| Have you ever signed a contract to subscribe to a | | | | termination fee. AT&T followed Verizon's lead and |
| certain type of service? If you have, then you | | | | other carriers namely, T-Mobile and Sprint, have also |
| probably encountered the term, termination fees. | | | | decided that they would begin prorating their ETF in |
| Service industries such as mobile phone service and | | | | the first half of next year. |
| subscription television commonly have termination | | | | Now, what does a prorated early termination fee |
| fees or early termination fees as they are more | | | | entail? The customer will still have to pay a fee for |
| commonly known. | | | | ending the mobile phone contract abruptly. However, |
| The process usually works this way. A person | | | | the amount will decrease as the decision to end the |
| purchases cellular phone service from a particular | | | | contract early gets closer to the contract end date. |
| wireless carrier. He or she might be required to sign a | | | | This means that a customer will no longer be forced |
| two-year contract in order to avail of a wireless | | | | to pay the original fee if he decides to end the |
| phone plan. Now that contract might stipulate a $200 | | | | contract. |
| fee in the event that the customer breaks the | | | | Here's a list of the current termination fee for each |
| contract or wants to opt out of it. | | | | major wireless phone carrier: |
| However, the imposition of these termination fees | | | | Alltel: $200 per phone line AT&T: Prorated Sprint: |
| has been criticized by consumer interest groups. | | | | $200 per phone line (to be prorated next year) |
| These fees prevent users from migrating to superior | | | | T-Mobile: $200 per phone line (to be prorated next |
| services so they are labeled as being anti-competitive. | | | | year) Verizon: Prorated |
| A lot of people would rather stick to their old | | | | So far, Alltel has not made any announcements on |
| network, rather than pay a significant fee to move | | | | making its ETF prorated. However, it may lose |
| to another network or wireless phone carrier. More | | | | customers if it remains as the only major mobile |
| and more people have spoken out about this unfair | | | | phone carrier to have a non prorated early |
| practice and it seems that their complaints have | | | | termination fee next year. It would be logical to |
| finally been recognized. | | | | assume that the company will also follow the |
| The clamor and the disputes about the unfairness of | | | | examples of other wireless networks to keep their |
| early termination fees in wireless phone contracts | | | | consumers happy. After all, the wireless phone |
| have lead to positive changes in the last couple of | | | | industry is hot contested and any shift in policy or |
| years. Verizon wireless was the first carrier to give in | | | | program of a cell phone carrier may send loyal |
| when it announced that it will prorate its early | | | | supporters looking for a better alternative. |