Finally the Goverment does something good. FCC to tackle some high cell phone fees

The chairman of the Federal Communications Commission laid out a plan Thursday to regulate the high fees that cellular phone companies charge consumers for canceling their contracts early.

FCC Chairman Kevin Martin's proposal was similar to an industry plan put forward last month.

Companies charge early termination fees that can range from $150 to $225 to recover the cost of cell phones, which they subsidize under long-term service contracts, according to wireless companies. The fees also defray costs for signing up new customers, companies said.

Martin's plan would require the fees be related to the actual cost of the phones. A fee for a $50 phone would be higher than for a $5 phone, he said.

Martin said such fees should be pro rated, or reduced over the time of the contract. The nation's two largest wireless carriers have both begun pro rating fees with other national carriers promising to follow.

I hope this goes through.

From AP