Sprint and T-Mobile join Verizon on pro-rating early termination fees
November 12, 2007 – 5:05 pmVia Yahoo News, Sprint & T-Mobile are discussing pro-rating early termination fees.
Sure, there are several details to be worked out, but, like Sprint allowing phones to be unlocked, which I wrote about recently, this is another move in the right direction. I don’t believe there should be a contract regardless, but thats another story.
The reality is, at least in the short term, you are still going to have to buy a new phone to work on your new providers network, which will most likely be subsidized by the carrier.
Of course, new companies, such as Cricket Wireless are sprouting up that allow you to transfer a number to their service and do not require any contract and offer unlimited services such as unlimited anytime minutes and web access.
Both Sprint and T-Mobile say they’ll start pro-rating early termination fees starting in 2008—a policy that Verizon Wireless adopted nearly a year ago, while AT&T got on board last month. The general idea is that instead of paying a flat $200 fee for dropping your carrier before your contract is up, the fee declines depending on how much time is left: for instance, on Verizon Wireless, you’ll pay a $175 fee if you cancel in the first month, and the charge drops $5 each proceeding month (so you’ll pay a $115 early termination fee if you’re a year into your 24-month contract).
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