Verizon Wireless to Reduce Contract Cancellation Fees

Telecom News Editorials Reports Glossary

6:30 am on July 1, 2006 | Category: Telecom Services, Mobile Devices, Wireless, Cell Phones

Verizon Wireless formally announced this week that it would reduce the $175 early termination fee charged to customers that cancel their cell phone service contracts.

Specific details of the new pricing scheme won’t be released until the fall, but the wireless giant has promised that they will vary based on how much time is left on the contract.

The Consumers Union has given their tentative support to the new plans saying that this “is definitely a step in the right direction to eliminate the onerous burden of early termination fees,” but that more could still be done to reduce such penalties.

Ultimately, Verizon’s decision will likely trigger a domino effect, forcing other carriers to lower their contract termination fees, and potentially benefiting all cell phone users.