AT&T Offers Pro-Rated Discount on Early Cancellation Fee

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AT&T Offers Pro-Rated Discount on Early Cancellation Fee

6:30 am on April 2, 2008 | Category: Telecom Services, Wireless

America’s leading wireless carrier, AT&T, says it will alter (but not eliminate) a flat fee it charges for early termination of wireless services.

The $175 fee, which is charged to all customers that renege on a one- or two-year service agreement, is designed to reduce customer churn and prevent postpaid subscribers from jumping to other carriers.

Beginning May 25, the fee will be reduced by $5 each month that a customer is under contract. A user who canceled his or her service 16 months into a two-year contract, for example, would only have to pay $95 in cancellation fees.

This new policy will give greater flexibility to consumers, according to the San Antonio-based company, while continuing to deter subscribers from breaking their contracts on a whim.