Klobuchar Blasts AT&T Over ETFs
May 21, 2010
| 4:53 PM
It's been a busy week for Sen. Amy Klobuchar, D-Minn., on the tech and telecom front. A day after criticizing Google for its Wi-Fi data collection practices, Klobuchar blasted AT&T Friday for hiking the fee it imposes for breaking some smart phone contracts.
Noting that AT&T boosted the early termination fee (ETF) for some of its smart phone contracts to $325, Klobuchar said the move provides another example of why Congress and the FCC need to intervene to protect consumers. After Verizon Wireless raised its ETFs last year, Klobuchar, a member of the Senate Commerce Committee, introduced legislation in December that would place restrictions on ETFs. The FCC has been studying ETFs and requested information from wireless operators on the practice.
"Once again wireless providers have shown that they would rather use arbitrary fees than network and service quality to keep customers," Klobuchar said in a statement. "It is time for Congress and the Federal Communications Commission to act to ensure competition and consumer protection in the cell phone marketplace."
AT&T spokesman Mark Siegel said while his company did raise the ETF for some of its smart phones, such as the iPhone and Blackberry Bold, it lowered its ETF on some of its less-advanced phones from $175 to $150. Siegel also noted that ETFs are pro-rated based on when a consumer breaks their contract. "The longer you're with us, the lower your ETF," he said.
He added that ETFs are "one of the reasons our customers can enjoy such low prices on hand sets." Siegel also said that customers can obtain mobile phone service without a contract if they want to pay full price for a handset.
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