OFFICE OF
THE CHAIRMAN
FEDERAL COMMUNICATIONS COMMISSION
WASHINGTON
Septanber 28, 2010
The Honorable Ron Wyden
United States Senate
223 Dirksen Senate Office Building
Washington, D.C. 20510
Dear Senator Wyden:
Thank you for your letter sharing your thoughts regarding wireless service providers' use
ofEarly Termination Fees (ETFs), and urging the Commission to conduct an investigation into
the use ofETFs for mobile wireless services.
In January 2010, the Commission's Consumer and Governmental Affairs and Wireless
Telecommunications Bureaus sent letters to the major wireless carriers to gather facts and data
on the consumer experience with ETFs. These letters sought information on the relationship
between ETFs, the cost ofthe handset, and the service rates offered by each wireless provider.
The carriers' responses were informative. Verizon's response, among other things, asserts that
the company was making two changes to its practices since December 2009: changing the price
cards displayed next to devices in its stores to include the amount ofthe ETF for each device,
and reducing the number ofdevices subject to the $350 ETF.
Transparency and disclosure are central to the Commission's examination into ways of
empowering consumers to make informed decisions at all stages ofthe purchasing process for
communications services. The Commission is working proactively to eradicate consumer
confusion surrounding ETFs, unexpected charges ("bill shock"), and other issues facing wireless
consumers. Our most recent effort is a Public Notice released in May by the Consumer and
Governmental Affairs Bureau seeking possible solutions for "bill shock." The Commission also
has requested information on ETFs and "bill shock" as part ofthe 15
th
Report on the State of
Mobile Wireless Competition inquiry.
Commission staff is reviewing the comments and information submitted to date in
response to these proceedings and initiatives, and we will include your letter as part ofthat
review. I look forward to the recommendations from staffregarding the next steps, and to
working with you further on these important matters. Please let me know ifyou have any
additional questions or concerns.