Have you ever wanted to break your cell phone contract for any reason, poor phone service, you needed to move, or you merely wanted a new smart phone, or a different plan, but find the early termination fee is outrageous to pay ?

Phone carriers have consistently argued ETF’s are necessary so they can offer phone services at a discount rate to consumers, but many consumers find it hard to accept ETF’s are anything but a penalty that keeps them locked into their contracts. ETF’s enable phone carriers to dominate the market segments they control. Most notably, ETF’s ensure the profitability of exclusive arrangements such as AT&T’s agreement with Apple to market iPhone.

Now, before the Senate Commerce Committee is Senate Bill 2825, the Cell Phone Early Termination Fee, Transparency, and Fairness Act. It is the second time since 2007, that legislation has been proposed to reduce ETF’s by regulation. To promote not only promote fairness to consumers, but minimize the anti-competitive effect ETF’s have on the phone industry.

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