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FCC Will Hold A Hearing To Talk About Cell Phone Contract Fees

By Erik Folgate

Tomorrow, the FCC and Congress will look into the high fees that cell phone companies charge consumers for canceling their contract early. We are all well aware of the exorbitant fees that cell phone carries charge for opting out of a contract early. Plan contracts have been a staple for cell phone companies since the dawn of the cell phone industry. It’s a way for cell phone companies to retain customers through leverage and incentives if a customer is loyal to the carrier.

This article from Fox News talks about how a government agency was given lesser fees for canceling their contract early, and the associated press got a hold of an internal email between two employees of Nextel saying that the government would never pay such high fees. Even the employees of these companies know that the fees are ridiculous!

I really hope that the FCC makes cell phone companies drop their fees altogether, because I think it reduces the amount of competition available in the cell phone industry, and it gives cell phone companies leverage to keep customers. Plus, I really want to switch to AT&T so I can either get the new G3 iPhone or the Blackberry Curve. I’m ready to start answering email with my phone. We will see what happens, but hopefully the fees will be reduced at the very least.

Erik Folgate
Erik and his wife, Lindzee, live in Orlando, Florida with a baby boy on the way. Erik works as an account manager for a marketing company, and considers counseling friends, family and the readers of Money Crashers his personal ministry to others. Erik became passionate about personal finance and helping others make wise financial decisions after racking up over $20k in credit card and student loan debt within the first two years of college.

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Comments

  • http://greenpandatreehouse.com Laura

    I want the G3 iPhone too! We’re on AT&T and we finished our 2 year contract. The service has been fine and most of my family is on AT&T. The fees are enough to keep me with them even if the service dropped by a little. I don’t want another contract.

  • author

    yeah, It will be awesome with the broadband speed internet. I have such an old, clunky phone right now because I am just waiting to get something that is the latest technology, rather than just getting another cheapo phone.

  • Liz

    Would it kill them to put a date on this story? When was it written? When is this mysterious “tomorrow” they are speaking of?

  • http://profile.yahoo.com/3CKJ4HC53H7JGEZ3M7JNVOLYHY Johny

    Where are the dates for the comments and the article?

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