Monday, November 3, 2008

Sprint details pro-rated early termination fees

Sprint details pro-rated early termination feesSprint on Friday announced details of changes to its early termination fees (ETFs) first introduced last week, which are due to come into effect on November 2nd. Sprint will reduce customers' $200 ETF by $10 for every month past the sixth month of their contracts, hitting $100 in the 15th month of a contract, which is the lowest pro-rated ETF in the industry, the wireless provider is quick to point out. Before a user's contract expires, the fees could dip to as low as $50.

The company will also continue to offer its 30-day trial service to customers, who can return handsets and deactivate service without a financial penalty within the first 30 days of their contract.

While Sprint may have the lowest pro-rated ETF rates in the industry, the provider was the last among major wireless companies in the US to embrace them and recently faced a court defeat that attacked the company in part for charging customers the high price of a full ETF when they cancelled service.

The pro-rated ETFs are the latest move in the company's efforts to improve satisfaction among its customers, which is widely regarded as one of the contributing factors to the company's decline in subscribers. Sprint recently led a customer service survey that supports its belief its service efforts are proving effective.



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