AT&T, the nation’s largest wireless carrier, has announced it will reduce the $175 termination fee it charges customers who end their wireless contracts early.

Starting May 25, new and renewing customers will pay $5 less for every month they fulfill of their one- and two-year contracts. For example, if you’ve got one year left in a two-year contract, canceling will cost you $115. However, if you renew your contract or start a new one with AT&T before May 25, expect to pay the flat early termination fee of $175. (Better to wait if you can).

AT&T joins Verizon Wireless, which began pro-rating early termination fees in 2006. Like AT&T, Sprint and T-Mobile also announced in late 2007 that they would take similar action. Sprint and T-Mobile both charge $200 if you end your contract before it is up.

Two weeks ago, U.S. Sen. Amy Klobuchar, D-Minn., sent letters to executives at AT&T, Sprint and T-Mobile urging them to provide assurances that they plan to follow through with those promises. Klobuchar introduced legislation last year requiring wireless carriers to prorate these early termination fees.

Posted on April 2nd, 2008 by admin
Filed under: iPhone News, iPhone Plan