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Sprint Announces New Customer-Friendly Early Termination Policy

New Policy is Addition to Sprint’s Growing List of Initiatives Designed to Improve the Customer Experience

Sprint (NYSE:S) today announced details of its new customer-friendly pro-rated early termination fee (ETF) policy, effective November 2, 2008. Under the new policy, Sprint’s ETF of $200 will decrease by $10 increments per month beginning in month six of a wireless customer’s contract. Nine months later (the 15th month of the contract), Sprint customers have the lowest pro-rated ETF fee in the industry of $100. What’s more, the ETF could drop as low as $50 before a customer’s contract term expires.

The pro-rated ETF policy applies to all new service agreements beginning on or after November 2, 2008, regardless of whether you are a new customer with a new service agreement or an existing customer who has renewed your service agreement. It does not apply to service agreements entered into prior to November 2, 2008.

“This policy gives customers additional flexibility, as every month of service a customer completes after month six, the amount of their ETF is reduced,” said Will Souder, vice president for Sprint operations and business planning. “We are giving wireless consumers more reasons to choose and stay with Sprint by providing the best customer experience in the industry through customer-friendly policies, simplified and industry-leading pricing such as Simply Everything, and the Now Network, which gives customers exceptional communication services in an instant.”

In addition to the new policy, Sprint will continue its policy of giving customers 30 days to try Sprint service. With the Right Plan Promise, if a customer is not completely satisfied with Sprint, his or her service, phone or network coverage, the customer can simply return the undamaged phone and deactivate service within the 30 days. Sprint returns the customer’s activation fees and waives the early termination fees, and customers are only responsible for charges based on their actual usage. The return policy varies slightly for existing customers. Visit www.sprint.com/returns for specific details.

Today’s announcement is one in a series of new or recently launched initiatives and programs designed to improve the customer experience. They include:

  • Ready Now – Trained and certified Sprint retail store associates work one-on-one with customers to personalize phones, set up features and demonstrate how phones work — before customers leave the store. Customers can visit www.sprint.com/readynow for more information or to schedule an appointment.
  • Welcome Call Expansion — Sprint has expanded its welcome call program which initially launched last year. Now, not only new customers will receive a welcome call from Sprint to educate them on the products and services they have chosen, but existing customers who have recently added a line to their account or upgraded their handset will also receive a call from Sprint when they make these changes to their accounts.
  • Transaction Summary — All customers who conduct certain transactions at a Sprint Retail store will receive a detailed summary which includes information on:
    • Changes to the account
    • Description of their plan
    • Estimated charges for first bill and ongoing monthly charges
    • Casual usage and overage information
    • Self-service options on sprint.com
    • Contact information for Sprint
  • International Chat Support Online — Customers traveling overseas who are unable to use their phones now have another avenue for service and support. They may go directly online at www.sprint.com/international to seek help from technical agents 24/7.
  • Sprint Business Premier — Small and medium-sized business customers receive rewards, and added services and benefits such as anniversary rewards, PremierPoints, PremierCare for Business and special notifications when network coverage is added around their business location. To learn more, visit sprint.com/businesspremier.
  • Right Plan Promise — Launched last year, Sprint customers can make changes to their rate plans without having to renew their contracts.

For more information on Sprint’s early termination fee policy and to view the pro-rated chart please visit www.sprint.com/etf beginning November 2nd.

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