FCC talks the talk on cancellation fees

22 May 2008

The US Federal Communications Commission (FCC) is reportedly negotiating with mobile phone companies to cut their cancellation fees. Currently customers who wish to cancel mobile contracts early are expected to pay fees in the region of US175.

One idea up for discussion would give customers a cooling off period allowing them to switch with no fee at all for the first 30 days or within ten days of getting their first bill. Another idea would be to pro rata the fees over the term of the contract meaning the longer they have been with the operator the less they will have to pay to leave. As a sweetener to the cellcos the FCC will offer immunity from the current court cases on the issue.

United States