WASHINGTON (Reuters) - Verizon Wireless said on Friday it is trying to forge a deal with consumer groups and regulators that would reduce the fees customers are charged when they cancel their cell phone service early.
Federal Communications Commission Chairman Kevin Martin said at a media briefing on Friday the two sides had made "substantial progress" toward a compromise, although there was still no final consensus.
"I think it would be good for consumers and, ultimately, good for the industry if there was more of a national framework with consumer protections built into it," Martin said.
Verizon said in a statement it was "pleased the commission is turning its attention to this issue."
The early cancellation fees are a perennial complaint of wireless phone customers and have also drawn complaints from some lawmakers in Congress.
Wireless carriers such as Verizon Wireless, AT&T Inc (T.N: Quote, Profile, Research) and Sprint Nextel Corp (S.N: Quote, Profile, Research) say the fees are needed to ensure they recover subsidies they provide for handsets that customers get under the most popular service plans, as well as other up- front costs and rate discounts for those plans.
Verizon Wireless is a joint venture of Verizon Communications Inc (VZ.N: Quote, Profile, Research) and Vodafone Group Plc (VOD.L: Quote, Profile, Research).
Martin listed several concerns he has about the current early termination fees, including that the fees go into effect even before customers receive their first bills and that, in some cases, they remain high even as a customer's contract nears expiration. Continued...
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