Sprint gets smart and prorates ETFs

After being sued this past summer along with Verizon for early termination fees, Sprint has finally decided to prorate them or make a tiered ETF policy. Much like other carriers, the initial fee goes down in cost as your contract matures. Pretty smart move after losing about $73 million in settlement fees for the class action lawsuit filed against Sprint in California. Sprint CEO Dan Hesse says that its ETF will be lowered as soon as December when “billing software” is updated and ready. As we all know, the reason for ETFs is the carriers say it helps recover cost of subsidized devices. That’s kinda true, but what if you’re already a year or more into your contract and you have to pay $200 to bail out? Making a tiered system is a better idea. Sprint is late to the party but better than never.

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Tags: Dan Hesse, early termination fee, ETF, Sprint, Verizon