An early termination fee (ETF) is a charge imposed by a service provider when a customer cancels their contract before the end of the agreed-upon term. ETFs are common in the telecommunications industry, where customers who cancel their service before the end of their contract may be charged a fee to cover the provider’s costs of acquiring and activating their service.
There are a number of ways to avoid paying an ETF. One is to negotiate with your service provider. In some cases, providers may be willing to waive the ETF if you agree to sign a new contract or if you have a valid reason for canceling your service, such as moving to a new location.