Sprint Nextel is joining the other three incumbent mobile operators in cutting the penalties it imposes on customers who choose to end their contracts with the company early. The operator’s early termination fees are expected to be reduced gradually for each month the customer completes of their contract. The Associated Press reported that Sprint chief executive Dan Hesse said in an interview this week that the lowered prices could be introduced as soon as December.
In the middle of the year, the Federal Communications Commission (FCC) began considering the issue of early termination fees and a judge, acting on a consumer lawsuit against Sprint, said the early termination fees probably contravene state law. However, the wireless operators claimed the fees were necessary to allow them to recoup the subsidies they pay towards handsets and service set-up costs.