Press Release
AT&T Raising Early Termination Fees
Contact: Timothy Karr, 201-533-8838
WASHINGTON – According to news reports, AT&T, the nation’s second largest mobile wireless provider, will dramatically increase the penalty it charges customers for ending smart phone contracts early. The largest wireless company confirmed reports on Friday that it will raise smart phone penalty fees from $175 to $325 starting next month.
This fee hike falls one day after the Federal Communications Commission released its annual report on the state of the wireless industry. The report did not conclude that the market reflects “effective competition,” and provided data indicating that the wireless market has become increasingly concentrated and harmful to consumers.
M. Chris Riley, Free Press policy counsel, made the following statement:
“It is ironic indeed that news of AT&T’s early termination fee hike falls one day after the FCC’s report on the wireless industry highlighted the substantial obstacles to effective competition and the restricting effect this has had on consumer choice, service quality and price.
“AT&T’s move to further price-gouge consumers is evidence of its market dominance and the need for real reform of wireless markets. The FCC needs to take action to spur competition, which will lead to lower prices and more choices for consumers who don't wish to be bogged down in long-term contracts."
Links:
http://online.wsj.com/article/SB10001424052748704852004575258511180204610.html?mod=WSJ_latestheadlines
http://techblog.dallasnews.com/archives/2010/05/att-raising-early-termination.html
This fee hike falls one day after the Federal Communications Commission released its annual report on the state of the wireless industry. The report did not conclude that the market reflects “effective competition,” and provided data indicating that the wireless market has become increasingly concentrated and harmful to consumers.
M. Chris Riley, Free Press policy counsel, made the following statement:
“It is ironic indeed that news of AT&T’s early termination fee hike falls one day after the FCC’s report on the wireless industry highlighted the substantial obstacles to effective competition and the restricting effect this has had on consumer choice, service quality and price.
“AT&T’s move to further price-gouge consumers is evidence of its market dominance and the need for real reform of wireless markets. The FCC needs to take action to spur competition, which will lead to lower prices and more choices for consumers who don't wish to be bogged down in long-term contracts."
Links:
http://online.wsj.com/article/SB10001424052748704852004575258511180204610.html?mod=WSJ_latestheadlines
http://techblog.dallasnews.com/archives/2010/05/att-raising-early-termination.html
