AT&T customers will no longer have to pay a flat fee to exit their mobile contracts early, nor will they be required to extend their contracts when changing calling plans mid-contract. AT&T made the announcement this morning, billing the changes as part of the company's "more consumer-friendly policies." The calling plan change will take effect in November, with the early-termination fee change taking place in early 2008.

Instead of paying the flat, $175 fee to exit a mobile contract early, AT&T customers will be able to pay a prorated fee depending on the amount of time left in the contract. AT&T declined to offer more details on the fee changes, but said that more details would be available next year when the policy is put in place. It will affect new and renewing wireless customers who sign service agreements with the company.

"AT&T leads the wireless industry in the flexibility, friendliness and fairness of its practices, and the new policies we have announced today are the most recent examples of that leadership," said Paul Roth, president of Sales and Marketing for the company's wireless unit. "Customers have told us they do not like one-size-fits-all approaches. They are right, and that is why we have made these important changes."

AT&T is making the changes in the wake of what appears to be an overall industry reform on consumer policies. Verizon also announced earlier this month that it would no longer force customers to extend their contracts when changing service plans, which went into effect on October 7.

Both companies may also be trying to stay ahead of stay ahead of the Cell Phone Empowerment Act, which was introduced to the Senate last month. The bill mandates prorated early termination fees, the elimination of extra fees that are not required by state and local governments, and require companies to allow customers 30 days to cancel their contracts every time their contracts are extended.

Unsurprisingly, the cellular industry is opposing the bill, arguing that the changes would be harmful to consumers and that the proposed legislation is based on incomplete data. AT&T and Verizon's recent policy changes indicate that they are trying to forestall Congressional action by making some much-needed changes of their own.