Can someone explain why it cost nothing to end your landline service, but it costs hundreds to

[mfcorey1]

end cellphone service before two year contracts terminate? Is it legal?

[a geek named Bob]

1. As my wife says...

because you signed a contract that says so.

That's the only reason.

[justabob]

2. that word.... contract nt

[mfcorey1]

7. Maybe regulating a cap on termination fees would be better. Hundreds of dollars is as high

as a payday loan.

[justabob]

13. I don't know what the answer is

other than waiting out your contract and switching providers. The big boys aren't going to give up on the contracts because they like their captive customers. I was with Sprint and it sucked. I just had to suck it up and wait out the end of my contract. A lot of people have been unhappy about this for years now. I wish I had better advice.

[Walk away]

3. Because you agreed to the terms.

That how everything works.

[sammytko]

4. No contract necessary if you pay full price for your cell phone.

You can then cancel at any time!

[hobbit709]

5. That's why I have a Tracfone

[a kennedy]

15. Bingo, we do too....

[2on2u]

6. Cuz you will disturb the invisible wavelengths in the sky, they will bounce around all

will nilly just because you broke your contract early. I hear ya, having to sign a contract just to use a phone is a tad silly imho.

[Schema Thing]

8. mostly because they don't give you a several-hundred-dollar phone to start your landline service.

My cell phone company doesn't give me a phone, so I can drop it at any time w/o penalty.

[Travis_0004]

9. A cell phone is subsidized.

I bought a phone (albeit a high end one). It cost me 200, but sprint paid around 500 for it, so its a 300.00 loss. They need to make that money back through a few years of me paying my phone bill. (its even more expensive if you buy it at best buy or someplace else, since they are paying them for selling the phone.

Even if you get a free phone, it still cost the cell phone company money. There are plans such as Tmobile that if you don't get a subsidized phone you save money every month, and you don't sign a contract.

I'll admit, its bullshit when they make you sign a contract when you don't get a subsided phone, but at least that is a lot more rare these days.

I don't have a landline phone, but if I signed up for it, it doesn't cost the phone company money up front. They type some stuff into a computer, and I have service, so if I cancel next month there is no loss.

[OneTenthofOnePercent]

10. Uhhh... because you signed a contract with a minimum term limit?

[NYC_SKP]

11. That's how they can afford to "give" you the phone "for free".

Interestingly, long ago, most people with land lines didn't own their phones.

The old dial phones were most often rented from the phone company.

Eventually, more and more phones could be purchased from stores, and you'd return your phone to your local phone company and stop renting it.

I bought my parents their first push button phone.

I also bought them their first VCR.

Draggin them into the 20th century!

[Comrade_McKenzie]

12. It's time we passed legislation to end contractual agreements for phone service.

With the inevitable doing away of landline services and uncertain economic times, asking people to sign a two-year contract for a NEEDED service is asking them to predict their financial status two years in advance.

[kelly1mm]

16. You can do that now if you pay the cost of that "free" phone up front. So, for that needed service

you would have to pay $50-$500 up front then the monthly service. I just got a high end (not really but for tracphone it is, it has piggyback wi-fi for free with no minutes for web usage) for $115, 1300 minutes, txt = .3 minutes each and 1 year of service. I do not use my cell much so it works for me.

[Romulox]

14. If you know only one Economics rule, it should be "There's no such thing as a free lunch."

The early termination fee pays for the "free" phone.

[gopiscrap]

17. That's why I have a GoPhone

I pay 45.00 a month for unlimited data, text, Long Distance and Local caling, pictures and internet surfing...If I dont like it, all I have to do is wait out the month and then drop it with out a fee!

[Gman]

18. Because landline service is dying

And they want to push everyone to cellular. There's much more money to be made in cellular.