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Verizon Responds to FCC About $350 Early Termination Fee

caution_tape Verizon responded to the FCC’s questions over the weekend and it really makes me wonder what they are thinking. Their justification is that “Advanced Devices” cost them more so they need the doubled $350 ETF. Verizon may have some justification saying that they are subsidizing the devices more since they have a higher cost but in that case the ETF should be almost zero by the end of the contract! Verizon tries to justify the high ETF even in the last month of the contract by saying that they are still losing money during the contract. For example, they claim that 12 months into the contract the @230 ETF is a loss for them…

Verizon also goes on to claim that they need the higher ETF to recoup costs and to keep their network up to snuff since advanced devices are more likely to strain it. If that is the case then why are they only charging people who are leaving… Is the ETF a business model for Verizon where they make tons of money off it that they cannot afford to lose?

Seriously Verizon could have made a better argument in their 77 page response. Especially considering the fact that their revenue for data services rose billions of dollars in the previous quarter…

via FCC via Engadget & Gizmodo

8 total comments on this postSubmit your comment!
  1. They should stop doing BOGOs on smartphones if they really want to cut their losses. Raising the ETF and forcing me to use Bing in the BB browser are just more of Verizon’s typical anti-consumer behavior. The US needs their own WIND Mobile to shake things up.

  2. I am currently speaking with my lawyer about getting out of my contract minus the ETF over the Bing fiasco. It looks like it will work. I suggest everyone follow suit.

    • And how much will it cost to pay for your lawyer? Crazy lawsuits like this is what keeps the cost driving the costs of products and services we buy today higher and higher.

      • The consultation is free.
        I will execute the termination myself. I just want to proceed with confidence when I do. All it will costs is my time to hassle with Verizon over it.
        If they steadfastly refuse and insist on sticking me for $350 my lawyer will send a scare letter for free. If it is going to court for real then I suppose I’ll eat the $350. Not exaclty sure what part of this constitutes crazy, though.

        • What constitutes “crazy” – really, a Bing “fiasco” justifies termination of a contract your signed? Unless I’ve missed something, nothing has materially changed from what VZW had contracted with it’s users. No one wins on these type of cases other than the lawyers who have hours to bill – and that cost is just passed along to the consumer. Stepping down off my soapbox – Happy Holidays and Merry Christmas to all….

  3. I live about 5 minutes from the beautiful Verizon building in Northern Virginia. It is a huge building with secure parking. They have a well-manicured landscape that stretches into the horizon. A man-made lake surrounded by incredible trees and populated by ducks. The picture of serenity and beauty. I believe the ETF goes to the feeding and care of the ducks. Quack!

  4. If anyone things the government is going to step in and do “good by the consumer” on this, you are sadly mistaken. It will become another grandstand situation for the legislature’s who will look like they are trying to stand up for the “little guy”, but in the end we may end up with what our Canadian friends to the north have to deal with: http://www.berryreview.com/2009/04/10/so-you-think-we-have-it-bad-a-look-at-canadian-termination-fees/

    Who do you think benefits from the Canadian program – hint, it’s not the consumer.

  5. Bah…We’d kill for a $350 ECF in Canada.

    Most providers are charging $500 for data devices until Wind Mobile launched here last week.

    Only reason Verizon would be “losing money” even at the last month cancellation is if they counted their chickens before they were hatched and spent what they thought we be revenue on other stuff already…but then, no responsible business would do that 😉

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