Major Carriers Decided to Raise the Early Termination Fee for Mobile Phones

Written by GtoRMan Monday, 24 May 2010 06:35

Lately, AT&T reported to raise the early termination fees. This move is absolutely inviting several opinions. It seems that this is as an effort AT&T put through to match Verizon and to prevent potential loss of becoming the carrier’s exclusivity of iPhone. However, it is also confirmed that the raise doesn’t apply to all mobile phones holders.

In details, the early termination fee given only to smartphone devices by giving $175 to $325 leap, on the contrary the non-smartphone devices even get lower fee which is $25 to $150. This new service will be activated on around June. When AT&T gave confirmation regarding this new service, they declined the move was taken to prevent loss or to match Verizon. They stated that it was a fair approach meaning if you spend less on a mobile phones device the early termination fee will less as well and vice versa.

Speaking of other carriers that raise the early termination fee, there are some carries besides Verizon that are Sprint and T-Mobile which have made particular moves. Verizon still holds the throne of the early termination fee which is the $350 penalty for smartphones. It means there is a significant raise from last year that was $175. Meanwhile, Sprint and T-Mobile split the difference at $200 for all mobile phones. Moreover, each of the carriers includes provisions for lowering the fee for every continuous month of service because of one’s initial contract and sign-up.

AT&T stated that for customers who don’t want to deal with the term commitment, they will be directed to the great selections of devices at full retail price without the term commitment they can choose from. Regarding to this early termination fees raise, the Federal Communications Commission has paid attention to those four major carriers. The Federal Communications Commission suggested that consumers should be given the adequate amount of information before signing up for the new service, new mobile phones, or even both of them.

Still according to Federal Communications Commission, the four major carriers’ moves in raising the early termination fees have various rationales. They added that the raising fees may give significant impact to consumer’s ability to switch carriers. Therefore, you are suggested to seriously understand everything including the short term and over life of the contract as well as the whole services available before you sign up for one that includes the early termination service plan.