T-Mobile Alters its Wireless Contract Early Termination Policy

Here's a mobile phone contract update for T-Mobile subscribers. The carrier appears to have changed its policy towards the Early Termination Fees (ETF) for its mobile phone contracts.

The new T-Mobile Early Termination Fees (ETF) policy indicates that consumers that are moving out of the carrier's coverage area or overseas will be charged with the fee. However, customers moving overseas due to military deployment will not be charged with an ETF.

This T-Mobile Early Termination Fees (ETF) policy change took effect on February 8th, 2011. This means that consumers who cancelled service (without paying the ETF) before February 8th will not be charged with the fee.

So why did T-Mobile enforce this new cell phone contract policy? Well, the word on the street indicates that the change was made to discourage the abuse by some consumers who are specifically moving out or signing contracts before they knew they were moving overseas.

What do you think of this change? Do you think that it's fair?

Stay tuned for more wireless contracts news and information.

AT&T's Grounds for Terminating your Wireless Agreemeent

Do you know that AT&T can terminate your wireless contract without notice? Well, you should. After all, its part of the company's terms and agreements.

You can terminate your wireless contract with a carrier but you need to pay an early termination fee and other penalties. However, AT&T can also "interrupt or terminate your Services without notice" if they find you guilty of the following violations:

• for any conduct that we believe violates this Agreement,
• if you behave in an abusive, derogatory, or similarly unreasonable manner with any of our representatives,
• if we discover that you are underage,
• if you fail to make all required payments when due,
• if we have reasonable cause to believe that your Equipment is being used for an unlawful purpose or in a way that (i) is harmful to, interferes with, or may adversely affect our Services or the network of any other provider, (ii) interferes with the use or enjoyment of Services received by others, (iii) infringes intellectual property rights, (iv) results in the publication of threatening or offensive material, or (v) constitutes spam or other abusive messaging or calling, a security risk, or a violation of privacy,
• if you provided inaccurate credit information, or
• we believe your credit has deteriorated and you refuse to pay any requested advance payment or deposit.

I would avoid committing any of these errors if you want to continue your service with AT&T.

That's it for this piece of info on the wireless contracts of mobile hones. Tune in every week for more mobile phone contracts information.

T-Mobile's Early Termination Fee Schedule

T-Mobile has a pro-rated ETF (early termination fee policy) which means that consumers pay depending on the length of time have left on their mobile phone contracts. However, this system can also be confusing since consumers do ot have a fixed penalty for terminating a T-Mobile contract.

So how do you calculate your T-Mobile early termination fee?

The carrier has provided an ETF schedule that allows subscribers to estimate their fees as long as they know their contract start date (which is also listed on their wireless contract):

As listed in these Terms & Conditions, the early termination fee is $200, if termination occurs with more than 180 days remaining on your term; $100, if termination occurs with 91 to 180 days remaining on your term; $50, if termination occurs with 31 to 91 days remaining on your term; and the lesser of $50 or your monthly recurring charges (including any applicable taxes and fees), if termination occurs in the last 30 days of your term.

If you wish to know exact information about the term of contracts and the early termination fee that would apply if you cancel your then you should can call T-Mobile Customer Care.

That's it for this post. Tune in every week for more on mobile phone contracts and wireless contract topics.

AT&T's Open Letter for ETF Increase

Last may, AT&T decided to change its termination fee to $325 for smartphones and $150 for feature phones. However, the announcement was preceded by leaks that draw the ire of some consumers. To counter this AT&T released an open letter to explain the ETF increase to their "valued" customers.

I know that this open letter is round two months old. However, this might offer some relief and information to consumers who are unaware of the reasons behind the AT&T' early termination fee increase for the best smartphones they can offer.

Here's the AT&T Open Letter:

An Open Letter to our Valued Customers

May 21, 2010

At AT&T, we work hard every day to provide you with a great wireless experience at competitive prices.

One of the ways we do this is to offer you the industry’s leading wireless handsets below their full retail price when you sign a two-year service agreement. In the event you wish to cancel service before your two-year agreement expires, you agree to pay a prorated early termination fee (ETF) as an alternative way to complete your agreement. Of course, if you prefer not to enter into a term commitment, we offer the same great selection of devices at their full retail price with no term commitment or ETF, as well as prepaid GoPhone options.

We are now making changes that will lower the ETF for many customers who agree to new term commitments, and will increase it for others. Current AT&T wireless customers who are within their two-year consumer service agreement or have an existing enterprise service agreement will see no change to their current terms.

Beginning June 1, 2010, we will reduce the ETF in new and upgrade two-year service agreements for all customers who are buying basic and quick messaging phones. Whether you are new to us or upgrading handsets, the ETF will decrease to $150 from $175, and be reduced by $4 for each month that you remain with us as a customer during the balance of your two-year service agreement. After the term commitment is completed, the ETF will no longer apply.

For customers who enter into new two-year service agreements in connection with the purchase of our more advanced, higher end devices, including netbooks and smartphones, the ETF will increase to $325, and be reduced by $10 for each month that you remain with us as a customer during the balance of your two-year service agreement. After that, the ETF will no longer apply.

Thank you for being an AT&T customer. We hope you enjoy your AT&T wireless device and service. We appreciate your business and we will continue to work hard to earn it.

That's it for this post. Tune in next week for more news and information on wireless contracts.

Terminating a Wireless Contract to get the iPhone 4G

The release of a new iPhone always triggers a consumer migration from other carriers to AT&T. Consumers find all sorts of ways to abandon their contract just to get Apple's prized smartphone. This years iPhone 4 is expected to be no different. Here are some points that you might want to consider before terminating your mobile phone wireless contract to get the iPhone 4.

First you need to think about the ETF or early termination fee of your carrier.

Verizon too has two tiers of ETFs, $350 for smartphones, and $175 for feature phones.

Sprint's ETF starts at $200 and goes down by $10 every month beginning after the first four months.

T-Mobile ETF is $200.

Then you need to consider one you have terminated you contract. What to do with your old phone. Well, there are plenty of options.

First you can get some of your money back by selling it on Craigslist or eBay.

You can also donate your old handset to charity, or one of the many programs that delivers old or unwanted handsets to members of the military, or people in developing countries. You can also donate it as a cell phone for seniors.

That's it for this post and good luck with ditching your old wireless contract for the new iPhone 4. Tune in to this blog for more on wireless contracts news and updates.

The FCC's Advice on On ETFs of Wireless Contracts

The recent increase in early termination fees more mobile phone contracts of AT&T and Verizon Wireless has moved the Federal Communications Commission to issue advice addressed to cell phone consumers. The FCC has released a set of guidelines to help educate consumers on early termination fees.

The FCC hopes that this set of guidelines will ensure that consumers make informed decisions and avoid any extra charges when purchasing a contract mobile phone.

Here are the Federal Communications Commission guidelines on early termination fees:

• When signing up for a new cell-phone service, make sure you are fully aware of any “early termination fees” (ETFs) that may be associated with the contract you are signing. The salesperson may not mention an ETF, so be sure to ask.
• Ask how much the early termination fee will be and how it is prorated. Prorating means that the amount of the ETF you are responsible for decreases month by month. But different carriers prorate different plans in different ways. For example, one $240 ETF might decrease by a steady $10 a month over two years, while another high ETF might drop by only $5 a month until the last four months.
• Ask if it would be possible to buy a handset at full price and avoid an ETF.
• Think before you make any changes in your contract, such as buying a new phone or more minutes that your carrier might offer. This could trigger a new two-year contract with another ETF.
• Ask about the trial period during which you can cancel the service without an ETF penalty. This is typically 14 to 30 days. Also ask whether you will get your first bill before the trial period is up – and if not, whether you can find out about your costs during the trial period in another way.
• If you use your phone sparingly, consider avoiding the whole ETF issue by buying a pre-paid phone. These phones do not involve a contract.

That's it. Hopefully, these guidelines will lessen the number of mobile phone contract disputes. However, I'd prefer to have the FCC impose stricter policies tha would prevent carriers from implementing fees that are unfair towards consumers.

AT&T to Increase ETF for Smartphone Wireless Contracts

AT&T has become the second major US carrier to increase its ETF in the last several months. Verizon decided to increase its charge for early contract termination for mobile phone contracts last November. Now, AT&T is set to ramp up its early termination fee next month.

The folks at WSJ blew the whistle in this upcoming change in AT&T wireless contract policy. The carrier plans to almost double the fee for terminating a contract for its smartphones and laptops. New contracts signed for smartphones and laptops next month will carry a hefty $325 which will fall by $10 for each month a customer stays in his/her contract. The previous fee was set at $175.

On the other hand, AT&T decreased the fee for its feature phones. Perhaps increasing the fee for these devices will be too much.

The early termination fee for AT&T feature cell phones will be $150 and will fall by $4 for each month a customer stays in his/her contract. The previous fee was also set at $175.

This decision is sure to catch the ire of the FCC. The commission recently questioned carriers about their practices and stated that competition has "dramatically eroded and is seriously endangered by continuing consolidation and concentration in our wireless markets."

Well, see how the market reacts to this new development. Tune in to this blog for more news and updates on US wireless contracts for mobile phones and other devices.

ETFs Effective in Preventing Consumers from Switching Carriers

If you've followed this blog, then you'll be familiar with ETF or early termination fees. This penalty is charged to consumers who want to opt out of a wireless contract before its expires.

I recently read a stud showing that a significant number of consumers who are dissatisfied with their carriers chose not to switch to another service provider to avoid paying the heavy early termination fee.

The Government Accountability Office (GAO) recently made a study on cell phone complaints and the ways that the Federal Communications Commission (FCC) deals with those complaints. One of the interesting findings of this GAO study show that 42 percent of consumers who wanted to switch carriers decided not to because they did not want to pay an early termination fee.

The research also show that ETF or early termination fees is one of the one key reasons for consumer dissatisfaction.

This illustrates the restrictive aspects of charging these fees. A representative said that, consumers should not be chained to their wireless provider for years through exorbitant early termination fees.

And I agree with him. Thankfully, congress has responded with legislation like the "Cell Phone Early Termination Fees (EFT) bill" to protect consumers from the unfriendly fees from wireless contracts.

That's it for this post on the crippling effects of wireless contracts. Stay tuned for more on this and other related topics.

Sprint's New Customer 30-Day Trial Wireless Contract Policy

Here's a note worthy change instituted by Sprint. The carrier has announced a new wireless contract policy on its 30-day trial period for new customers.

New Sprint customers will benefit from the carrier's new "Satisfaction Guaranteed or Money-Back" wireless contract policy. What does this new policy entail? Well, new customers who wish to cancel will have all fees returned to them as long as they are in the first 30 days of the wireless contract.

Yes, tha's right. new consumers who wish to cancel before the end of the 30-day trial period will get their money back from device and activation fees, the early termination fee, a full refund for service plan monthly daily charges, all associated taxes, and all Sprint surcharges associated with these charges.

This new "Satisfaction Guaranteed or Money-Back" policy is more consumer-friendly than the previous one which enforces fees on customers canceling in the first 30 days.

Consumer Lifestyle Advisor Jennifer Jolly comments on the "Satisfaction Guaranteed or Money-Back" from Sprint,

"This is a big win for cost conscious consumer . We want this kind of honesty and transparency. We want to know there's no more sticker-shock or bait and switch, that when a company promises us something, their word is good. Can you imagine if we could test drive a bank, health insurance, a credit-card, or any of the other things we spend our hard-earned money on every month - free for 30-days? This is a big step in the right direction for Corporate America and we savvy shoppers are the ones who will benefit the most."

That's it for this post. Tune in next time for more wireless contract news and updates.

Wireless Contract Termination Awareness

I've been surfing websites on wireless contract disputes recently and I have noticed a disturbing trend. Some of the consumers hit with ETF's were not aware that their phone was still under contract.

These cases usually occur when consumers move or transfer to an area that is not covered by their existing provider. They thought that their handsets were no longer under contract since their present location is not being served by their service provider. Unfortunately, they letter from a collection agency stating that need to pay a certain amount to cover the early termination fee that the incurred.

Here's a story of a customer who suffered this fate. This article was published at lawyersandsettlements.com Here's a brief teaser:

Shirley W. was aware that her phones were under contract but was told her early termination fee could be waived. It was almost a year before she learned that her fees were not waived and her account was sent to collections.

Fortunately, lawmakers are aware of this problem. The Cell Phone Early Termination Fees (EFT) bill introduced by Sen. Klobuchar includes a provision that forces carriers to notify customers in a clear way about ETF. Wireless service providers will be required to spell out the EFT instructions at time of purchase and at various times during the duration of contracts. This way a customer will be aware that he or she is in danger of incurring the fee and be given a chance to deal with the situation.

That's it for this post. I hope that you'll stay aware of the contractual status of your handsets and won't be hit by a nasty early termination fee.

New Wireless Contract Disputes And Complaints

It's been awhile sice we posted conflicts between consumers an carrier's on this site. Let's revisit the halls of Consumer Affairs.com and look at recent contract disputes.

Here are a trio r recent contract related complaints.

Tobin of Coralville, IA August 5, 2009

I have attempted to get some satisfaction on 4 different occasions, twice by calling their help line and twice in person at the store. I am paying full price for cell phone service that does not work at my home; so, my friends/family/work have to try both my cell and work numbers (if they think of calling both) to reach me. The first time they sold me a new phone, the second time told me something to try that didn't work, and tonight they told me I'd have to pay 155 early termination fee because their service is so bad I have to get another carrier.

Todd of Torrance, CA June 30, 2009

I was signed up for and paying for their 900 minute/month plan. This plan includes a free phone upgrade every year. As usual with Verizon phones, mine started having problems after a year. I was shopping online for a replacement when I started having some questions about the cost of plans for their smart phones. I called customer service because the answers were not on the website.

The customer service representative answered my questions. As I was about to hang up, she asked to review my usage. I let her and she talked me into agreeing to lower my plan to the 450 minute per month plan because my usage was low. What she decided not to tell me at all was that this would cancel my eligibility for a new phone now. I agreed because of the sales pitch that she gave me on how I'm not using enough minutes. Once I hung up the phone, I went back online and the prices of the phones had gone from free to over 400 in some cases. When I called back, I was told that what I was seeing online didn't exist and to call back. After much back and forth via email, Verizon has told me that I am stuck with a phone that does not work until December 2 or I can pay them 80 to be released from my contract early.

There are a few ways of making effective complaints with regards to wireless contracts disputes. One would be to publish them online (see above) and allow other consumers as well as service providers to know about your problems.

One can also complain to the FCC. Click here for the online complaint form. This agency has power to deal with carriers so it would be an effective vehicle for your complaints on wireless contracts.

You should also bring the matter to your state utility board or public service commission. This agency deals with disputes including conflicts on wireless contracts. Click here for a state-by-state list.

That's it for this post. Tune in for more wireless contract disputes and complaints on this blog.

Verizon, AT&T, Sprint, T-Mobile and Google Defend ETFs

Several weeks ago, the FCC sent out letters of inquiry to major wireless carriers and Google to ask for explanations regarding the controversial early termination fee or ETF charged on wireless contract terminations.

Well, all four major U.S network operators (AT&T, Sprint, T-Mobile and Verizon Wireless) together with Google has responded to the FCC's wireless contract inquiry. Here are the highlights of the companies' defense of the ETF:

• customers are well-informed about ETFs before committing to wireless contracts
• consumers are aware that they have plenty of choice, given the wide range of pre-paid providers also serving the market
• customers have a minimum of 14 days to test products at the onset of their contracts before the ETF becomes mandatory.
• the mobile phone industry is highly competitive, and ETFs are needed to recoup fees that go towards customer acquisition and equipment subsidies.
• Verizon plans to clearly put ETFs on device cost labels, and emphasized that reduction of number of handsets on its "advanced devices" list, which require a $350 fee (compared to the standard fee of $175)
• Google defended the equipment recovery fee it is charging Nexus One customers who break their T-Mobile contracts because it says T-Mobile pays it a commission for each customer T-Mobile acquires through Google. Google passes that commission on to the customer in the form of a device subsidy.

Well, it's the FCC's turn to respond to the united defense put up by Google and the major US carriers. Let's see if the commission stands firm in its policy of defending the welfare of US consumers.

That's it for this post. Tune in to this blog for more update on this wireless contract issue.

Articles on Terminating a Wireless Contract

Things seem to be quiet on the mobile phone contract font this week. It appears that there are no recent developments on carrier's wireless contracts or cell phone agreement settlements. However, I did come across plenty of articles on how to break free from a contract without paying a large sum.

These informative articles come from fairly reputable sites. They offer options for consumers who want to get rid of a contract but don't want to pay the heavy early termination fee.

Here is a compilation of articles on how to terminate a contract without paying the ETF:

• Looking To Ditch Your Cell Phone? - WNBC.com
• Breaking Free of a Cellular Contract - Wall Street Journal
• Swapping Your Cell - MSNBC
• Dump Your Cell Phone Company - Pcworld.com
• One-Up Your Cell Carrier - Wired Magazine
• Get out of your cell phone contract for $20 - abc-7.com
• Get out of your cellphone contract by "sub-leasing" engadget.com
• Ditch your Cell Phone - Money.cnn.com
• Ditching Your Cell Contract - Smartmoney.com
• A BETTER WAY TO ESCAPE CELL PHONE JAIL - redtape.msnbc.com
• Keep More Cash - Reader's Digest

I hope this collection of articles will help you figure out a way to escape a contract without paying a huge fee.

That's if for this week's post. Tune in to this blog for more news, updates and information on various wireless contract topics.

Google Cuts Nexus One ETF!

It appears that the FCC has convinced Google to take a softer stance on the the equipment recovery fee it imposed on the Nexus One.

The FCC has recently expanded its crackdown on excessive and unfair early termination fees or ETF's that was previously focused on Verizon. Google draw the attention of the FCC when it decided to impose a high ETF on the new HTC Nexus One.

The fee has been cut down to $150, down by $200 from the original fee. The original equipment recovery fee for the Nexus One was set at $350.

The company explained its decision to cut the ETF with this statement:

"Google's overall financial philosophy with regard to operator service plans remains unchanged: We make no profit from commissions from operators or from equipment recovery fees, and our recovery fees are based on operator charges to Google for early termination of service,"

However, some consumers still feel that the fee is unnecessary since carriers already charge a termination fee with its service contracts on the Nexus One.

Verizon Wireless also eased back on the devices included in its raised ETF device list.

That's it for this wireless contract post. Tune in to this blog for more news and updates related mobile phone contracts.

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.

AT&T Settles Wireless Contract Dispute for $18 Million

Here's a good case where a wireless contract dispute worked in favor of the consumers. About a week ago, AT&T has decided to settle an ETF class action suit to the tune of $18 million! This settlement applies AT&T subscribers that paid a flat-rate ETF between January 1, 1998 and November 4, 2009.

These settlement appear to be a loss for AT&T but a closer look shows that paying a substantial amount to a class of complainants is actually cheaper for AT&T. Since thousands of folks are qualified for the settlement, individual settlements to be relatively minor. Of course, the lawyers will take the lion share of this wireless contract dispute settlement.

Anyway, Here is AT&T's statement on the settlement of the mobile phone contract dispute:

We strongly deny any wrongdoing, and no court has found AT&T Mobility committed any wrongdoing regarding these fees. However, we have agreed to settle to avoid the burden and cost of further litigation.

It's important to note that the litigation involves old early termination fee policies of the old AT&T Wireless and Cingular. In 2008 we introduced a new, more flexible early termination fee policy, in which we pro-rate the ETF if you are a new or renewing wireless customer who enters a one- or two-year service agreement.

That's it for this ETF class action suit settlement. Consumers that paid an AT&T flat-rate ETF between January 1, 1998 and November 4, 2009 should take advantage of this small victory. Click here for the claim form. Tune in for more wireless contract news and updates.

Verizon Removes 10 Phones from $350 ETF Advanced Devices List

It appears that Verizon Wireless has felt the pressure from consumers, the FCC and other government officials. The carrier has covertly removed ten mobile phones from the list of phones that require its new $350 early termination fee.

The carrier has recently imposed a bold wireless contract policy that required a $350 ETF (early termination fee) for a select group of smartphones and “advanced devices.” Naturally, this action was met by stiff resistance from consumer groups, the FCC and a few senators headed by Amy Klobuchar.

I posted the complete list of "advanced" or multimedia phones several weeks ago. Well, that list has to be updated now that Verizon has chopped off ten devices. The devices taken off the list include the Motorola Krave, Samsung Rogue and five LG devices.

But why did Verizon remove ten devices from its $350 ETF advanced devices list? Well, a Verizon spokesman was unable to answer queries about the change. Some experts say that pressure from the FCC, who criticized Verizon's $350 ETF explanation and from other groups has moved the carrier into removing the devices from the list.

That's it fro this post on Verizon's controversial wireless contract policy. Tune in to this blog form more news and updates on wireless contracts and related topics.

iPhone Reponsible for Two-Year Wireless Contract Surge?

It appears that the number of consumers that are signing two-year mobile phone contracts are on the rise. A study conducted by the folks at Ofcom.org indicated that more than two in five mobile phone users have signed up to a two-year wireless contract. This number has reportedly increased significantly in the last few months due to the popularity of the Apple iPhone.

The iPhone 3GS has recently become widely available to mobile phone consumers throughout the globe. Apple's hit mobile phone was released in the U.S., Canada and six European countries on June 19, 2009, in Australia and Japan on June 26, and in other international markets in July and August, 2009.

The subsidized price that come with a two-year cell phone contract has made the iPhone more accessible to consumers. Customers also recognize that they can reduce their monthly bills since phone companies reserve the best rates for customers willing be tied in for a long time.

However, signing a two-year agreement also comes with some disadvantages.

For instance, the contract may restrict a consumer's choice for two years. This means that a user may not be able to keep track of the latest technologies to hit the market while being committed to a two-year agreement.

There are also some stiff penalties for consumers who decide to terminate an agreement. Verizon Wireless has recently taken heat for imposing a $350 early termination fee or ETF on its advanced devices.

Consumers should weigh the advantages and disadvantages of signing- a long term contract before they sign on the dotted line.

That's it for this post. Tune in to this blog for more news and updates on the wireless contracts industry.

FCC Demands Improved Increased ETF Explanation from Verizon

In my last post for this wireless contract blog, I posted about FCC member, Mignon Clyburn's comments on Verizon Wireless explanation for raising the ETF on advanced devices.

Clyburn expressed that Verizon's 77 page statement in defense of its new wireless contract policy is "unsatisfying" and "troubling." This time Federal Communications Commissioner Julius Genachowski has spoken out against the carrier's ETF increase explanation.

The commissioner was clearly unsatisfied with the carrier's explanation. Genachowski said, "I thought that response raised more questions than it answered. The bureau is looking into that... There's a very real level of consumer confusion around these areas"

However, Genachowski declined to say what the FCC's next move to mend this problem.

I guess we'll have to wait and see if the government exerts pressure to turn back the Verizon's ETF from $350 to $175.

Tune in to this wireless contract blog to keep tracks of developments in this story.

FCC on Verizon ETF Explanation: "Unsatisfying" and "Troubling"

A few weeks ago, Verizon Wireless released a 77 page statement in defense of its decision to increase the early termination fee or ETF for its "advanced devices" at the request of the FCC. This time, the commission has released its response to the carrier's defense of its increased ETF.

Well,. it appears that the 77 page statement did not impress the FCC. Mignon Clyburn, a Federal Communications Commission of the, described Verizon's official response to the FCC's query as "unsatisfying" and "troubling."

Here's more from Clyburn:

"Consumers already pay high monthly fees for voice and data designed to cover the costs of doing business. It is hard for me to believe that the public interest is being well served."

Those are some pretty scalding words for the Verizon Wireless. Let's see if they respond to these comments.

The FCC plans to investigate the matter further when it reconvenes in 2010 so tune in to this mobile phone contract blog to get the updates to this wireless contract news.