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FCC Proposes ETF Rules

Article Comments  29  

Jun 12, 2008, 3:20 PM   by Eric M. Zeman

During its meeting today, the Federal Communications Commission took formal steps towards creating a government-monitored system for early termination fees. Under the terms of Chairman Kevin Martin's proposal, the amount of the ETF would be related to the actual retail price of the phone. So a $100 phone would have a higher ETF than a $50 phone. He also mandated that ETFs be prorated and reduced over the length of a cell phone contract, and that contracts not be an unreasonable length of time. AT&T and Verizon Wireless already prorate their ETFs. Martin did not offer specifics on what government body would monitor ETFs, nor did he say that any federal program would preempt state governmental rights. He also said that contracts that are extended should not necessarily have their ETFs reinstated. Martin allowed that the current proposal would not prevent class action lawsuits regarding ETFs against certain carriers from moving forward.

Associated Press »

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Globhead

Jun 12, 2008, 10:44 PM

This is insane.

The ETF is a security against the SUBSIDY, not the amount the customer already paid. The FCC is (are we really surprised?) completely insane.

The FCC should not be dealing with this anyway. The FTC is in charge of consumer trade and contracts.
agreed! This is just going to make it more confusing
...
Subsidies are there to take the price of the phone down... which lowers the amount the customer pays. So, either way, it works out to the same as what the FCC said.

And the FCC has a "developing and implementing regulations" department. So are you ...
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willv

Jun 12, 2008, 4:22 PM

great (BS)

the govt has nothing better to do huh? no war on terrorism, no high a$$ gas prices, lets worry about etf's lol.... im sorry thats f***in stupid. go to vzw or att if your worried about etfs...
willv said:
the govt has nothing better to do huh? no war on terrorism, no high a$$ gas prices, lets worry about etf's lol.... im sorry thats f***in stupid. go to vzw or att if your worried about etfs...


I must have...
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krickt

Jun 12, 2008, 4:26 PM

So.....

Am I reading this right? Could it work out that someone with a really expensive phone (say a Razr2 or High End Blackberry) could potentially have a higher ETF than we already charge?

Plus, in CDMA land, when do we ever, (in the last 4 years) have a $50 phone (full price of course) or even a $100 phone. This could end up biting both the FCC and the customer in the butt more than they already are!

Bears watching....
that's what happens when you involve the government and don't leave this to the market. the companies that ask for regulations like these to be protected from consumer lawsuits end up winning.

you heard it here first ... customers will end up payi...
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Well... Sprints too.

Look at the prepaids:

http://www.verizonwireless.com/b2c/store/controller? ... »

There is 2 $59.99 phones that are camera phones, 1 has bluetooth. Those don't have discounts or anything...
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jskrenes

Jun 13, 2008, 7:32 AM

Let's see if I get this straight

Here's the timeline:

1. Class action lawsuits arise over ETFs
2. Senators (mostly Democrats) propose mandating ETFs
3. ATT and VZW prorate their ETFs
4. FCC starts negotiating with carriers about prorating ETFs with the condition of immunity from lawsuits
5. FCC pulls the immunity clause out and comes up with a system prorated system that is potentially more confusing and more expensive than the current one.

And this is what we call government efficiency. Not to hijack the thread, but for those of you who want state-funded healthcare, are you sure you want these people running the show?

Here's what's going to happen if this goes through: prices will go up, marginally, but they will. The cost of the phone and activation and upg...
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jskrenes said:

And this is what we call government efficiency. Not to hijack the thread, but for those of you who want state-funded healthcare, are you sure you want these people running the show?



The new ral...
(continues)
😁 i agree
 
 
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