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March 7, 2007
Dear CNET members, Cellular carriers' early-termination fees (ETF) are nothing new. And it's simple--you sign for new cell service, get a brand-spanking-new phone for free or at a deep discount, and agree to a one- or two-year contract. You break the contract before the contract date is up, you pay a hefty early-termination fee. Most of us know that the purpose of the cellular carriers' ETFs--and they are no different than signing up for satellite TV service, adding a home alarm, or even TiVo--is to ensure that the company stays profitable and recovers its equipment cost in case you break the contract. While I completely understand this and agree with it, the real question at hand is: Are these ETFs fair? For example, with some cellular carriers, if you change your rate plan or modify something as simple as adding a new feature to your service plan, you automatically are forced to sign a new one- or two-year contract. Not fair at all, especially if you are close to the end of your contract. What if you move to a location with spotty coverage--should you still be obligated to that ETF if the company isn't providing the expected service? What if we owned our own phones and signed up for service--since the company is not incurring any equipment cost, should the ETF not apply here? What do you think? In the latest On Call column, CNET editor Kent German takes on early-termination fees and gives us a laundry list of suggestions on how carriers and consumers can come to a middle ground on these ETFs. So read up, and when you're ready to give us the lowdown on what you think of ETFs in general or have some ideas on a way we can improve ETFs (which can benefit not only the carrier but the consumer as well) talk back right here.
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This week's hot topic:
Cellular companies' early-termination fees Not many things annoy cell phone customers more than the expensive termination fees for ending a service contract early. Customers may hate them, but carriers love them. Can there be any middle ground? After reading the latest On Call column on early-termination fees, we asked our members what they thought of early-termination fees. Many of them came running to tell us what they thought. "Great idea, but UNREALISTIC!" "Let's face it, people are cheap. Our society is cheap. Rarely does anyone pay a little extra for QUALITY. It's always about quantity. I work for a carrier, and 9 out of 10 people are always asking for FREE Phones. We give them the one year option, but they want whatever..." (Read more)
--Submitted by: CNET member caliboyatcu
"ETF's are just a scam, another way to rip people off." "This ETF thing is way out of control, as are contracts in general. I can see a contract if the carrier gives you something of substantial value on which they must recoupe their cost. However, many carriers renew your contract for another one to two years if you simply..." (Read more)
--Submitted by: CNET member SteveLaCroix
"Don't go for a contract, go for"Pay asyou go"!" "Avoid locking yourself into a two year contract with ETF hovering over your head until one minute before the contract ends. Instead, buy your own phone and opt for the prepaid route--refill your minutes as you go. You can calculate the break point and find that..." (Read more)
--Submitted by: CNET member urr_quasdim
Speak Up!Now it's time to hear your opinion on cellular companies early-termination fees. Do you think these fees are fair? Or do you think they are just a way for these companies to keep you locked in to their services with no flexibility at all? Voice your opinions, but please give us the reasons behind your thoughts. We're all ears! • Editors' top cell phones From CNET Reviews • Compare cell phone carriers From CNET Reviews • Cell phone buying guide From CNET Reviews • Cell phone radiation charts From CNET Reviews • Cell phone tips and tricks From CNET Tips & Tricks • Cell phones forum From CNET forums  Here are some interesting comments you've recently submitted
on CNET. Read up on it and talk about it.
• Hacking with smart phones As smart phones bundle more communications options, such as 802.11, the more appealing these devices become to ordinary hackers. Do you think that using a mobile device instead of a laptop will create more opportunities for attackers to steal sensitive data? • Are camera phones useful or just toys? Whether you like it or not, more and more phones today are featuring cameras built right into them. So the question is, will you use it or would you consider this feature more of a toy? News.com hot discussions |
Weigh in on this week's poll:
 Absolutely! I've done so in the past, so I can definitely do without it all over again. (What if there was an emergency?)
No way! This is my main point of contact and I feel naked without it. (What if you were in a dead zone?) I don't own no stinkin' cell phone, never have and never will! (Why not?)
Maybe. It really depends. (Please explain.)
Vote and
discuss it here!
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week's poll results
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