Rumor: FCC working with carriers to reduce cellphone contract penalties
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by Matt Hickey on May 22, 2008

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So you want an iPhone. Or you just hate your carrier and want to switch to someone else. You should be able to just do that, right? But you cannot, as there are all kinds of fees and penalties that they hit you with, it’s horrible.

Luckily for you the FCC has your back, as word is it’s been quietly been working with carriers to put together a standard plan on how to handle those who want to switch but are still under contract, including pro-rated penalties, certain “no penalty” periods, and other consumer-friendly measures.

They won’t end the penalties altogether, not any time soon, but it’s a step in the right direction. Some day you’ll have full-featured phone service with no contracts, but until then this is great news, if it’s true.

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  • We could really use this! I want to switch over to the iPod but don’t want to pay the $200 cancellation fee to leave T-Mobile… so for me it is just a waiting game!

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