Many Cell Phone Termination Fee Developments

It has been awhile since I posted. Without a doubt one of the biggest stories in the Wireless Phone industry has been the way providers have started to treat early termination fees and a legal ruling about cell phone contracts.

First, in May AT&T began prorating early termination fees. As before, early termination fees start at $175 at the beginning of the contract, but 5 dollars is subtracted after each month in service. I think this makes a lot of sense.

Not to be outdone ( hey, when one provider does something the rest soon follow. See: unlimited wireless calling plans, for example), T-Mobile started prorating fees. They have a little different method. T-Mobile is dropping its $200 termination fee down to $100 during the last 6 months and finally to 50 bucks during the last 3 months.

Of course, the judiciary couldn't leave well enough alone. While some major corporations are certainly slow moving, the market tends to adjust well without too much outside interference. For example, once ATT decided to prorate fees, the others had to play catch up. These companies are in competition for customers and will end up eating each other for breakfast, spitting it out, and even risk cannibalizing their own business. However, just in case you need a judge to help you out with your cancellation fees- A California judge ruled that early termination fees violate state law. Now, don't get too excited. This is STATE law in California after all. However, this will probably have wide reaching results, if not legally than at least consensually.