Recently in ETF Category

Sprint has detailed of its  pro-rated early termination fee (ETF) policy, effective November 2, 2008. Under the new policy, Sprint's ETF of $200 will decrease by $10 increments per month beginning in month six of a wireless customer's contract. Nine months later (the 15th month of the contract), Sprint customers have the lowest pro-rated ETF fee in the industry of $100. What's more, the ETF could drop as low as $50 before a customer's contract term expires.

The pro-rated ETF policy applies to all new service agreements beginning on or after November 2, 2008, regardless of whether you are a new customer with a new service agreement or an existing customer who has renewed your service agreement. It does not apply to service agreements entered into prior to November 2, 2008.

Sprint will continue its policy of giving customers 30 days to try Sprint service.With the Right Plan Promise, if a customer is not completely satisfied with Sprint, his or her service, phone or network coverage, the customer can simply return the undamaged phone and deactivate service within the 30 days.Sprint returns the customer's activation fees and waives the early termination fees, and customers are only responsible for charges based on their actual usage. The return policy varies slightly for existing customers. Visit www.sprint.com/returns for specific details.

Spring going to be lowering early termination fees for its customers, CEO Dann Hesse said in an interview.

The $200+ ETF will be lowered in December and  the fee will be gradually decreased for each month of the service contract.

The FCC is considering mandating how ETFs are set

Sprint Nextel Corp. violated California law in how it charged early terminations fees, under a ruling in Alameda County Superior Court from Judge Bonnie Sabraw on Moday.

The Associated Press reports "Sprint will have to pay $18.2 million in cash to customers who sued over the fees and credit $54.7 million to those who were charged but did not pay the fees."

The judge rejected Sprint's defense that federal law pre-empts California law on the case,

The FCC has not made a final ruling on ETF.

T-Mobile USA, Inc. today announced a change in their early termination fees (ETFs) Beginning on June 28, 2008, the ETF for customers who choose a one-year or two-year service agreement with T-Mobile will decline during the course of their contract. The ETF decreases from $200 to $100 if customers terminate service with 91 to 180 days remaining on their agreement; and decreases again to $50 with fewer than 91 days remaining. If customers terminate in the last 30 days of their term, the ETF is $50 or their standard monthly charge, whichever is less.   

The FCC received over 3700 complaints about early termination fees. FCC Kevin J. Chairman Martin said that consumers should be protected, while early termination fees can be a legitimate means of recovering legitimate costs and they shouldn't be abused. in an opening statement at the FCC hearing today.

He suggested clear rules that guarantee the following consumer protections:

1. The early termination fee should be reasonably related to the cost of the equipment the consumer receives. For example, a $500 phone shouldn't have the same early termination fee as a $50 phone.
2. The early termination fee should be prorated over the life of the contract.
3. Any contract for service should be for a reasonable length of time.
4. When a consumer renews his contract without receiving new equipment, the early termination fee should not be extended.
5. Finally, consumers should be able to take the phone home and receive their first bill to make sure the service and bill are consistent with what they expected, before an early termination fee kicks in.

Martin believes this set of rules is important to protecting consumers. The issue is growing in importance as the practice of charging early termination fees spreads to other communications industries such as video and broadband.

Verizon says that it told the Federal Communications Commission Thursday (June 12) that both consumers and the competitive wireless industry would fare better under an FCC-set national policy on early termination fees (ETFs) than under the confusing patchwork of inconsistent regulations and legislation being proposed in numerous states.

Testifying before FCC commissioners at a hearing on the fees consumers agree to pay if they terminate a cellular phone contract early, Tom Tauke, Verizon executive vice president of public affairs, policy and communications, said the wireless marketplace is functioning well and that his company acted early to expand consumers’ options.

“The bottom line is this: We listened to consumer concerns, and adjusted our policies,” Tauke said. “Customers can choose to purchase products and services with or without contracts that feature early termination fees based on their individual needs. And they have many choices — both from Verizon Wireless and our competitors — to meet their wireless needs.”

But, given the alternative of inconsistent state regulations, he suggested a list of ETF-related changes — many of which Verizon has already adopted — for FCC consideration, if the agency plans to take action.