Cellphone Companies Slash Termination Fees

Cellphone Companies Slash Termination Fees

The New York Times reported Thursday that cellphone carriers are reducing the penalty fees levied against customers who switch companies in mid-contract.

That’s good news for the 3.5 million U.S. cellphone users — or 1.4% of the 255 million cellphone users in the U.S., according to Nielsen Mobile — who switch carriers each month. 

It also makes sense for the carriers.  About 25% of the people who switch companies are willing to consider switching back again within a year, Nielsen Mobile reports.  Carriers’ desire to lure back these former customers might explain their growing reluctance to penalize contract breakers, Nic Covey, Director of Insights at Nielsen Mobile, told the Times.

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