Special offer

Lil' Buddy's Blog - Those Blasted Cell Phone Company Early-Termination Fees? Now, FCC is Questioning Them!

By
Real Estate Agent with Dean's Team - Keller Williams Realty Partners Chicago IL

THE CHICAGO IL REAL ESTATE MARKET, AND OTHER THINGS CHICAGO, FROM THE POINT OF VIEW OF A LITTLE WHITE DOG!

Buddy Waits by his Cell Phone - November, 2007Hey, you dogs!  You know, I'm getting a bit tired of all the Text Messages my Lil' Sister, Gracie Ella Moss, has been getting recently!  Every time she finds a new boyfriend, there is a constant din of "Luv U Lil' Furball" and "Got Bonz?" over my cell phone.

Geez . . . can't she get her own plan, for crying out loud?

You know, for years, the majority of us dogs, and most humans as well, have become very irritated at those "Early Termination Charges" imposed by the big Cell Phone Carriers.  AT & T, Sprint, T-Mobile, and Verizon Wireless have had them for years.  So has Chicago Regional Carrier U.S. Cellular.

Now, even search engine giant Google is getting on the Early Termination bandwagon.  Buy one of their new, nifty Nexus One phones, with the super-cool Android Operating Platform, but cancel early?  You'll be hit with a $200 Early Termination Fee from carrier T-Mobile, plus an additional $350 fee from Google itself

Woof . . . that's up to $550 in Cancellation Charges if you don't keep your plan for at least two years!

Within the last couple of years, the big carriers have eased off a bit - most have discounted the Termination Penalty a bit, on a pro-rata basis, if you cancel with only a year or less left on your contract.  Often times, however, if you are just dissatisfied with your carrier's service, or want to take advantage of a slick new phone or discounted price deal offered on another Cell Phone Network, you simply have to wait it out . .  or, pay a stiff penalty!

But now, according to Reporter David Sarno in The Chicago Tribune earlier this week,  the practice of charging stiffly for Early Termination has drawn the ire of the Federal Communications Commission.  They have sent letters to each of the major contract carriers questioning the process, and whether it is truly fair to the U.S. Consumer.  The firms' answers will be treated confidentially.

Cell phone carriers contend the Early Termination Charges, along with Long Term Cell Phone Contracts, allow the companies to discount the cell phone handset itself, resulting in wider acceptance and use of the phones.  They contend lower handset pricing ensures consumers can purchase the latest and best phone hardware and technology, without a stiff handset price.

The practice is far different in most countries in Europe and Asia, where consumers pay full retail for the handsets, and later acquire a SIM Card so they can easily swap among carriers.

As the Only IL Dog with a Real Estate Broker's License, I have become quite a heavy cell phone addict.  I would do more texting as well, but for me it is often to hit those tiny keys with my little paws!

But, in my lil' opinion, a balance has to be struck, one which is more fair, to we dogs in the profession, as well as our associated keyboard-punching humans!

You think?

Enjoy the weekend, you dogs!

See my post today via BlogChicagoHomes.com.

YOUR ACE REPORTER ON FOUR PAWS,

BUDDY HOLLY MOSS & DEAN'S TEAM CHICAGO

Comments (2)

Mike Carlier
Lakeville, MN
More opinions than you want to hear about.

Hey Buddy, I hope the FTC doesn't crack down on early home listing termination fees.  That would make the contract almost worthless, wouldn't it?  Actually, my listing and buyer contracts don't even have an early termination option.  By the way, congratulations to you and all Illiniosans on your first anniversary of having a Governor who has not yet gotten into trouble! 

Jan 30, 2010 02:42 AM
Dean Moss
Dean's Team - Keller Williams Realty Partners Chicago IL - Chicago, IL
Dean's Team Chicago IL Real Estate Team

Mike -

You know, if the major carriers did away with Early Termination Fees, and instead charged Full Retail Price for the handsets . . . eveh more humans would bitch!

Oops, sorry!  I'm a Lil' White Dog - have to watch my lil' mouth!

Thanks for the comment!

BUDDY HOLLY MOSS & DEAN'S TEAM CHICAGO

Jan 31, 2010 05:39 AM