In long-awaited anticipation, AT&T released a press report this morning stating and when and how it would implement the Prorated Early Termination Fee policy it announced last fall. We have wondered exactly what the policy would be, and as a whole I am pleased by the announcement.

"AT&T today announced a new approach to early termination fees (ETFs) that provides greater flexibility for wireless customers.

Beginning on May 25, the company's new and renewing wireless customers who enter into one- or two-year service agreements will no longer be required to pay a single, flat early termination fee. Instead, that fee, which is $175, will be progressively lowered by $5 during each month, every month, for the term of the contract. (The single, flat ETF will continue to apply to new and renewing customers who enter into one- or two-year service agreements prior to May 25.)"

This is wonderful news for any customer who worries about signing a contract because they feel locked in for 2 years. What this means is that after you have been a year through your contract, it will only cost you $115 to get out; with 6 months left, only $85 (If I'm making the calculations correctly).

Sadly, customers who currently have contracts cannot take advantage of the prorated fee, but as of May 25 any customers who sign for new contracts will have this policy to take advantage of.

The full report is at this link.