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Sprint won't change early termination fees

In response to Verizon Wireless' unpopular announcement that it will double its cancellation fees for smart phone subscribers, Sprint Nextel took the opportunity to say it would not be following suit.

Instead, Sprint subscribers with two-year contracts will still be charged $200 when they end their agreements early. That fee -- for all phones -- will be prorated after five months into the contract by $10 each month. So if you terminate your service one year into the contract, you'll be charged $140.

"We don't think customers who buy smart phones should be penalized," said John Taylor, a spokesman for Sprint.

Verizon said its new early termination penalties will take effect November 15 for smart phones and net books, which are getting more expensive. The company said it bears the cost of offering lower upfront prices on those devices and needs the assurance that customers will stick with their service plans so it can recover that subsidy.

By Cecilia Kang  |  November 5, 2009; 5:18 PM ET
Categories:  Consumers , FCC , FTC , Mobile , Verizon  
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