No More Unexplained Fees by Wireless Service Providers – FCC Questions Google and Others on Early Termination Fees!

Finance | February 8, 2010 at 1:57 am

Wireless service providers have been taking customers on a ride by imposing unexplained fees on them! But not anymore!  I’m glad that regulatory bodies have woken up to the unfair practices of service providers and have started questioning their justness. The Federal Communications Commission questions Google and wireless service providers on the early termination fees that they are imposing on clients of wireless services. FCC enquires the leading wireless service providers, namely, AT &T, Verizon Wireless, Sprint and T-Mobile about the early termination fees and if they should be charged at all. The FCC says that there is no definite framework for service providers to charge early termination fees on their customers and such moves were questionable by the FCC. This was the reason they issued questions to the service providers regarding the approach and implementation of ETFs on customers.

The FCC has decided to question the wireless service providers through questionnaires so that the customers are FCC Questions Googleenlightened about the ETFs. This will enable them to be prepared for making such payments or take services from wireless service providers who do not charge ETFs. They can also use the information provided by the FCC to choose the service providers that provide the best services at the most economical prices.

A few days earlier you might have heard that canceling T-Mobile’s Nexus One is going to cost you $500, which is quite a painful amount! The major part of the fee is supposed to be going to Google as an equipment recovery fee. The T-Mobile’s ETF will cost an additional $50. So on the whole, you’ll be charged $550 which can be quite pinching.

Congratulations to FCC for taking the initiative at a time when more than 80 % communication companies are charging meaningless fees and customers are paying up in an equally insensible manner. This responsible step of FCC comes as a great relief to harassed customers who find the fee pretty burdensome on their weak pockets.

There is a necessity for more transparency in the fee policies of the service providing and facilitating companies. The criterion for payments should be stated in simple terms so that the customers understand them without any doubts and are not taken by surprise by fees that are not mentioned in the contract. The companies should provide about the termination charges at present and of prorated charges. All service providers are expected to be consistent with pro-rated charges. The pro-rated fee should be calculated on the length of time of the contract divided by the fee.

The FCC wants its answers from Google and the service providers by the 23rd of this month. However, the FCC wants to keep the answers confidential. Then why is the FCC not obliging to the requests for transparency of the information obtained? Well, the FCC knows its reasons best. But do you think it should keep the reports confidential or should it make them transparent?

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