All four major U.S network operators — AT&T, Sprint, T-Mobile and Verizon Wireless — together with Google responded to an inquiry made by the Federal Communications Commission over early termination fees. All five organizations files official responses on Feb. 23, and stated that customers are well informed about ETFs before committing to wireless contracts, and know that they have plenty of choice, given the wide range of pre-paid providers also serving the market. The network operators noted that the industry is highly competitive, and ETFs are needed to recoup fees that go towards customer acquisition and equipment subsidies. Verizon indicated that it plans to clearly put ETFs on device cost labels, and told the FCC that is has reduced the number of handsets on its “advanced devices” list, which require a $350 fee (compared to the standard fee of $175). Google defended the equipment recovery fee it is charging Nexus One customers who break their T-Mobile contracts because it says T-Mobile pays it a commission for each customer T-Mobile acquires through Google. Google passes that commission on to the customer in the form of a device subsidy. All the companies noted that customers have a minimum of 14 days to test products at the onset of their contracts before the ETF becomes mandatory.
Via: Phone Scoop.com