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3Gstore
EVDO Addict
Joined: 19 Sep 2006
Posts: 3160
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 Posted: Tue Oct 21, 2008 2:24 pm Post subject: Sprint to join rivals in cutting termination fees |
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| Quote: | Sprint to join other cell phone companies in trimming early termination fees
KANSAS CITY, Mo. (AP) -- Following its rivals, Sprint Nextel Corp. will soon begin trimming the fees customers face for canceling their cell phone service early.
Chief Executive Dan Hesse said Tuesday in an interview with The Associated Press that Sprint could start lowering the early termination fees as soon as December, once the company updates its billing software. The fee of $200 or more is charged to wireless subscribers who end their service before their two-year contract ends.
The new policy would reduce the fee slightly for each month a subscriber stays with the plan. Competitors AT&T Inc., Verizon Wireless and T-Mobile USA already prorate their fees.
A California judge this summer said such fees likely violate state law and ordered Sprint to reimburse customers more than $73 million. Days before that ruling, Verizon Wireless agreed to settle an identical lawsuit for $21 million.
Wireless companies say the termination fees are necessary to recover the cost of cell phones, which are typically subsidized under long-term contracts, and to defray the costs for signing up new customers.
Consumer groups, however, say the fees are unreasonable and are intended to discourage customers from jumping ship to another carrier.
The wireless industry has asked the Federal Communications Commission to regulate the fees and prevent other state class-action lawsuits from going forward. FCC Chairman Kevin Martin this summer discussed a preliminary plan that would call for wireless carriers to prorate the fees, but that plan hasn't gone anywhere since then. |
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waynefoutz
EVDO Junkie
Joined: 31 Mar 2008
Posts: 361
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| Posted: Tue Oct 21, 2008 3:51 pm Post subject: Re: Sprint to join rivals in cutting termination fees |
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| Alex wrote: | | Quote: | Sprint to join other cell phone companies in trimming early termination fees
KANSAS CITY, Mo. (AP) -- Following its rivals, Sprint Nextel Corp. will soon begin trimming the fees customers face for canceling their cell phone service early.
Chief Executive Dan Hesse said Tuesday in an interview with The Associated Press that Sprint could start lowering the early termination fees as soon as December, once the company updates its billing software. The fee of $200 or more is charged to wireless subscribers who end their service before their two-year contract ends.
The new policy would reduce the fee slightly for each month a subscriber stays with the plan. Competitors AT&T Inc., Verizon Wireless and T-Mobile USA already prorate their fees.
A California judge this summer said such fees likely violate state law and ordered Sprint to reimburse customers more than $73 million. Days before that ruling, Verizon Wireless agreed to settle an identical lawsuit for $21 million.
Wireless companies say the termination fees are necessary to recover the cost of cell phones, which are typically subsidized under long-term contracts, and to defray the costs for signing up new customers.
Consumer groups, however, say the fees are unreasonable and are intended to discourage customers from jumping ship to another carrier.
The wireless industry has asked the Federal Communications Commission to regulate the fees and prevent other state class-action lawsuits from going forward. FCC Chairman Kevin Martin this summer discussed a preliminary plan that would call for wireless carriers to prorate the fees, but that plan hasn't gone anywhere since then. |
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I always thought the fees were to offset the subsidized equipment. I wonder if this means no more $49 phones? |
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3Gstore
EVDO Addict
Joined: 19 Sep 2006
Posts: 3160
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| Posted: Tue Oct 21, 2008 4:10 pm Post subject: |
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the bold text in the release indicates they will be doing declining ETF like verizon does now.
so there will still be ETF's, just not as stiff as they have been. |
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dario
3Gstore Employee
Joined: 03 Jan 2008
Posts: 227
Location: Tampa Bay Florida
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| Posted: Tue Oct 21, 2008 4:21 pm Post subject: |
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Glad I live in California where ETF are illegal 
California Judge Rules ETFs Illegal
tech.yahoo.com — "In one of the most significant legal rulings in the tech industry this year, a Superior Court judge in California has ruled that the practice of charging consumers a fee for ending their cell phone contract early is illegal and violates state law." |
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