So like me many of you read the recent court ruling in California stating that Cell Phone Termination Fees are not legal and the phone industry must stop charging them.  Well first we have a long ways to go, the Federal Government will get involved because we can't have each state ruling and causing 50 different sets of rules. 

Let me give you both sides of this debate;

The Good about early Termination Fees

This allows the carriers to offer you phones at a much cheaper price because they have 24 months to recoup the true cost of the phone.

The Bad about early Termination Fees

The price of phones will go up to about the recommended manufacturer price.  On Smartphones that could be $300 to $400 more then current prices.

In my personal opinion I like the idea of ending Termination Fees so we the users have many more options.  Yes this means we pay more for the phone up front but the carriers are going to have to raise their level of customer service to keep us.  People move all the time, what happens if in your new home no bars, should you be punished because of their service?

In the spirit of competition I think ending Termination Fees will lead to lower monthly cost to the consumer.  Current plans have a portion set aside to pay for that free or reduced price phone.

I always tell my students, "Don't look at the cost of the phone, look at the cost of the phone and the Two year monthly fee to see the true cost of your deal".  I think it will all be about the same in cost but should see more options and better service.

Dick Betts

National Speaker Real Estate

Mobile Technology Trainer

www.DickBetts.com

Dick@DickBetts.com