Early Termination Fees

An Early Termination Fee (ETF) is a charge you agree to pay your wireless carrier if you break your service contract with them before it’s reached its full term. You might be wondering why ETFs are necessary. Remember, you are signing a contract, and just as the carrier is promising to deliver specific services for a guaranteed price, you are committing to be a customer for a specific period of time. Because you’re going to be a long-term customer, the carrier can offer you the best possible price it can for wireless service.

It’s also important to know you don’t have to sign a contract that includes an ETF. Prepaid and hybrid plans are also available, but the lack of a long-term commitment means you won’t get the lowest price the carrier can offer for service. Most people choose long-term contracts with ETFs because of the savings they offer. 

ETFs aren’t unique to wireless, either. Airline tickets, health clubs, some magazine and newspaper subscriptions, and cable and satellite television services are just some examples of services that include a form of price considerations for longer-term commitments, and some type of fee for violating that.

It’s also important for you to know that different carriers have different ETF policies. Their charges might vary, and some might pro-rate the ETF. If you have any questions, be sure to ask your carrier.

CTIA’s Wireless Career Center is the wireless industry’s exclusive resource for online employment connections.


Job Seekers:
Is free to all job seekers and provides you with access to the best employers and jobs in the wireless industry.


Employers:
Offers the most targeted advertising for your industry job openings.