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Telus Adopting More Sensible Early Cancelation Fees – Others to Follow?

ETF Verizon

One of the things that always bothered me about early cancellation fees is that carriers use them as punitive fines though they claim they are to “subsidize phones.” Carriers in the US have gotten a bit better at lowering the ETF every month after they got slammed by class action lawsuits. Carriers still claim they need these ETFs to recover the subsidies for devices but they refuse to base the ETF on those devices.

Electronista noticed that Telus up in Canada has changed their ETF policy to follow their sub brand Koodo. From now on you don’t pay the flat rate ETF but instead pay off the “device balance.” In other words if you bought a $500 device the contract ETF should go down in fractions based on the contract length. While I think carriers will still game the system by claiming the device cost is based on MSRP even if it launched 12 months ago but its still a start.

In my dream world you would have the option of a cheaper monthly plan that does not subsidize devices or a more expensive monthly plan where a portion of it every month would go to paying for the device cost unless you wanted to pay for it fully up front. Something makes me think that dream is a long way off though it might be coming faster with Tablets and LTE/WiMax connected devices. What do you think?

Img Credit: TecheBlog

5 total comments on this postSubmit your comment!
  1. GOOD

  2. Hmmm… Rogers charges $20.00/month to a maximum of $400.00 (I believe). Need to drag my contract out. But it is capped around $400 or $500.00. Usually that would mean you renewed your contract then want to opt out 2 weeks later.

  3. Really would like the part about your dream to pay monthly portions toward the device……but then we would have a high monthly bill :(

  4. would be nice if rogers would follow

    • Rogers Cancellation:min. $100 or $20.00/month to max. $400.00 not sure what the actual telus fee would be but imagine it would be similar. If you have an older price plan that you simply roll over contract dates, i.e. never change the plan acquired prior to 2007 then the max cost if $200.00 to get out of your contract. Although if you have data then it’s an additional $5.00 on top of that to a max of $100.00

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