Quote:
Originally Posted by Tiberius85
I dont think customers realize that the early termination fees associated with long term contracts are high are to pay back the subsidies they received on their heavily discounted phone.
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To be fair, this is not ALWAYS the case. Multiple times through my history with Sprint they talked me into extending my contract for reasons NOT related to a new phone. 10% discounts, change in plans, etc. Point is, a subsidized phone is not ALWAYS relevant to each person's two-year-contract. Besides, we're not interested in losing the termination fee altogether. Pro-rating it is much more reasonable.