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Cellular Termination Fee

Discussion in 'iPad Carriers' started by bho, Mar 27, 2011.

  1. bho
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    bho iPF Novice

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    In another post it was stated:

    " many people are not aware of a new law passed for cell phone, MiFi contracts. The early termination fee is no longer a flat fee. The termination fee is adjusted by the length of time you have the contract less a specified dollar amount each month beginning from month one. You have to ask these questions with your cell provider."

    Can anybody verify this because the Verizon salesman told me the early termination fee for their two year contract was $300 period. At the time I was trying out a Xoom (which I returned before trial ended) and was real leery about committing to a two year contract. If true, how would this work, terminate service after one year and then be charged $150 fee?
  2. twerppoet
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    twerppoet iPad Legend

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    The normal early termination fee for Verizon is prorated, it reduces over time. I don't know the exact formula. When I got my Droid X, my sales rep was very clear on this point.

    I don't see any reason why this would be different for the Xoom.

    Try talking to a different sales rep. You may have gotten an under-educated one. They aren't robot kiosks. Some are good and knowledgeable, others haven't a clue.
  3. Mountainbikermark
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    Mountainbikermark iPad Addict

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    -$5 a month from the ETF is how the pro rate goes
    Not sure on a Xoom


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  4. Seadog
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    Seadog Super Moderator Staff Member

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    And don't forget there are loopholes in any law. It generally boils down to going into a contract with the best information you can find and then being smarter than the sales people.
  5. bho
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    bho iPF Novice

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    Doesn't really matter now as I returned the Xoom before trial ended. Good information for the future. $5 a month doesn't seem like much credit though but I guess it's better then nothing.
  6. twerppoet
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    twerppoet iPad Legend

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    Over 24 months it is $300, which is pretty close to the price difference between paying full price for a smart phone or getting it with a contract.

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