Sprint to pro-rate early termination fees

In an interview earlier this week, Sprint's CEO Dan Hesse told the Associated Press that his company could begin pro-rating early termination fees as early as December. ETFs, as they are known, have been a point of contention this year for the carriers. Verizon Wireless, AT&T Wireless, and T-Mobile USA have all switched over to a pro-rated ETF system that sees the fees being reduced based on the amount of time the consumer stays within the contract.

Hesse said that the new Sprint system would reduce a customer's ETF slightly each month that he or she maintains a contract.

Earlier this year Sprint was ordered by a California judge to reimburse more than US$73 million in early termination fees. The judge found that the ETF structure Sprint used violated California state law.