. i dont know what u ppl are doing wrong.

  • Yes how exactly did you do this? I hear that you can not do that so what worked for you but failed for other.

  • I bought my 3G iPhone from Greece last month. It has really wonderful features, I enjoy it. You can contact to good person who can help you out. Here is his email ID zoomobileslimited@gmail.com

  • @new to this !!! did you cancel your service via phone or in the store??? and than they let you keep the phone

  • hello everybody. i have a couple of questions.
    1) if i’m buying the iphone with a two-year contract it would be just a $213? or i have to spend some more money for activating? can’t get it.
    2) can i buy, for example, more than 3 iphones?

    • With all the fraud with the iphone recently, at&t has taken stronger measures.

      First of all, if you purchase an iphone (16g 3GS) you pay the 199+tax. They will run your credit, depending on the score a deposit may be required. The MINIMUM plan is the 450mins and the REQUIRED 30.00 data package. Trust me, PLENTY of people call in to try to take it off, and it works… for a very short time. If you put your SIM card into the iphone you may not see charges on your first or second bill. But they DO find the iphone. Not only will the data plan be added back on (nothing you dispute:its in your contract) you will also be charged and held liable for ALL pay-per-use data charges on that phone. The data package is not required bc att wants to make money. It is required b/c the phone was built to have all updates and applications run using the internet. Even sending SMS or placing a call requires data. If the internet was blocked on the phone, it would work for a short time, but then stop. Those people who claim to be purchasing iphones and selling them to make a profit are also being caught. At&t now has a specialized “ifraud” dept in which we track iphone accounts. Again, you may not be found at first… however they do find you…. and if the account is cancelled w/a waived ETF they will do one of two things: charge the ETF… or (if the account was cancelled w/less than 30 days service) reactivate the account. They will send you a courtesy message explaining that you may call in after the 30 days to cancel the account but still be charged the early termination fee as per your contractual agreement and the fact that you did not return the phone. You will not get that message if you sold the phone. That leaves your account active and accumulating more charges and resulting in being cancelled for nonpayment, charged the etf and ending up in collections and being sent to an outside collection agency. If you think you can find a way around that system, good luck. The only person who was able to commit said fraud successfully is now working with the iphone fraud department… after he finished his sentence… Do you really want to bother with this when the phone is only 600.00 without a contract? If you want to unlock it just ask a friend w/att service to purchase one for you and give them the money. Less hassle, no negative credit or additional consequences and you have your iphone.

      • So, Meg,

        Lots of word. Wow!

        From your explanation is clear that it is totally legit and safe to:

        1. Get an iPhone for $199+tax (around $215).
        2. Pay $36 for activation.
        3. Pay $70 for 1 month data+voice.
        4. Cancel in 1 month and 1 day.
        5. Pay ETF of 175.
        6. Keep your iPhone for a total of less than $500 while having enjoyed a month of data and voice service from AT&T.

        Does this seem right?

        I can decide on my own whether the $100 price difference and the 1 month data+voice service is worth the trouble of getting into contract and then terminating it. Comments on that won’t be necessary.

      • Someone obviously doesnt know how to commit fraud properly. Lol.

      • Scare tactics have never worked in history.

  • Oh, and I forgot the prorated amount for the 1 more day of service after the first month. The final number is still under $500 though,

  • It actually won’t hurt your credit because you are paying the termination fee. If you did not pay the termination fee then it would be sent to collection.

  • Did anyone else catch that? Throughout the post Megs refers to At&t in the third person, until in one particular sentence something slips out…

    “At&t now has a specialized “ifraud” dept in which we track iphone accounts.” –Megs

    Megs is clearly an At&t spy! Watch what you say, big brother is watching…

  • I have a question for Megs: if I give a person with att the money to buy a phone for me, won’t they be forced to pay for an extra line, data plan, etc, AND a termination fee??

  • I activated 3 lines with AT&T, 2 Samsungs and 1 iPhone. We realized that they have no coverage in my brother’s apt in NH so I cancelled all 3 lines. They are returning their phone in NH and I might be returning my iPhone here in MA. We cancelled within 3 days, so no act fees or term fees. We will barely have a bill because it will be prorated to 2 or 3 days of service. I have 30 days to return the iphone with a $20 restocking fee. But if I do not return the iPhone, will they charge me the ETF or the subsidized amount. Is is worth it to keep it and pay the diff and unlock it to use with T-Mo? Hmmmm……

  • LoL!!! ur right C.stark

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