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Early termination fees for wireless cell phone contracts came under fire during a Federal Communications Commission hearing Thursday as commissioners examined an industry-backed proposal that could soften the blow of these fees for some consumers.

The FCC held the hearing to gather more information as it considers a proposal that would give new cell phone customers a 30-day grace period to cancel their contracts without penalty. After those 30 days, early termination charges would then be prorated or reduced over the duration of the contract.

In exchange for accepting this proposal, wireless operators have asked to be absolved from ongoing lawsuits … Read more

The Federal Communications Commission will discuss a proposal at an open meeting Thursday that could reduce the cost of getting out of your cell phone contract.

The industry-sponsored proposal would give new cell phone customers a 30-day grace period to cancel their contracts without penalty. After those 30 days, early termination charges would then be pro-rated over the life of the contract. This means customers who want out of their contract in month 20 would pay less than those cancelling their service after only four months.

Cell phone operators have argued that they must impose early termination penalties on contracts … Read more

The Federal Communications Commission has scheduled a June 12 hearing to debate whether the agency should regulate early termination fees (ETFs) on cell phone contracts. According to The Washington Post, FCC Chairman Kevin Martin hopes to address growing consumer complaints over ETFs, which have become the subject of class action lawsuits in several states.

The FCC already is negotiating with several carriers on how it would assume federal oversight over EFTs, which currently are subject to state laws. The proposals include capping the fees at an undisclosed amount, requiring carriers to prorate ETFs, and prohibiting the providers from charging an … Read more

If you hate paying a fee to end your cell phone contract yearly (and really, who doesn't?), you'll be interested to know that the Federal Communications Commission may just have your back. The Associated Press is reporting today that the FCC is considering proposals to regulate, but not eliminate, the early-termination fees (ETFs) that have become a sore spot for cell phone owners. Currently, wireless carriers charge up to $200 for customers who leave service contracts before their end date.

The FCC is not commenting on the proposal, but according to the AP, the agency is negotiating with … Read more

Verizon Wireless came to its senses last year, AT&T did so just last month, and now T-Mobile and Sprint have grown a little nicer, as well. Both carriers announced this week that they would begin prorating their early-termination fees (ETF) in the first half of next year. You'll still have a to pay a fee for ending your contract early, but the amount will decrease the closer you get to your contract end date. Specific details of the new policies weren't released--those will come next year, as well--but the dual announcements mean that all four major … Read more

AT&T wants to be more consumer-friendly.

On Tuesday the company said that it will prorate the $175 early termination fee it charges wireless customers who cancel their contracts based upon how much time they have left in their contract. This means that someone who cancels their service 23 months into a two-year contract will pay considerably less than someone who cancels the service after only six months. (All new customers are able to cancel their service with no penalty for up to 30 days after service begins.)

The company also said it will no longer require customers to … Read more

Congressional momentum appears to be building in support of overturning a contentious ruling that Webcasters argue could cripple their services.

On Thursday, U.S. Sens. Ron Wyden (D-Ore.) and Sam Brownback (R-Kansas) introduced a bill that would repeal a U.S. Copyright Royalty Board decision scheduled to take effect July 15. The rules would raise the rate per song and per listener retroactively to 2006, and then in each year until 2010. It would also require each Internet radio "channel" to make a $500 minimum payment.

Opponents of the new rules, which include large and small commercial Internet … Read more

The U.S. Copyright Royalty Board has pushed back the date on which a contentious fee hike for Internet radio broadcasters takes effect.

In a 32-page final rule (PDF) formally published Monday, the three-judge panel within the Library of Congress set July 15 as the date that the new royalty rates required of Net radio operators will kick in--two months later than the original deadline.

After more than a year of vetting outside submissions, the judges issued an initial ruling on March 2, drawing widespread outcry from large and small commercial Webcasters and the public radio community.

The board prescribed … Read more