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Verizon Wireless announced three days ago its intentions to
reach an agreement with consumer groups and regulators in order to reduce the
fees charged when users decide to cancel their cell phone service before their
contracts expire.
Kevin Martin, chairman of the Federal Communications
Commission, explained according to Reuters, that there has been a substantial
progress in the discussions concerning this topic and that the plan to build a
national framework with consumer protections will be good for both consumers
and industry.
At this moment, wireless companies charge subscribers who
want to terminate their contract early a fee starting at $175. While people consider
these fees unnecessary and see them as a way of preventing subscribers to change
their service providers, Verizon Wireless, AT&T Inc, Sprint Nextel Corp and
other wireless carriers say that the fees are used to cover some of the cost of
the cell phones that are sold cheaper to subscribers, as well as the costs of
signing up new customers in the network.
If the Federal Communications Commission will decide to move
forward with the regulation of the cancellation fees, it will set a national
standard that will make things clearer for everybody. Currently each state
offers its own regulations. On the other hand, consumers will have to address
their complaints directly to the FCC, which has scored poorly on how it handles
them.
Verizon spokesman David Fish was quoted by the Wall Street
Journal saying that "it makes more sense for wireless consumers and
providers to have one set of clear and consistent guidelines, rather than a
50-state patchwork of regulations."
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