EarlyTerminationFee
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FCC details ETF regulation proposal
Following prior comments that he supported standardization of early termination fees imposed by carriers, FCC head Kevin Martin went into detail last week at a public hearing on exactly what the Fed has in mind. As he's said before, he wants ETFs to be prorated -- which many carriers are now doing anyway -- and would like customers to be able to go over their first bill before deciding whether they want to slide out of their contract penalty-free. He also raises a point that the fee for breaking a contract on an expensive phone should be higher than that on a cheap or free phone; at first glance that seems logical, though we'd imagine that some of those "free on contract" phones actually end up costing more for a carrier to subsidize than handsets in the $50-and-up set. There's no indication yet that the FCC will actually end up wresting control of the nation's ETF policies, but the way Martin's talking, it certainly seems like they want to.[Via Phone Scoop]
AT&T's prorated ETF is live for new / renewing customers
We really, really hope you didn't ink a contract with AT&T over the weekend. If so, casually close your browser and attempt to avoid this post forever. Right on cue, AT&T has implemented its consumer-friendly prorated early termination fee, which enables new and renewing subscribers to have their $175 ETF drop by $5 each month they stick with the carrier and pay their bill. Yeah, the burn rate isn't exactly the greatest -- after all, you'll still owe $60 if you cancel with a month remaining -- but it's certainly a move in the right direction. [Via phonemag]
FCC chair supports standardizing ETFs
Most of the major US carriers have put forth efforts recently to improve the early termination fee situation for their customers, but FCC head Kevin Martin wants to take it still one step further by standardizing the contract provisions at the federal level. The wireless industry is in the midst of proposing a standardized ETF policy, too, and while Martin hasn't indicated whether he likes the existing proposal, its terms make sense and closely match what many carriers have already put together: prorate ETFs over the course of the contract and allow customers to back out within 30 days or 10 days after the first bill is received. At issue, though, is an additional provision that steals regulatory capability from individual states, a line item that many consumer groups don't support -- and for good reason, considering that a number of ETF lawsuits are underway at the state level. It sounds like the FCC is still a while off from forming a meaningful opinion on how this should exactly work, so for the time being, the carrier's own terms are still your bible for jumping out early.[Via RCR Wireless News]
Cellular South wants you so bad, it'll pay your early termination fee
Cellular South, which is headquartered in Jackson, Mississippi and provides service to around 5 million folks in its home state, coastal Alabama, the Florida panhandle and portions of Memphis, really wants your business. So much so, in fact, that it's willing to pay your early termination fee that'll undoubtedly bite you in the wallet as you attempt to port your number over from your current carrier. Of course, there are some strings attached: it will only pay up to $200, and that cash will be applied as credits towards your bill rather than bills towards your pocket. Still, the premise alone here is extraordinarily fantastic, and we'll go ahead and wish that more mainstream carriers would get the notion that they too should adopt such a consumer-friendly policy (and fast).[Via Phone Scoop]
AT&T's prorated ETF gets detailed
Nearly half a year after AT&T followed the crowd and announced that it too would be transitioning to a prorated ETF, the details have finally emerged. Starting on May 25th (read: don't ink a new AT&T contract on May 24th), new and renewing subscribers who enter into one- or two-year service agreements will "no longer be required to pay a single, flat early termination fee." Rather, the $175 charge will be lowered each month that one stays in contract by $5, which doesn't exactly zero out after 12 / 24 months, but we reckon it's better than being forced to cough up the full $175 with two months left on your deal. Oh, and those eying a month-to-month / prepaid plan will still find what they're looking for -- sort of a win-win, yeah?
Lawsuit could force Verizon to pay up for "illegal ETFs"
Simmer down, Verizon subscribers. A trial date has yet to be set, but apparently, an arbitrator has "certified a huge class action against Verizon Wireless" that could cost it nearly $1 billion in refunds of early termination fees. Reportedly, this case marks the "largest class ever certified in arbitration, with approximately 70 million members of the subscriber class." Essentially, the lawsuit is attempting to extract refunds for hordes of VZW customers that were charged with "illegal ETFs," and while a company spokesperson unsurprisingly declined comment, we're hearing that the trial could get going as early as mid-2008. That's two, who's next?[Image courtesy of Spusa]
Yahtzee! Sprint announces prorated ETFs, all four US nationals now on board
So Sprint busted out this really lovey-dovey press release today basically going over all the ways it takes care of its customers -- how you can upgrade your phone at a discounted price if you've stuck with 'em for a while, how they monitor your plan to make sure you're on the best one for your usage, and so on -- but there were a couple gems in there that are new and notable. First off, Sprint has announced here that they're moving to prorated early termination fees, bringing it inline now with all three of the US' other national carriers. Like T-Mobile, it intends to flip the switch on that action in early 2008. Secondly, starting next Monday, customers won't need to re-up their contracts to switch plans (why this was ever a requirement with any carrier simply bewilders us). Finally, the carrier says it plans to announce some "reward programs" next year for subscribers that've stuck with Sprint through thick and thin. No details there, but if they're gonna do up some crazy awesome plans and upgrade discounts (even better ones than it already has, that is), we're all for it.[Thanks to everyone who sent this in]
T-Mobile says "me too," gives in to prorated ETFs -- next year
Yep, sure enough, the prorated ETF craze is sweeping the nation. T-Mobile is the latest national US carrier to announce that customers will see their early termination fees decline over the length of their contracts, an obvious effort to stem a groundswell of hate getting launched in carriers' directions lately regarding contracts, ETF policies, and other miscellany regarded as unfair in consumer advocacy circles. One little snag, though: T-Mobile's just announcing its intention to move to prorated ETFs here; they're still crossing their T's and dotting their I's on the new legalese, it seems, and it's expected to take effect in the first half of next year.
Court clears way for suit hating on T-Mobile's locking, ETF policies
Looks like someone doesn't want their free-on-contract handset too badly! The California Supreme Court has thrown down its seal of approval to proceed with a lawsuit challenging a couple basic principles of carrier subsidies -- locked handsets and early termination fees -- with T-Mobile begin named as the lucky defendant this time around. The carrier had previously tried to get the case thrown out (as all good corporate lawyers should) by pointing out that its contracts require customer disputes to be arbitrated rather than taken to court, but the plaintiff's legal team successfully argued that the claims they were bringing against T-Mobile weren't arbitrable. So help us out here: what does a "win" for the public good constitute in this case, court-compelled unlocks and penalty-free contract terminations or the continued availability of heavily-subsidized handsets? Is the prorated ETF a good compromise?
AT&T moves to prorated ETFs, too
Remember when a la carte messaging fees started to go up earlier this year and a couple carriers started to test the waters with unlimited texting plans, it ended up sweeping the whole freaking industry in a matter of a few months? Looks like the move to prorated early termination fees could be the next big move, with AT&T following Verizon away from hefty fines for canceling plans mid-contract. The company has announced that ETFs will be lower the further you are into your agreement period to offer subscribers "more flexibility," while folks simply wanting to change their plans -- not their carriers -- will no longer be required to agree to new terms. Any other carriers want to join the bandwagon?[Via Phone Scoop]
Verizon Wireless finds soul, wants to prorate early termination fees
We tend to give our wireless carriers a pretty tough time around here, but not without just cause. Case in point: early exit fees. It's semi-understandable to charge the $150 to $200 contract termination fee when folks cancel near the beginning of their two-year contracts, however, that's a bit steep if you cancel say, 18 to 23 3/4 months in. Verizon Wireless, however, has gone on record with plans to prorate early termination fees starting this fall. If so, they would be the first major US carrier to lesson exit fees on departing customers the closer they got to the end of their contract. That's certainly a nod in the direction of consumer satisfaction and welcome news for us early adoptin' nomads with an innate fear of committal. Sure, regulators must still "review the details" but the FCC chairman, Kevin Martin, already seems stoked by the benefit to customers in what "could signal a new trend among wireless carriers." We'll just have to sit tight for now and hope these dominos begin a rapid, and timely tumble.
