Early Termination Fees (ETF)  RSS Feed

CTIA Position:
Early Termination Fees provide consumers with numerous benefits, notably lower costs for wireless services and products. The Federal Communications Commission should declare them as part of the rate structure for wireless services. As such, state efforts to regulate ETFs would be prohibited.

Key points:

  • ETFs Help Produce Lower Overall Wireless Rates ETFs provide consumers  with cost savings in service and products because of the certainty and  stability ETFs allow carriers.The vast majority of wireless consumers choose   rate plans that include ETFs because of these savings.
  • ETFs Dramatically Reduce Economic Barriers for Wireless Subscribers because of the cost savings ETFs provide, consumers such as younger and lower-income users are more able to utilize affordable wireless communication.
  • Wireless Consumers have Several Rate Plan Options Substantial competition exists in wireless, and consumers have a multitude of rate plan choices. These include prepaid and hybrid plans that do not include ETFs.
  • ETFs are Used by Numerous Businesses Various forms of ETFs and discounts offered because of them are a common practice in many industries for a variety of services. Examples of that are airline tickets, magazine and newspaper subscriptions, health club memberships, entertainment and sporting event tickets, and cable and satellite television services.
  • Restricting ETFs Limits Consumer Choices and Increases Costs Regulating the rate structure of ETFs would limit consumer choices in this competitive industry and ultimately harm consumers. Wireless is a national industry, and allowing individual states to regulate ETFs could likely lead to increased costs for all consumers.