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Apr. 2, 2008

Today AT and T has announced that it will prorate early termination fees, providing greater flexibility for wireless customers.

Beginning May 25, AT&T users will no longer be required to pay a flat rate early termination fee.

Instead, AT&T’s $175 fee, will be lowered by $5 every month for the term of the contract.

But the $175 fee will still apply to new and renewing customers who sign one or two-year service agreements before the May 25 signup dealine.

Verizon Wireless began prorating early termination fees last year. Sprint Nextel and T-Mobile announced in 2007 that they would also make changes to their fee structures in mid-2008.

AT&T also noted that it offers options for customers who want to avoid fees. Users that elect to do so can still pay full price for a cell phone and sign up for a month-to-month service plan.

Or they can still bring in a compatible GSM handset and buy a SIM with a month-to-month service plan or go prepaid with AT&T’s new GoPhone program.

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Source: AT&T.