Broadband providers charging early termination fees
Broadband Internet providers are increasingly imposing early termination fees to keep their customers from straying away for a better deal somewhere else.
“Cancellation penalties are anti-competitive and deprive consumers of the benefits of competition in the markets where there is more than one broadband provider,” says Kenney. “The justifications for them are suspect. Once enticing consumers to sign up, broadband providers should rely on quality
and service to build customer loyalty, not onerous contract terms that hold consumers hostage.”
Like wireless phone companies, broadband providers who have started including early termination fees and requiring long term contracts for promotional offers say they are justified. That’s because consumers are usually getting a break on monthly rates, as well as free or discounted installation and equipment, such as modems.
“Basically, we are charging the (early termination) fee to regain what we have been giving the customer for free,” says Bobbi Henson, director of Media Relations at Verizon. “Customers who sign a (high-speed Internet) contract with us get free installation and sometimes free equipment. They also save $2-$8 on their monthly rate.”
Check on what your broadband provider is charging here, and then go here and tell the FCC via an already-written e-mail to stop early termination fees.
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