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FCC Discusses Early Termination

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FCC Chairman Kevin Martin has said that along with investigating wireless carriers' early termination fees, the regulatory body also should consider limiting fees telephone and cable companies can charge customers who cancel services before their contracts expire.

Kevin Martin 

Kevin Martin

"This issue may be broader than just the wireless industry, and I think the commission should look at what the implications are across the different platforms," Martin reportedly told journalists before a meeting earlier this week. He said the commission could examine the issue before the end of the year.

However the commission has yet to address the issue of early termination fees, the subject of consumer suits and now even federal legislation, despite the fact that CTIA requested the commission to look into the matter as early as March 2005. CTIA requested the commission to investigate carriers' use of fees, to save wireless carriers from legal battles, as well as pre-empting states from creating rules that differ state by state.

Chairman Martin said the commission could possibly put together a panel to examine early termination and other fees charged to customers by telecom operators.

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