SUMMARY BOX: Wireless carriers justify early termination fees to break service contract
By APTuesday, February 23, 2010
SUMMARY BOX: Wireless carriers justify fees
WHAT THE WIRELESS CARRIERS SAY: The nation’s biggest wireless companies are telling federal regulators that they give consumers adequate notice about early termination fees that apply to break a service contract before it expires.
THE INVESTIGATION: Last month, the Federal Communications Commission sent letters to AT&T, Verizon, Sprint Nextel, T-Mobile USA and Google seeking information about early termination fees.
WHY THE COMPANIES CHARGE FEES: The wireless companies say such fees allow them to subsidize handset purchases — including purchases of cutting-edge smart phones — for customers.
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