Genachowski's Response Senators Regarding Early Termination Fees and Bill Shock

On May 25, Sen Ron Wyden (D-OR) wrote Federal Communications Commission Chairman Julius Genachowski urging the FCC to launch an investigation of wireless early termination fees (ETFs).

Sen Wyden wrote: "The nation's largest wireless carriers claim that these ETFs, which can now be as high as $350, are in place primarily because of the subsidized price charged to consumers when they initially purchase a phone from their wireless carrier. Unfortunately, current data collected by the FCC does not include information about pricing structures for wireless devices. Consumers are in the dark about how much they are paying for their wireless device, regardless of whether they are subject to an ETF."

On September 28, Chairman Genachowski wrote back to Sen Wyden outlining actions the FCC began in January 2010 -- seeking information from major wireless carriers on the relationship between ETFs, the cost of the handset, and the service rates offered by each wireless provider. The carriers' responses, Chairman Genachowski wrote, were informative. The FCC also released a Public Notice in May seeking possible solutions for "bill shock."