The FCC sent some letters to all the US mobile phone carriers today (Verizon, AT&T, T-Mob, and Sprint) including Google which asked them to explain how they make the early termination information known to consumers. They believe that consumers are confused about ETFs, especially because they are different at every provider.
Well, thanks FCC for inquiring on something that seems fishy, but do most consumers even care about ETF?
I say no. Unless they are an obsessed type of gadget hound like myself that needs to have the latest greatest device that is available. Other than that, most consumers I imagine don’t even know what the ETF is or when most carrier’s ETFs increase. Here is what the FCC thinks about all of this:
The absence of a standard framework makes it especially important that consumers have a clear understanding of terms and practices of individual companies, which will allow them to compare services offered by different providers on a clear and consistent basis
Once again, I say it doesn’t really matter to standard consumers. They will make the choice of a new device based on it’s price, features, and service, not the possible early termination fees. If consumers are worried about ETFs then they will buy unlocked or used phones on eBay or from other consumers and activate them without contract. Either that or they will go with a service like Boost or Virgin (both sub-par from my experience).
One more thing. If someone buys a new device from any of the four largest US carriers they still have to pay full price for any of the plans that go with the phone. I thought that these phones were subsidized? If so, when someone buys a brand new device they shouldn’t have to pay as much for service.
So, do early termination fees really matter? Or is the FCC just trying to become another consumer watchdog that wants consumers to think that they are doing something important?



