UPDATE 2-U.S. FCC asks Verizon Wireless to explain fees

* Letter part of broader consumer billing inquiry

* Verizon Wireless given until Dec 17 to reply

* Democratic senators offer bill to limit fees (Adds Verizon comment, background)

WASHINGTON, Dec 4 (Reuters) - The U.S. Federal Communications Commission on Friday sent a letter to Verizon Wireless seeking information on why it is charging customers higher early-termination fees for some contracts.

The letter is part of a broader consumer protection inquiry launched in August into the disclosure of fees and charges associated with advertisements, point-of-sale and bundling.

In the letter to Verizon Wireless, the FCC cited news reports that Verizon Wireless was charging $350 for early termination on some smartphones.

For example, it asked about information involving early termination fees, including a $120 fee for ending a two-year contract after 23 months for customers with an advance handset.

The letter also raised questions about whether consumers are being charged $1.99 for minimal, inadvertent use of Verizon's Mobile Web service, and what notice is being provided to those consumers.

"In light of the Commission's ongoing interest in the issues associated with ETFs and its pending proceeding regarding disclosure of billing information to consumers, we seek a more complete understanding of these practices," the FCC said in the letter.

A Verizon Wireless spokesman, Jeffrey Nelson, said customers can choose to avoid paying an early termination fee by buying a mobile phone at full price.

"Or you can buy a device at a discount with a 1- or 2-year contract," Nelson said. "If you stay with your contract, you don't pay a fee at all."

Nelson said the company has heard from "very few customers" who accidentally access their Web browsers and immediately credit them $1.99 per month when they do.

On Thursday, four Democratic senators introduced a measure that would set limits on such fees, pro-rate them and clearly notify customers about the fee at the time of purchase and during the life of the contract.

"Forcing consumers to pay outrageous fees bearing little to no relation to the cost of their handset devices is anti-consumer and anti-competitive," Senator Amy Klobuchar said in a statement.

The letter was signed by Ruth Milkman, chief of the FCC Wireless Telecommunications Bureau, and Mark Stone, acting chief of the Consumer and Governmental Affairs Bureau.

Verizon Wireless, a joint venture between Verizon Communications Inc (VZ.N) and Vodafone Group Plc (VOD.L), was given until Dec. 17 to reply to the FCC. (Reporting by John Poirier, editing by Matthew Lewis and Carol Bishopric) ((john.poirier@thomsonreuters.com; + 1 202 898 8399; Reuters Messaging: john.poirier.reuters.com@reuters.net))