FCC Chairman Has Fix For Cell Early Termination Fees

June 14, 2008

FCC Chairman Kevin Martin has laid out the foundation for what he believes is the best way to fix early termination fees for cell phone providers such as Verizon Wireless, AT&T, and others.<br /> ...Phoenix (ChattahBox) – FCC Chairman Kevin Martin has laid out the foundation for what he believes is the best way to fix early termination fees for cell phone providers such as Verizon Wireless, AT&T, and others.

The new guidelines laid out by the FCC chairman will regulate carrier ETFs (early termination fees.)

The first change the FCC chairman is calling for is to link the cost of an early termination fee to the cost of the phone.

Basically, the cost of an early termination fee for a $500 phone would be more than one for a $100 phone.

The other major point presented by Martin was to prorate the contract over its life. This means you only have to pay an ETF based on how much of your contract is left.

The FCC also wants to keep contracts at a reasonable length, and to also give consumers the chance to back out of the contract until they receive their first bill without having to pay an ETF.

FCC Chairman Kevin Martin put this out in a statement on the official FCC website.


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