early termination charge (ETC)

A charge that is applied when canceling a contract before the end of the contract term. When canceling a contract, different ETCs can be applied based on when the contract is canceled within the term. An ETC schedule with different charges can be configured for segments of the contract within and outside the commitment period. For example, for a 12-month contract with a commitment period of six months, the ETC schedule can specify that the ETC charge is $10 if canceled within the first three months of the contract start, $8 if canceled after three months and up to 6 months, and no ETC if canceled after six months of the contract start.