Monday, February 8, 2010

AT&T, Sprint and T-Mobile Also Targets of FCC ETF Inquiries

For the past few months, Verizon has been bombarded by questions regarding its raised ETF or early termination fee. However, the FCC appears to have widened its scope and included other major US wireless carrier's in its inquiries.

The commission has broadened it's inquiry into termination fees because "there is no standard framework for structuring and applying ETFs throughout the wireless industry." Letters were sent asking a series of questions probing how each carrier's ETFs are determined and applied. T-Mobile, AT&T and Sprint were among the recipients.

Google was also included among the FCC's targets. The company has caught the attention of the commission due to the equipment recovery fee it imposed on the Nexus One.

The companies were asked to detail how each discloses early termination fee information to consumers in advertisements, in statements on corporate websites, in brochures and sales scripts and in monthly bills.

Well, let's see if this inquiry forces these companies to take a softer stand on their ETF policies. Verizon felt the pressure and took off ten devices from products under its increased ETF rates. It will be interesting to see how the other carriers will respond.

Thta's it for this wireless contract policy update. Tune in to this wireless contract blog for more news and updates.

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