FCC to address early termination fees

In response to a number of class action lawsuits over early termination fees, cellular providers have asked the FCC to take jurisdiction over the fees, thus moving the issue out of state courts.  Rather than eliminating the fees, the industry proposes that the fees be modified, prorating after a 30-day introductory period, rather than eliminated.  Providers claim they need to charge early termination fees to make up for the cost of discounted phones if the customer cancels early.  But the Consumers Union points out that the average cost of the discount is $14.33 while the average customer revenue over five years is $3,665.