October 23, 2008 5:42 PM PDT

Sprint to start prorating early termination fees

by Kent German
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Sprint will change course and start prorating early termination fees, the company's CEO said Tuesday. In an interview with the Associated Press, CEO Dan Hesse said the carrier could initiate the practice as early as December, after updating its billing software.

Sprint has been the lone holdout of the major carriers in trimming ETFs as customers near the end of their two-year contract. T-Mobile started prorating fees in June following the lead of Verizon Wireless and AT&T.

Though ETFs have long been the been the bane of consumers, carriers maintain that they are a way for them to recoup costs for offering free or heavily discounted new phones to customers. The Cellular Telecommunications Industry Association, which represents carriers in Washington, supports ETFs for the same reason.

Currently, ETFs are not regulated by the the federal government, but the Federal Communications Commission is considering taking some oversight. During a hearing with the FCC in June, carrier representatives said they would be willing to accept some limitations on ETFs as long as the carriers could be absolved from class action lawsuits over the fees.

Kent German is a senior editor for cell phone reviews at CNET. When he's not testing the newest handsets on the market, he's blogging about cell phone news for Crave. In his On Call column, he answers reader questions and gives his take on the rapidly changing mobile industry. E-mail Kent.
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by thurston24 October 23, 2008 6:29 PM PDT
Sprint still sucks
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by October 23, 2008 9:38 PM PDT
Sprint is the worst cell phone company by far. I recently paid $200 early termination fee for a $9.99 per month line that had only a few days remaining on the contract. By quitting 'early' they would have lost out on about one dollar. (My daughter lost her phone, and in an 'emergency' (she's 18, and life is an emergency) she had to get a new phone with a different carrier, but keep her number...hence, the Sprint account was cancelled)

Recouping losses has nothing to do with Sprint's policy. The policy is just there to lock customers in to their service.

What Sprint does not factor into their business plan, is that their policies have made a lot of customers very upset. That means these customers will tell everyone else the truth about Sprint as a company.
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by dishsoap1 October 31, 2008 7:52 AM PDT
If it was only a few days from expiring, you should of waited. Your daughter could of waited a few days without a phone. I don't feel sorry for you on this one.
by askmrlee November 5, 2008 11:09 AM PST
While I understand your frustration, from the situation you described, any of the major cell phone carriers would have charged the ETF, not just Sprint.

It sounds like she lost the phone and then wanted a phone that Sprint didn't carry. An iPhone emergency maybe? You could have bought a new Sprint phone at the new customer price (since she was at a few days before the contract expiration, she should quality for a new phone at the new customer price with a renewed contract). As a renewed customer you should have 14 to 30 days to return the phone and cancel the new contract without penalty. In this period, you can get a new phone with the new carrier and transfer the number. If she's 18, she is an adult and could also just pay this ETF herself to leave the family's shared plan and get her own service.
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by xplizit5abi March 25, 2009 6:23 PM PDT
To Askmrlee, you do not make any sense.
I have dealed with you a lot of companies including t-mobile, sprint, and cingular.
All of the other companies have been very respectful to me.
They also cancelled my plans early for a few without charges, because i had to go out of country.
I call sprint, and they want plane tickets and so many things in order to waive the fee.
Sprint is a total rip off, they over charge, and do not live up to their expectations.

They are very rude on the phones, and do not take of business properly. and do not know what they are talking about. And to Askmree, can you check your information and then speak, because your talking very stupidly in your comments. Thanks.

-G
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