Cell phone companies started them and now satellite and cable companies use them as well. I think I'm committed to 6 years with DirecTV for the privilege of only paying $99 each to upgrade DVR's in my house.
Some Senators have introduced a bill that would limit early termination fees from mobile operators, saying they couldn't charge more than the subsidy they provided for the phone itself, and that the rules for any early termination fee needed to be quite clear. Not surprisingly, the mobile operators and their lobbyists are saying this is "unnecessary" because (due mainly to gov't pressure, not competition, as they claim) the operators have already made the ETF process less ridiculous by going with pro-rated fees based on how long is left on a contract. Of course, if it's true that the law is unnecessary, then it's not clear why they're against it...
via Techdirt by Mike Masnick on 12/3/09
Some Senators have introduced a bill that would limit early termination fees from mobile operators, saying they couldn't charge more than the subsidy they provided for the phone itself, and that the rules for any early termination fee needed to be quite clear. Not surprisingly, the mobile operators and their lobbyists are saying this is "unnecessary" because (due mainly to gov't pressure, not competition, as they claim) the operators have already made the ETF process less ridiculous by going with pro-rated fees based on how long is left on a contract. Of course, if it's true that the law is unnecessary, then it's not clear why they're against it...
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