Canada’s Telus Scraps Early Termination Fees

Posted by at 1:53 pm on June 20, 2011

Telus on Monday became one of the first major North American carriers to mostly drop early termination fees and changing how it handles upgrades. Taking a cue from its sub-label Koodo, subscribers don’t pay an arbitrary fee but instead pay off the “device balance,” or the amount left on the unsubsidized price that wasn’t paid when the user signed onto a contract. Like Koodo’s Tab, the remaining balance goes down over the length of the contract and can be paid off at any time.

The only other cost for an upgrade is the price of the device itself, Telus said. Those jumping to another carrier or quitting entirely have to pay a $50 “administrative account closure charge” along with the device balance.

Telus’ approach doesn’t necessarily make devices cheaper but does eliminate a common problem of customers being blocked from upgrades or having to pay full price even if just weeks away from an upgrade. Telus may be timing the plan ahead of an expected iPhone launch to simplify the upgrades instead of having to make special exceptions.

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