Pro-rated ETFs: The new industry standard: Sprint Nextel becomes last of top-tier carriers to modify ETF terms

Sprint Nextel Corp. announced it will pro-rate its early termination fees for customers, the last of the four national wireless carriers to do so.
Sprint Nextel’s move comes on the heels of T-Mobile USA Inc.’s announcement yesterday that it will begin pro-rating ETFs in the first half of 2008. Verizon Wireless started the ETF trend earlier this year and AT&T Mobility followed suit last month.
Sprint Nextel’s ETF pro-rating will begin in 2008, the company said, adding that details will be announced next year.
Sprint Nextel’s ETF news came as part of a number of changes the carrier is making to improve its customer friendliness; the wireless operator has struggled to hang on to its postpaid customers, particularly those using its iDEN network.
Along with the ETF changes, Sprint Nextel said that beginning next week customers will be able to make changes to their rate plans without having to renew their contracts; Sprint Nextel previously allowed customers to make changes only during the first six months of their contract.
Other new features from Sprint Nextel will include a “welcome call,” in which a customer care representative thanks customers for their business and answers any questions. The carrier also said it will offer an “overage courtesy call;” the company said it will monitor new customers’ usage during the first six months of their contract and will notify them the first time they incur “significant excess voice, text or data overage charges.” A customer care representative will recommend a new plan to help customers avoid future overage charges.
The company also said that in early 2008, it plans to add new reward programs for long-time customers. The carrier did not provide details.
“We are introducing programs to reward our customers and show our appreciation for their business,” said Bob Johnson, chief service officer at Sprint Nextel. “Rewarding their loyalty is a first step in gaining their trust.”