Cellswapper, a Web site that allows people to transfer cell-phone contracts to other people, launched last month, and is looking to raise a first round of capital.
Today it launched in Canada.
Nearly half of all US cellular phone customers would switch, or consider switching, their current service carrier if they did not have to pay an early termination penalty of up to $240, the company says, citing the Public Interest Research Group.
Cellswapper transfers the remainder of a contract from someone who wants to drop it to another interested party. The party taking over the contract gets the service without the activation fee.
Here’s a video of how it works, or click on video below.
“Hundreds” of plans and contracts have been posted and transferred to interested buyers, the company says. The average time from plan posting to transfer request is three days, and there are 288 contracts available on the network.
The Apple iPhone, to be served exclusively by Cingular, may push people to want to try Cellswapper, the company said.
The company has five people, and has seed backing from individuals.