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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 allows customers to change plans without extending contract
Though you may be used to hearing Alltel boast of its consumer-friendly policy that enables users to change their plan at anytime without requiring a contract extension, now would be a good time to gear up for lots of similar chatter from Verizon. Reportedly, Verizon Wireless will soon allow its users to change up their plans mid-contract without asking them to sign on for any additional time, which should thoroughly excite those customers who've been regretting their plan decision since day two. So go on, Verizon customers, start scoping out which plan best fits your current lifestyle, because the new rule goes into effect on October 7th.[Thanks, Kiwi616]
Sprint to ditch traditional contracts with Xohm, rely on subscriptions
We've yet to find an average joe (or jane) who just adores that two-year agreement they signed to receive a single subsidized device on day one, and while Sprint hasn't been one to let folks off the hook early, it is trying a slightly different approach with Xohm. Reportedly, the carrier will be relying on "subscriptions," which will enable customers to save more when paying for larger chunks of time, while not forcing them into anything long-term. On the same token, this also means that you'll likely be paying full price for any hardware. Notably, the outfit's CTO also made clear that Xohm "would not be backed by what the industry calls service-level agreements," so don't count on any kind of minimum bandwidth guarantee. As for pricing, the numbers are apparently still being worked, but it was suggested that the service would "probably be based on tiers."[Via TechDirt, image courtesy of BroadbandReports]
Sprint raising SMS rates yet again, prevents contract breakage
We certainly hope this isn't just the beginning of yet another round robin of SMS price hikes, but reportedly, Sprint is aiming to jack up the cost of a casual incoming or outgoing text message (again) by five whole cents. Yep, that means every single SMS you send or get sent after October 1st while not on some sort of package plan will cost you one-fifth of a dollar, or in other terms, $0.20. Even worse, it appears that Sprint has made absolutely sure that you weasels out there won't be breaking free of your contract, as it purportedly stated that the increase "is permissible under its terms of service," and that users looking to get out will still be forced to pony up for that early termination fee. Shucks.
Fido and Rogers raising cancellation fee?
All of us have been enjoying local number portability in the lower half of the North America for some time, and we've been fortunate enough not having any carrier want to double the cancellation fee for those who wanted to port out. For those of you in the upper half of the continent, well... you aren't so lucky as Fido and Rogers are planning to do just that if you are signing up for new service (or making changes to your contract) in the wake of LNP. We think this genius marketing strategy would hurt their business more help it, don't you?
Sprint boosts protection plan fee, early out for contracts?
Major carriers' contracts have had the sticking power of Teflon lately, what with everyone suddenly deciding that 15 cents is the fair market value for text messages (no price fixing there, of course). Sprint's about to open the floodgates one more time, though -- this time with a bump to the monthly fee for its TEP (Total Equipment Protection) plan. The service goes from $6 to a whopping $7 on February 18 for both new and existing subscribers, giving folks partaking in the plan one more 30-day window to jump ship penalty-free and move to greener pastures (perceived or actual). Samsung i760, anyone?[Thanks to everyone who sent this in]Update: We're getting intermittent reports that this price hike may not lead to a get-out-of-jail-free card, possibly due to the fact that the TEP is not managed by Sprint proper but by a third party. As with past ETF skating opportunities, mileage often varies from day to day and from customer service rep to customer service rep; ultimately, we may not know until February 18 rolls around and reports start filtering in from the field whether folks are having any luck.
Cingular follows Sprint, ups pay-per-use texting fees to $0.15
Ah boy, here we go again. First there was drama galore when Sprint-Nextel jacked its pay-per-use texting fees from $.10 to $.15, convincing enraged users to demand their contract be terminated sans fees, and now we're headed right back into that same jungle with Cingular. In an apparent attempt to "sway" customers to add on a Messaging Package or Media Bundle, Cingular has announced that effective January 21, 2007, all SMS messages "sent or received on a pay-per-use basis" will cost you fifteen pennies. Unsurprisingly, some users aren't exactly thrilled with a portion of their bill getting hiked up by 50-percent (hey, it is what it is), and are looking for a way out. Thankfully, some users at PCSIntel, HowardForums, and other various locales have confirmed that if you get the right CSR on the line (and sound convincing enough), you can have your contract zapped without paying the $150 fee. Of course, this waiver depends on you not already having a texting package in place, but if you were ever looking for a way to sever your Cingular ties, now's the time.Read - PCSIntelRead - HowardForums
Lawsuit takes issue with T-Mobile's ETFs
You don't like early termination fees. We don't like early termination fees. In fact, with the exception of the carriers' bean counters, we can't think of anyone that likes 'em. But the fact of the matter is, a contract's a contract, and the ETF is the (relatively small, in the scheme of things) penance we pay for the right to break it. Be that as it may, a new class action suit brought against T-Mobile in an Idaho federal court claims that the nation's #4 carrier is breaking thirteen state consumer protection laws by charging customers $200 to wiggle out of their agreements. Specifically, the claim stems from the fact that T-Mobile doesn't make allowance for reducing the ETF based on the amount of time the user has been with the carrier, nor the "quality of service" they receive. For its part, T-Mobile isn't commenting on the suit, but we're guessing we can imagine the hand gesture they're doing their best to not display right about now. To the plaintiffs: can we recommend Sprint?[Via The Wireless Report]
