Sprint to launch new early-termination fee policy

OVERLAND PARK, Kan. - Sprint Nextel Corp. said Friday that it is rolling out a new pro-rated early-termination fee policy that will lower the cost of backing out of a contract early depending on how long the pact was held.

The updated policy, which goes into effect for new contracts on Sunday, drops the $200 early-termination fee by $10 a month starting with the pact's sixth month. This puts the fee at $100 during the 15th month of service, and could drop the fee to $50 prior to a contract's expiration.

The policy covers both new customers and existing customers that renew their agreements.

Sprint also said it will keep its 30-day trial service policy. Under the plan, customers can return their phone and deactivate service within 30 days if they are unhappy with either one. Activation fees are returned and the early-termination fee is waived. Customers remain responsible for actual usage charges.

Shares of Sprint Nextel were unchanged at $3.49 in morning trading.

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