AT&T Eases Its Contract Regs, Fees

Wireless giant AT&T is following Verizon Wireless in loosening restrictions on customers who leave or change their calling plans. Flat early termination fees will be pro-rated, and plan alterations won't result in contract renewals. The move will put pressure on beleaguered No. 3 provider Sprint, writes the Wall Street Journal.

Sprint has lost more than 1 million customers this year, due to difficulties integrating its Nextel network, and expects to lose another 337,000 contract-bound customers in the third quarter. AT&T's changes won’t take effect until early 2008 and the total amount of the reduction is still undetermined, according the company. (More AT stories.)