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Americans’ perspectives on early termination fees and bill shock
John Horrigan
Ellen Satterwhite
Summary of Findings
The Federal Communications Commission’s new survey of American consumers of broadband 
and cell phone service finds that one in six cell phone users has experienced “bill shock” (i.e., a 
sudden increase in their monthly bill when they have not changed their service plan). Among 
those who have experienced bill shock, few were alerted by carriers that it was coming – before 
or after the bill arrived. Specifically:
· 17% of American adults with a personal cell phone said that at one time their cell phone 
bill increased suddenly from one month to the next, even though they had not changed 
their calling or texting plans.
This translates into approximately 30 million Americans who have at one time had “bill shock” 
on their monthly bill. Overwhelmingly, these Americans were not contacted by their carriers 
about the change in their bill. Specifically, among those who experienced bill shock:
· 88% said their cell phone company did not contact them after their bill suddenly 
increased.
· 84% said their cell carrier did not contact them when they were about to exceed their 
allowed minutes, text messages, or data downloads.
The survey also queried consumers about early termination fees (ETFs) for cell phone and home 
broadband service. The results showed that significant numbers of consumers of both services 
would either be subject to ETFs or were not sure whether they would be. Among those who 
stated affirmatively that they would incur a fee if they tried to terminate service, many did not 
know what the fee would be. 
· For those with personal cell phones, 54% said they would have to pay an ETF and 18% 
did not know whether they would have to pay a fee.
· For home broadband customers, 21% said they would have to pay an ETF and 38% did 
not know if they would have to pay a fee.
Among personal cell phone users who said they were subject to an ETF, 47% did not know what 
the amount of the fee would be. For home broadband users who said they would have to pay an 
ETF, 64% did not know the amount of the fee.
The survey also asked questions of cell phone users about their attitudes toward several attributes 
of their cell phone service. 
· 58% said they were very satisfied with how many places they can get a good signal, and 
another 29% said they were somewhat satisfied with this dimension of their service. 
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I. Bill shock for cell phone users
Some 83% of adult Americans have a cell phone and 80% of adults have a personal cell phone 
(i.e., one for which their employer does not pay the bill). Among those with a personal cell 
phone, 17% say that at one time their cell phone bill has increased suddenly from one month to 
the next – even when they have not changed their calling or texting plan. This translates into 
approximately 30 million Americans who have experienced bill shock.
Perhaps unsurprisingly, a sudden bill increase is a bit more likely to occur for young people and 
parents with minor children living at home. One fifth (20%) of those between the ages of 18 and 
29 have experienced a sudden increase in their cell phone bill and a similar number (21%) of 
those between the ages of 30 and 49 say this. For parents with minor children at home, 21% say 
they have had a sudden increase in their monthly cell phone bill (see Exhibit 1). 
Exhibit 1: 
Consumers who have experienced 
sudden bill increases by selected 
demographics
(% of cell phone users)
Total 17%
Male 17
Female 17
18-29 20
30-49 21
50-64 15
65+ 7
White, non-Hispanic 16
Black, non-Hispanic 20
Hispanic 20
Less than $30,000 16
$30,000-$49,999 20
$50,000-$74,999 17
$75,000 or more 19
Parents with children under 18 21
Source: Federal Communications Commission, Wired and 
Wireless Internet Survey of 3,005 U.S. adults, April-May 
2010. Based on those who have a personal cell phone 
(n=2,463).
Among cell phone users who have seen a sudden increase in their bills, this is what they said 
when asked to estimate the size of the most recent increase:
· 36% say the increase was between $1 and $24.
· 15% say the increase was between $25 and $49.
· 10% say the increase was between $50 and $74.
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· 4% say the increase was between $75 and $99.
· 23% say the increase exceeded $100.
· 12% could not identify how big the increase was.
Exhibit 2:
36%
$1 to $24
15%
$25 to $49
10%
$50 to $74
4%
$75 to $99
23%
over $100
12%
do not know
Size of Cell Phone Bill Increase
(among those whose bill increased suddenly)
Source: Federal Communications Commission, Wired and 
Wireless Internet Survey of 3,005 U.S. adults, April-May 
2010. Based on those whose cell phone bill increased 
suddenly (n=391).
Most of the time, carriers did not contact those who had (or were about to have) an increase in 
their cell phone bill. Among those who experienced a sudden rise in their cell phone bill:
· 88% say they were not contacted by their cell phone company after their bill suddenly 
increased.
· 84% said they were not contacted when they were about to exceed their limits on minutes 
of use, text messages, or data downloads.  
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II. Early termination fees
Cell phone service
As part of this survey, cell phone users received questions about whether they have to pay a fee 
or penalty if they were to cancel service and if they were aware of how much such a fee would 
be. Among those with a personal cell phone:
· 54% said they would have to pay a fee.
· 28% said they would not have to pay a fee.
· 18% did not know whether they would have to pay a fee.
Young people are particularly likely to say they are subject to ETFs for their cell phone plan. 
Two-thirds (66%) of those between the ages of 18 and 29 say they would have a pay a fee to 
terminate their service. This stands in stark contrast to senior citizens; just 30% of those over age 
65 say they would be subject to an ETF. 
Among the group of personal cell phone users (54%) who said they would be subject to an ETF, 
47% did not know the level. For those who said they would have to pay a fee, 29% said the early 
termination fee would exceed $200, 14% said it would be between $150 and $199, 6% said the 
range was between $100 and $149, 3% said it was between $50 and $99, and 1% said it would 
be $1 to $49. 
Put differently, among those who said they had an ETF and could identify the level – and that is 
28% of all personal cell phone users – most (56%) report that the fee exceeds $200.
ETFs and consumer behavior
Beyond the question of whether they may be subject to ETFs, the survey also explored the extent 
to which people actually faced ETFs when they switched cell phone service. Those with cell 
phones were asked whether they have switched cell phone providers in the past three years, and 
one in five (19%) of cell users said they had switched service providers.
Among this subset of respondents who switched cell phone providers in the prior three years, 
three quarters (74%) said they paid no fees. This is a much higher figure than the share of cell 
users (28%) who say they would be subject to an ETF if they ended service – and significantly 
higher than would be the case if one assumed a portion of the 18% who did not know whether 
they would be subject to an ETF would not be. It is possible that many of those who switched 
cell service in the prior three years waited until they would no longer face ETFs from their 
service provider.
As to the level of the ETFs, here is what those who have switched service in the past three years 
said:
· 74% paid no ETF when they switched.
· 12% paid $200 or more.
· 4% paid between $150 and $199.
· 3% paid between $100 and $149.
· 1% paid between $50 and $99. 
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· 6% did not know or could not remember.
ETFs may also play a role in consumer behavior among those who consider changing their cell 
phone service provider. When asked whether paying an ETF was a factor behind a decision to 
keep service – even though they might have seriously considered switching – a majority (61%) 
of personal cell phone users said the ETF was at least somewhat influential. Specifically, among 
personal cell phone users:
· 43% said paying an ETF was a major reason they kept service with their current carrier.
· 18% said paying an ETF was a minor reason they kept service with their current carrier.
· 34% said it was not a reason behind a decision to say with their current carrier.
· 4% responded that they did not know.
For those who had to pay an ETF, some first learned they would have to pay a fee when they 
contacted the company to terminate service, others when they received their final bill, and many 
knew, from when they first signed up for service, that they would have to pay the fee.
To put this into context, the survey asked personal cell users about other factors that might mean 
they keep their cell phone service, even if they had considered a switch. Other factors clearly 
come into play – the need to get a new cell phone upon a switch, putting down a deposit, or just 
the hassle of ending one contract and starting a new one. Exhibit 3 lays out all the reasons.
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Exhibit 3: 
Reasons consumers would keep current cell phone company
(based on those who have a personal cell phone)
MAJOR 
reason
MINOR 
reason
Not a 
reason
Don't 
know
Paying termination fees to your current cell phone 
company 43% 18% 34% 4%
Paying set-up or installation fees to get new service 43 28 25 4
Putting down a deposit to get a new service 44 23 28 4
Dealing with the hassle of ending one contract and 
starting a new one 39 24 32 5
Having to get a new cell phone 33 26 38 4
Spending considerable time to set up the new service 36 27 32 4
Source: Federal Communications Commission, Wired and Wireless Internet Survey of 3,005 U.S. adults, April-May 2010. 
Based on those who have a personal cell phone (n=2,463).
ETFs and the consumer’s cell phone bill
As noted, many cell phone users do not know if they have to pay an ETF and many, if they are 
aware that an ETF applies, do not know its level. One possible reason for this: consumers’ cell 
phone bill may not be clear enough, to some people at least, so they can acquire and understand 
information about ETFs. When asked to assess how clear the information on their cell phone bill 
is when it comes to ETFs, cell users familiar with the bill (83% of cell-using respondents) said 
the following:
· 36% said the information was very clear.
· 12% said it was somewhat clear.
· 10% said it was not too clear.
· 14% said it was not at all clear.
· 10% said it was not on the bill.
· 7% said they used a prepaid phone.
· 10% said they did not know.
Overall, this comes to 34% of personal cell phone users who are familiar with their bill who say 
information about fees they would have to pay to switch service is not clear. By contrast, few of 
this same group of respondents says this when thinking about how much they pay per month for 
service (5% say such information on the bill is not clear) or how to contact the company with a 
question (also 5%).
Home broadband service
The story for ETFs is somewhat different for home broadband service. Among home broadband 
users:
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· 21% say they would have to pay a fee or penalty if they terminated service to switch to 
another company.
· 41% said they would not have to pay any fee.
· 38% said did not know whether they would have to pay a fee or not.
Younger broadband users are more likely to say they would have to pay an ETF for broadband; 
31% of broadband-using adults under the age of 30 say they would have to pay an ETF if they 
were to switch broadband providers versus 16% of remaining broadband users. Lower income 
broadband users are more likely to say they have an ETF. Some 28% of those living in 
households whose annual income is $30,000 or below say they would have to pay an ETF versus 
17% in households with annual incomes over $75,000 who said this (see Exhibit 4). 
It is worth noting that the pattern of awareness of whether they face an ETF is – when focusing 
on income levels – different for broadband and cell service. Lower income broadband users are 
more likely than wealthier ones to say they face an ETF for broadband. For cell phone service, 
upper income consumers are more likely than lower income ones to say they would face an ETF. 
Among the 21% of home broadband subscribers who are subject to an ETF, nearly two-thirds 
(64%) do not know what their fee would be. For those who would have to pay a fee, 13% say the 
ETF would be more than $200, 14% say it would fall between $100 and $149, 6% said between 
$50 and $99, and 3% said between $1 and $49.
III. Cell phone coverage
The survey also explored consumers’ level of satisfaction with their cell phone signals. When 
asked how satisfied they are with how many places they can get a good signal, 58% of personal 
cell users said they were very satisfied with this and another 29% said they were somewhat
satisfied. This means that, overall, 87% of personal cell phone users are at least somewhat 
satisfied with the coverage of their signal. 
Suburban residents are more likely to say they are very satisfied with their cell phone signal –
61% are very satisfied, compared with 56% of urban cell phone users and 52% of rural cell 
phone users. It is also notable that older cell phone users report higher levels of satisfaction with 
the quality of their signal. Some 61% of cell phone users over the age of 50 are very satisfied 
with their signal while 52% of those between the ages of 18 and 29 say this. It may be that 
younger people, who are more reliant on their cell phone than older users, are more 
discriminating about assessing the quality of their signal.
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Exhibit 4:
Percent of Consumers Facing Early Termination Fees 
(by technology and selected demographics)
Home broadband Cell Service*
Yes Don't Know Yes Don't Know
Total 21% 38% 54% 18%
Male 21 36 54 16
Female 20 41 54 19
18-29 30 36 66 12
30-49 19 37 57 14
50-64 17 43 50 18
65+ 14 35 30 35
White, non-Hispanic 19 39 54 18
Black, non-Hispanic 30 38 47 15
Hispanic 28 28 52 20
less than $30,000 28 37 45 18
$30,000-$49,999 24 34 56 14
$50,000-$74,999 20 40 59 16
$75,000 or more 18 37 62 16
Urban 23 40 53 17
Suburban 21 36 56 17
Rural 15 44 53 19
Northeast 23 40 58 17
Midwest 20 38 50 22
South 21 36 52 18
West 20 40 57 14
Source: Federal Communications Commission, Wired and Wireless Internet Survey of 3,005 U.S. adults, April-
May 2010. Home broadband user percentages based on 1,742 respondents. Columns with asterisk based on 
those who have a personal cell phone (n=2,463). 
About the survey
The FCC’s survey of consumers, conducted by Abt/SRBI and Princeton Survey Research 
Associates, International from April 19 to May 2, 2010, interviewed 3,005 American adults. The 
national random digit dial survey was conducted in English and Spanish and the sample included 
both landline and cell phones. For responses based on those with personal cell phones (2,463 
respondents) the margin of error is plus or minus two percentage points. For responses based on 
home broadband users (1,742 respondents), the margin of error is plus or minus 2.6 percentage 
points. 
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I. Bill Shock
Q2. As I read the following list of things some people have, please tell me if you happen to have each 
one, or not.  Do you have… [INSERT ITEMS IN ORDER]? 
Yes No DK Ref.
a. A landline phone at home 78 22 * 0
b. A cell phone..or a Blackberry or i-
Phone or other device that is also a cell 
phone 83 17 * *
Q52. Has your cell phone bill ever increased suddenly, from one month to the next, even if you did not 
change the calling or texting plan for your phone?
Based on those who have a personal cell phone (n=2463)
17 Yes
75 No
7 (DO NOT READ) Don’t know
* (DO NOT READ) Refused
Q53. Do you happen to remember how big the most recent increase was?  Was it…(READ)
Based on those whose cell phone bill increased suddenly (n=391)
36 Yes, $1 to $24
15 Yes, $25 to $49
10 Yes, $50 to $74
4 Yes, $75 to $99
23 Yes, $100 or more
12 No, don’t know how much fees would be
* (DO NOT READ) Refused
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Q54. Now please tell me if your cell phone company has ever contacted you… [INSERT; READ 
AND ROTATE]?  Have they ever contacted you…[INSERT NEXT ITEM]?
Based on those whose cell phone bill increased suddenly (n=391)
Yes No DK Ref.
a. When you were about to exceed your 
allowed minutes, text messages, or data 
downloads 14 84 2 0
b. After your bill suddenly increased 10 88 1 0
II. Early Termination Fees
Cell phone service
Q49. Do you happen to know if you would have to pay your cell phone company a termination fee or 
penalty if you cancelled your current cell phone service? 
Based on those who have a personal cell phone (n=2463)
54 Yes, would have to pay fees
28 No, would not have to pay fees
18 (DO NOT READ) Don’t know
* (DO NOT READ) Refused
Q50. Do you know how much those fees would be? [If YES, ASK: About how much would the 
termination fees be?] [DO NOT READ CATEGORIES; PRECODED OPEN-END] 
Based on those who say “yes” in Q49 that they would have to pay a fee  (n=1240)
1 Yes, $1 to $49
3 Yes, $50 to $99
6 Yes, $100 to $149
14 Yes, $150 to $199
29 Yes, $200 or more
47 No, don’t know how much fees would be
* (DO NOT READ) Refused
ETFs and consumer behavior
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Q47. Now I would like to ask you specifically about the bills you receive for YOUR CELL PHONE 
SERVICE.  (First,/Next,) How clear is…[INSERT; READ AND RANDOMIZE] on your bill?
READ FOR FIRST ITEM, THEN AS NECESSARY: Is this information very clear, somewhat 
clear, not too clear or not at all clear on your cell phone bills? 
Based on those familiar with cell phone bill (n=2022)
Very Some
Not 
too
Not at 
all
Not on
bill
Pre-
paid DK Ref.
a. How much you are paying 
for cell phone service 71 16 3 1 1 6 2 *
b. How to contact the company 
if  you have a question 
about the bill or service 78 10 2 2 1 5 2 *
c. Any fees you would have to 
pay if you switched to 
another cell phone company 36 12 10 14 10 7 10 *
Q55. Now thinking about the past three years, have you switched your cell phone service from one 
company to another? 
Based on those who have a personal cell phone (n=2463)
19 Yes
80 No
1 (DO NOT READ) Don’t know
* (DO NOT READ) Refused
Q59. The last time you switched cell phone companies, did you [INSERT; READ AND 
RANDOMIZE]?
Based on form B respondents who switched cell phone companies in past 3 years (n=232)
Yes No DK Ref.
a. Have to pay a termination fee to the old 
company 22 74 4 0
Q60. What was the total of the termination fees you had to pay your old cell phone company to end 
service? [IF NECESSARY: READ ANSWER CATEGORIES]
Based on form B respondents who switched cell phone companies in past 3 years (n=232)
12
74 No fees
0 Yes, $1 to $49
1 Yes, $50 to $99
3 Yes, $100 to $149
4 Yes, $150 to $199
12 Yes, $200 or more
6 Do not know or remember how much fees were
0 (DO NOT READ) Refused
Q51. What are some reasons you would KEEP your current cell phone company, even though you 
might have seriously considered switching companies? Would [INSERT ITEM AND 
RANDOMIZE] be a major reason, a minor reason, or not a reason at all for keeping your current 
cell phone company? How about [INSERT NEXT ITEM]?
[READ IF NECESSARY: Was this a major reason, a minor reason, or not a reason you would 
keep your current cell phone company?]
Based on those who have a personal cell phone (n=2463)
Major Minor Not DK Ref.
a. Paying termination fees to your current cell 
phone company 43 18 34 4 *
b. Paying set-up or installation fees to get new 
service 43 28 25 4 *
c. Putting down a deposit to get a new service 44 23 28 4 *
d. Dealing with the hassle of ending one 
contract and starting a new one 39 24 32 5 1
e. Having to get a new cell phone 33 26 38 4 *
f. Spending considerable time to set up the new 
service 36 27 32 4 *
Q61. When did you learn you would have to pay these fees… when you first signed up for the cell 
phone service, when you contacted the company to say you would terminate service or when you 
received the bill? 
Based on form B respondents who switched cell phone companies in past 3 years and had to 
pay termination fee (n=45)
33 When you first signed up for the service
40 When you contacted the company to terminate
25 When you received the bill
0 Other
3 (DO NOT READ) Don’t know
0 (DO NOT READ) Refused
Home broadband service*
  
* Toplines reported in this section may not match text as these are for ALL home internet users, while the text 
reports results for those respondents with broadband connections at home.
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Q25. Do you happen to know if you would have to pay your current internet company any termination 
fees or penalties if you terminated the service and switched to another company? 
Based on those who have broadband access at home (n=1742)
21 Yes, would have to pay fees
41 No, would not have to pay fees
38 (DO NOT READ) Don’t know
* (DO NOT READ) Refused
Q26. Do you know how much those fees would be? [IF YES, ASK: About how much would the 
termination fees be?] [DO NOT READ CATEGORIES; PRECODED OPEN-END] 
Based on those who answered “yes” to Q25 that they would have to pay a fee (n=321)
3 Yes, $1 to $49
6 Yes, $50 to $99
14 Yes, $100 to $199
13 Yes, $200 or more
64 No, don’t know how much fees would be
* (DO NOT READ) Refused
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III. Cell phone coverage
Q46. Now I would like to talk about how satisfied you are with various aspects of your cell phone 
service.  (First/Next,) how satisfied are you [INSERT IN ORDER] … 
[READ FOR FIRST ITEM, THEN AS NECESSARY: very satisfied, somewhat satisfied, not 
too satisfied or not at all satisfied]?
Based on those who have a personal cell phone (n=2463)
Very Some
Not 
too
Not at
all
Doesn’t
apply DK Ref.
e. With how many places you can get a 
good signals 58 29 8 4 1 1 *