Sprint to Prorate Contract Termination Fees

Sprint will finally change course and start prorating early termination fees, company CEO Dan Hesse said this week, adding that the prorated fee could take effect as early as December, CNET News reports.

“Sprint has been the lone holdout of the major carriers in trimming ETFs as customers near the end of their two-year contract. T-Mobile started prorating fees in June following the lead of Verizon Wireless and AT&T.”

Carriers point to early termination fees as the only way they can hedge and recoup costs against the heavy discounts they offer up front with new cell phones. At the same time, by the time you’re one year into a two year contract, you’ve already paid for far more than the cost of the subsidy in monthly fees.