John Dunbar of the Associated Press is reporting on negotiations between FCC Chairman Kevin Martin and Verizon, initiated at the behest of former Rep. Tom Tauke (R-IA), chief lobbyist for Verizon Wireless. If Verizon wins, Martin would slip a bad excuse of a federal early termination fee regulation into FCC rules, so that Verizon can avoid existing lawsuits under state law arguing that early termination fees are unfair and deceptive efforts to prevent cell phone customers from shopping around. The companies would be required to slightly lower and pro-rate the fees, but not enough to matter. This is an October surprise, in May, and could be scheduled for a vote as early as June 12 down at the FCC.

We issued a report, several years ago, called Locked In A Cell, and also joined AARP, Consumers Union and the National Consumer Law Center in comments to the FCC in its Early Termination Fee docket.