updated 03:45 pm EDT, Mon June 23, 2008
T-Mobile Prorating ETFs
T-Mobile on Monday revealed the full details of its prorated early termination fees (ETFs) for its cellphone service that give customers a break on their decisions to opt out in mid-contract. While the normal $200 feel still applies to subscribers exiting within the first 18 months of the plan, the carrier halves the fee to $100 for those with between three and six months left in their service. Those with three months or left pay $50; for those with less than one month left, the rate can drop below $50 if the customer's monthly rate is less.
This latest move to prorate fees is more expensive than similar efforts from AT&T for most of the contract but is potentially less expensive towards the end of service. Most carriers with prorated ETFs typically discount service by each month.
Moves to discount the cancelation fees are believed to be a response to Congressional pressure that would regulate prorated fees and ease the costs of cutting a contract short.