T-Mobile Tackles Prorated ETFs

posted Jun 23, 2008, 11:46 AM by Eric M. Zeman

Today T-Mobile announced that it will begin prorating its early termination fees. Rather than deduct a dollar amount each month, T-Mobile has taken a different route. ETFs for both one- and two-year agreements are $200. During the last 3 to 6 months of a contract (91 to 180 days left), the ETF drops to $100. During the last 3 months of a contact (30 days to 90 days), the ETF drops to $50. For customers who choose to cancel a contract with less than 30 days remaining, they will pay either $50 or the amount of the last month of service, whichever is less. This means customers who are in the first 6 months (for 1-year contracts) or first 18 months (for 2-year contracts) of their agreements will still have to pay the full $200 ETF to cancel.

from T-Mobile

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