Starting next month, customers who change a wireless calling plan will no longer be required to extend their current contract with AT&T or sign a new contract.
Customers that choose not to sign a contract can choose the pay-as-you-go option, which AT&T offers with its GoPhone.
"Customers have told us they do not like one-size-fits-all approaches. They are right, and that is why we have made these important changes," said Paul Roth, president of sales and marketing for the carrier's wireless unit, in a statement.
AT&T's policy change follows on the heels of a lawsuit filed by customers against T-Mobile, seeking an injunction that would prevent the carrier from collecting an early termination fee of about $200 from customers. Last week, the California Supreme Court gave a go-ahead for the lawsuit, despite T-Mobile's efforts to dismiss the case. T-Mobile is now facing a class-action lawsuit.
Carriers argue they cannot eliminate early termination fees altogether because they wouldn't make a profit, since they already offer subsidized mobile phones to customers. But customers feel that a flat rate that carriers charge is unfair.
One InformationWeek reader wrote in response to an article on the T-Mobile lawsuit: "Two-hundred dollars over 2 years is about $8.33 per month. If the carrier is subsidizing my phone, then they have the right to get back that cost. Charge me $9 per month for each month left on my contract when I cancel. $200 for canceling 1 day before is robbery."
AT&T's new policy to charge a fee based on the term of a contract is not an ideal solution, but it's a start. Other carriers are likely to follow in its footsteps in fear of lawsuits.
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