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