Sprint May be Forced to Lower Termination Fees

By: AP
By: AP

KANSAS CITY, Mo. - Sprint Nextel Corp. will soon begin trimming the costs customers face for canceling their cell phone service early.
Chief Executive Officer Dan Hesse said Tuesday that Sprint could
start lowering the early termination fees as soon as December. The
$200 or more fee is charged for wireless subscribers who end their
service before their two-year contract ends.
The new policy would reduce the fee slightly each month the
subscriber stayed with the plan, resulting in a lower termination
fee the later a subscriber chose to cancel.
Wireless competitors AT&T, Verizon Wireless and T-Mobile already
prorate their fees.
A California judge this summer said such fees likely violate state law and ordered Sprint to reimburse customers more than $73 million.


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