FCC Seeks Info on Wireless ETFs

Federal Communications Commission Consumer Bureau Chief Joel Gurin and Wireless Bureau Chief Ruth Milkman sent letters to AT&T, Google, Sprint Nextel, T-Mobile, and Verizon Wireless to gather facts and data on the consumer experience with wireless early termination fees.

This inquiry follows last week's launch of the FCC's Consumer Task Force, which was established to promote cross-agency collaboration on the Commission's consumer agenda. In the letters, the FCC says it recognizes companies "may" have "various rationales" for the fees but says as an issue of transparency and consumer information, the commission wants to get the same set of information from each company on how they inform their customers about the fees.

"These fees are substantial (and in some cases are increasing) and have an important impact on consumers' ability to switch carriers," wrote Joel Gurin, chief of the Consumer and Governmental Affairs Bureau and Ruth Milkman, chief of the Wireless Bureau. " We therefore believe it is essential that consumers fully understand what they are signing up for-both in the short term and over the life of the contract-when they accept a service plan with an early termination fee." CTIA, the wireless association, said it agreed with the FCC that transparency and disclosure were keys, as was understanding what was in contracts.

The FCC requests responses by February 23, 2010.