Minn Senator Looks To Limit Early Termination Fees

Corporate consolidation is as natural as the Earth circling Sol.  That's the best analogy I can think of in such a short while.  Banks do it.  It's why we've got the too-big-to-fail policies.  (I'll let you poder whether those are good policies or not.  It's above my paygrade to worry about that.)

It is the same in the telecom industry.  We've got 4 major players in the US, Verizon Wireless, ATT, Sprint (who goggled up Nextel), and T-Mobile.  These guys got there where they are because of buyouts and such.  FCC allowed them to do it and so be it.  And while competition is still pretty good, it was not like it was 10 years ago.  You've still got regional players.  This is still much better than the cable industry.  There, virtually zero competition.

There is competition for market forces to do its things.  So, why is Senator Amy Klobuchar of Minnesota trying to legislate how much anyone can charge for early termination?  Poll numbers not looking too rosy, perhaps?

Here's where I stand on these terminations.  I think they're bad for business.  BUT!  But, I understand why they're needed.  The fact that the termination fee is the same one month into the contract versus fifteen months into the contract is stupid but it's the nature of the beast.  It sucks.  However, some carriers already prorate termination fees.

But competition there is and if folks don't like it, they can go to another carrier.  Verizon recently hiked their early termination fee from .  Fine, you'll never see me with a Droid because of that (plus I don't like Droid's keyboard.  Do better on that, Moto).

Again, I've got mixed feelings about the way termination fees work but I hope the market will sort it out without protection and meddling from lobbyists on both sides of the issue.  The legislation under consideration, may be a politically good move, also stipulate terms and disclosures.

What do you think?

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