AT&T; to lower cancellation fees

AT&T; Inc. said it would begin charging wireless customers less to cancel service depending on how much time remains on their contracts.

Rather than charging a flat $175 to disconnect users, AT&T; will reduce that fee by $5 after each month of service for customers who sign one- and two-year contracts, the company said. The new plan begins May 25.

AT&T; and Sprint Nextel Corp. announced in 2007 that they would reduce termination fees this year. Verizon Wireless made similar changes in 2006.