CTIA–The Wireless Association® Statement on Senator Klobuchar’s Bill on Early Termination Fees

WASHINGTON, DC – Today, CTIA-The Wireless Association® President and CEO Steve Largent issued the following statement in response to Senator Amy Klobuchar's introduction of a bill requiring pro-rating early termination fees (ETFs) over the term of a wireless subscriber's contract.

"This legislation is unnecessary simply because wireless carriers already pro-rate ETFs. That was the response of a highly competitive industry to consumer demand, and this type of prescriptive mandate runs the very real risk of limiting consumer options in the future.    
 
“With more than 95 percent of the U.S. population having an option of at least three different wireless carriers, this is a fiercely competitive market with every carrier competing with each other for every single customer. Consumers have many choices, one of which is to purchase a prepaid plan which comes with no contract.  About 20 percent of American wireless consumers currently have selected that option. 
 
“It is also important to note that a national framework of legislation will provide the best scenario for maximum consumer benefits, rather than allow states to unilaterally impose unique conditions that ultimately increase costs.
 
"We are proud that the American Customer Satisfaction Index found a record high 69 percent of wireless users were satisfied in the first quarter of 2009 and we remain committed to providing U.S. consumers with the most innovative and competitive wireless industry in the world."

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CTIA is the international association for the wireless telecommunications industry,
representing carriers, manufacturers and wireless Internet providers.
www.ctia.org