Nearly half of cell phone users feel hemmed in by the hefty fees they face for early termination of their contracts, according to a new survey from a consumer advocacy group.
Forty-seven percent of cell phone users said they'd consider dropping their plan if they didn't have to pay an early-termination fee and 13 percent of that group said they'd switch as soon as possible, according to the survey of 775 cell phone users conducted by IPSOS North America for the U.S. Public Interest Research Group, a nonprofit consumer advocacy group.
Of those surveyed, 36 percent said they'd thought about switching from one carrier to another but decided against it because of the fee. Another 10 percent said they'd paid an early-termination fee within the past three years.
Early-termination fees "give consumers no choice in the marketplace," said Ed Mierzwinski, consumer program director for the consumer group. "They trap consumers into their plan by saying, 'You can't get out of it unless you pay us $150 to $240.' "
The fees average about $170, according to the study.
About 182 million phones and wireless devices were being used in the United States in 2004, according to the report. Contract terms generally run one to two years.
Still, 51 percent of cell phone users said they would stick with their cell-phone provider even if their carrier eliminated the fee. The telephone survey has a margin of error of plus or minus 3.5 percentage points.
The report is the latest salvo in the war between consumer advocates and cell-phone companies over early-termination fees.
"The purpose of the report and the survey ... is to make it clear to the FCC that the cell-phone industry is not competitive, that consumers are locked in a cell and they need greater protection," Mierzwinski said.
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