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Home > Cell Phone News > Sprint to Join Rivals in Cutting Early Termination Fees Cell Phone News Feed

Sprint to Join Rivals in Cutting Early Termination Fees


Tue Oct 21, 2008 9:53 pm

Following its competitors, Sprint will soon begin reducing the fees customers face for canceling their cell phone service early.

CEO Dan Hesse said today that Sprint could start lowering the early termination fees as soon as December, once the company updates its billing software.

The fee of $200 or more is charged to consumers who cancel their plan before their two-year contract ends.

The new policy would trim the fee for each month a subscriber stays with the plan. Rivals AT&T, Verizon Wireless and T-Mobile already prorate their fees.

In the summer, a California judge said such fees violate state law and ordered Sprint to reimburse customers more than $73 million. Verizon Wireless settled an identical lawsuit for $21 million.

Carriers say the termination fees are necessary to recover the cost of cell phones, which are typically subsidized under long-term contracts. Consumer groups say the fees are unreasonable and are intended to discourage customers from switching to another carrier.


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Reader Comments (1)


1. Posted by hey hey hey Sat Oct 25, 2008 9:50 am

yeah, and If you were just recently charged with or are currently being charged an early termination fee, you can still get in on the next case to have it reimbursed to you. look up scott bursor

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