Terminating Early Termination Fees (Gainesville, Lake City: how much, promotional, purchase)

[Pcola110]

With all the telecommunications carriers (Sprint/Nextel, AT&T, Verizon,etc) charging you an early termination fee to get out of your current contract (cell phone plan) with the carrier whether you're satisfied with the their service or not. Well a California judge was judged that early termination fees are illegal. California judge rules early cell phone termination fees illegal : Christopher Null : Yahoo! Tech What is everybody else's take on early termination fees and other junk fees that the FCC allows carriers to charge us?

[OhioNative]

Originally Posted by Pcola110

With all the telecommunications carriers (Sprint/Nextel, AT&T, Verizon,etc) charging you an early termination fee to get out of your current contract (cell phone plan) with the carrier whether you're satisfied with the their service or not. Well a California judge was judged that early termination fees are illegal. California judge rules early cell phone termination fees illegal : Christopher Null : Yahoo! Tech What is everybody else's take on early termination fees and other junk fees that the FCC allows carriers to charge us?

Now we will be paying more for the phones themselves. The companies used the guarantee of a long term contract to justify subsidizing free or low cost phones, a practice which is now likely to end if this holds up.

[Pcola110]

I have no problem paying more for a good quality phone (i.e. Palm Treo). It's the phone's features that dictate which plan you purchase and how much you're going to use it, that you pay to the carriers. Customers shouldn't be shackled too specific carrier to get a discount on a phone for 24 month contract. Because if the customer for the most part is happy with particular carrier's consumer service and likes the products they offer, more than likely that customer is going to stick with their current carrier for years. I've purchase cell phones in prices that rival the early termination fee.

[neil0311]

With AT&T, you always have 30 days to return hardware or cancel service if you're not satisfied. Isn't that sufficient?

The problem as OhioNative correctly stated is that much of the cost of the phone and other promotions is embedded in the monthly cost of service and amortized out over those 12 or 24 months. With portability being an easy thing these days, the risk for the carrier is that people will take advantage of promotions and then switch, which makes the business less profitable (or not profitable).

Normally, you have a choice to pay more and not get stuck in a contract, including paying the termination fee. Was there a trial period?

[DBeachBoy]

The thing that bothers me (at least with Verizon) is that if I make any kind of changes to my account, remove or add services, anything, my 2-year contract gets reset to when I made that change.

For example they have a 'new every two' plan where you get an allowance for a new phone every two year, this usually coincides with your contract. Well my new every two was up in March, but two years ago I had to replace my phone in July, So now My 2-year contract wasn't over until this past month. That's what gets me, 2-years should be 2-years

[Pcola110]

With unlocked phones competition and newly release phones will determine the pricing of phones, as evident in Japan. Yeah I have returned phones (which wasn't satisfied with) in 30 day return period and pay the restocking fee. I don't bother getting the free or $99.00 phones (older models). Customers problems usually arise after the 30 day return period with carrier's customer service or phone malfunctioning. Customers move around country, a specific carrier might not offer cellular services in the new region that customer is moving too. I have had Cellular South out in Coronado, CA too find out I didn't get a signal specifically in Gainesville, FL when I went to visit family there, but recieve a signal everywhere in between CA and Northern Florida (Lake City). I have paid full price for the phones & still been subject to early termination fee. What I find disturbing about the early termination fee is those customers that have been with a specific carrier for numbers of years, who are upgrading their phones to newer models or different phone offered by the same carrier, are resign to a new contract with another early termination fee. Or you have to pay an early termination fee to change your phone number to new area code.

[bdeitrick]

Originally Posted by DBeachBoy

The thing that bothers me (at least with Verizon) is that if I make any kind of changes to my account, remove or add services, anything, my 2-year contract gets reset to when I made that change.

I complete agree with you. However, I wonder if they've stopped doing that recently, since I changed some features about a month ago, and was pleasantly surprised that my contract wasn't extended. I could have just gotten lucky too.

[Pcola110]

Originally Posted by DBeachBoy

The thing that bothers me (at least with Verizon) is that if I make any kind of changes to my account, remove or add services, anything, my 2-year contract gets reset to when I made that change.

For example they have a 'new every two' plan where you get an allowance for a new phone every two year, this usually coincides with your contract. Well my new every two was up in March, but two years ago I had to replace my phone in July, So now My 2-year contract wasn't over until this past month. That's what gets me, 2-years should be 2-years

That I agree with you on, if I make changes to my calling plan that I choosen, it shouldn't have an affect on 2 year contract by extending it too a new expiration date.

[Go Blue 99]

Originally Posted by bdeitrick

I complete agree with you. However, I wonder if they've stopped doing that recently, since I changed some features about a month ago, and was pleasantly surprised that my contract wasn't extended. I could have just gotten lucky too.

As of October 2007, Verizon does NOT extend your contract if you change plans or change services mid-contract. They only extend your contract if you partake in promotional pricing for a new phone.

[eloquent_alligator]

The only gripe I have with ETFs is when they remain static over the term of the contract. If the whole point of the ETF is to guarantee revenue for subsidizing my phone, then it should be reduced on a monthly basis throughout the two year period. AT&T and Verizon have adopted this approach, taking away $5 each month of your contract term. Other carriers have taken a slightly different approach, but the end result amounts to a reduced ETF.