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The Honolulu Advertiser
Posted on: Saturday, May 24, 2008

FCC may curb cell-phone fees

Associated Press

WASHINGTON — The head of the Federal Communications Commission said yesterday he wants to regulate fees companies charge cell phone users who cancel their wireless contracts early.

At a news conference, FCC chief Kevin Martin would not say whether he endorses an industry plan to help consumers avoid "early termination fees" as detailed earlier this week.

But Martin said he supports regulating the fees at a federal level, even if it affects a series of class-action lawsuits against carriers in state courts.

Consumers would benefit more from a national standard that addresses many of the problems with the current fees system than from a potential lawsuit that may affect consumers in one state, Martin said.

Martin said industry and consumer groups were negotiating over easing of the fees, which have infuriated consumers. But so far, they have been unable to reach consensus.

Cell phone companies routinely charge customers $175 or more for quitting their service early.

Under the wireless industry proposal, consumers would have the opportunity to cancel service without any penalty for up to 30 days after they sign a cell phone contract or until 10 days after they receive their first bill.