Thursday, October 30, 2008

Sprint Gives Us All a Break on ETFs

UPDATE 10/31: According to Sprint's official press release regarding the new policies going into effect on 11/2, the reduced ETF policy will only apply to accounts started on or after November 2nd. Existing customers wanting to cancel their service will still have to pay $200, no matter how far into your contract you are.

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Sprint gave us some bad news earlier this week with the announcement that they would start charging customers who went over the 5GB limit on their EVDO data plan (read more information about that and how it measures up to Verizon's and AT&T's overage charges here), but today we got wind of a POSITIVE change that will also go into effect on 11/2.

Beginning 11/2, Sprint's $200 early termination fee will be lowered for customers canceling after 4 months. The maximum fee will remain at $200, but after those first four months the fee will be calculated at a rate of $10 for each month remaining in the contract. So, if you are halfway through the 24 month contract, your cancellation fee would be $120 (12 months remaining x $10). There is a $50 minimum, though, so once you get down to the final 5 months of the contract the fee will remain at $50.

$200 was certainly an exorbitant fee, especially when Verizon has been pro-rating their ETF for quite some time now (they charge $175 minus $5 for each month of the contract you've completed), and its about time they gave their customers a break based on how long they've been with the company!