We mentioned awhile back that the FCC had made a formal request to Verizon about their ETF standards and their new Advanced Devices double ETF. Now Reuters is reporting that the FCC has expanded its net to include AT&T, Sprint, T-Mobile, & Google in the inquiry. They are asking questions as to how the ETF is determined and applied.
As Engadget points out: If even the FCC cannot understand how carriers calculate their ETF’s how can normal consumers be expected to understand. I personally just explain it as an arbitrary penalty that carriers put on customers not to break their contracts. There is no rhyme or reason to calculate it but it just needs to be sufficient enough to deter most customers from cancelling.
via FCC (PDF)