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Verizon Wireless Confirms $350 ETF for Premium Devices

Article Comments  100+  

Nov 4, 2009, 10:03 PM   by Eric M. Zeman   @phonescooper

Verizon Wireless has confirmed earlier reports that it is increasing its Early Termination Fee for certain devices from $175 to $350. Spokesperson Jeffrey Nelson said in an email to Phone Scoop, "We are raising the ETF for contracts associated with the purchase of an advanced device (i.e., smartphones, PDAs, netbooks) at a reduced price. This change only applies to new contracts beginning Nov. 15, and only when the customer ends serivce before the term is up. The ETF will be $350 and will decline by $10 a month. Our ETF for all other devices remains at $175." Verizon Wireless believes this change gives customers another choice when it comes to how they purchase wireless devices and services.

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Comments

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This forum is closed.

coldsmoke

Nov 5, 2009, 12:36 AM

Verizon Blows

Need I say more? They're out of their freakin minds.
So.. for the less than 5% of customers who terminate their contracts early, (the only ones effected by this) this makes verizon blow?

Perhaps if consumers would stop trying to get everything for free so they can make a profit, such changes wouldn'...
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coldsmoke said:
Need I say more? They're out of their freakin minds.


Spoken like a fool who has absolutely no idea what he's talking about.

Verizon, like any other carrier, is doing this to protect their investm...
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that Verizon has gotten too big for their britches and has long since copped the attitude of "We're The Biggest and The Best, So If You Don't Like It, GO F**K YOURSELF".

No one should be forced to pay such an astonishingly outrageous cancellation f...
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BBuser4l

Nov 5, 2009, 1:40 AM

Okay, then....

Does this mean that other companies will do it, too?
...if Verizon gets away with it withou too many customer defections...bet your azz. It's a churn buster.
...
but we won't "know" anything until they announce it.

It seems to be the trend that changes like this are adopted almost universally though (sms increase, required data plans, prorated etf, etc)

There is a chance it won't, but companies would be ...
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getoutofmystore

Nov 4, 2009, 10:18 PM

Is Verizon bleeding prime customers?

thats what it seems like
Pretty much yes.
...
Problem is that nobody can make up their damn mind as to what type of phone they want. This is why people whine all the time about "why do we have to have a data plan" with a smart phone. STUPID. People jump on band wagons because everyone else is doi...
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You must have Verizon confused with another CDMA carrier who shall remain nameless which has the highest churn in the industry and the worst customer service
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Slammer

Nov 5, 2009, 8:11 AM

Lies and Deception!

Can anyone answer how a 350 dollar ETF can give me more choices? Confused

These carriers have fed off ignorance for way too long.

It is funny how this starts a week after the self-fabricated hype of the Droid and with a slew of other VZW devices coming out. I'm not dissing on VZW only. This seems all too familiar in the wireless world. Nobody knows how to keep clientele, so they lock them in.

This is why I hate exclusivity. It does not implement innovation. It only triggers greed, lies and deceit.
I personally don't see anything wrong with what Verizon is doing. What you people don't realize is that Verizon subsidizes about $300 of the price of a Smartphone, and it takes about 9-11 months of service on average after an equipment subsidy for the...
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VZW_insider

Nov 5, 2009, 12:17 PM

Companies have a right to protect their interest

I really don't get how so many people can really believe that this is simply a "get rich" scheme for Verizon Wireless. People!! It's a business. You want to know why they are bumping the ETF for "ADVANCED DEVICES ONLY" (just want to make sure there's no confusion on that).

Here's a prime example
- In my area recently, a businesss setup over 50 new lines of service all with advanced devices taking advantage of instant rebates and bogo deals. Two weeks later, all the lines were deactivated and ETF's paid out. If on a generous side you assume Verizon pays $400 per advanced device that was sold (since retail is usually $520 or higher), and the customer payed an average of $50 (also a generous assumption) per handset plus the ETF of $175, th...
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I WILL!!!

Forget the NO ETF or $10 Unlimited Plan. If they guarantee 100% 3G I'm there man! Very Happy
Setting up and maintaing a network has nothing to do with etf fee's nor should it, it has to do something with the cost of the phone. ETF fee's should have nothing to do with infrastructure logistics, customer service deals with that. You like the s...
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VZW_insider said:
I really don't get how so many people can really believe that this is simply a "get rich" scheme for Verizon Wireless. People!! It's a business. You want to know why they are bumping the ETF for "ADVANCED DEVICES
...
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JeffdaBeat

Nov 4, 2009, 11:01 PM

I don't see a problem...

If there is a larger subsidy then there should be a larger ETF. I say make the ETF the discount of the phone. If it is $150 with a mail in rebate then make the ETF $200.
I cannot wait until consumers have to buy their devices directly from the manufacturers.
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trsprague

Nov 5, 2009, 7:58 AM

These cell companies just don't get it...

There are plenty of contract-free options out there now that are priced very competitively, with good service. Unless you need a high-end smartphone, there are several great phones available too. I have been with Virgin Mobile for two years, and I absolutely love it. I have the X-TC, and while not a smartphone, does everything I need it to do...with no contract!

Wake up cell companies. Get competitive and stop with the fees.
but then you have to buy a phone!! and we americans just won't stand for that!!
these "fees" are only on those high end smartphones.


And if virgin works for you, great. I had it and it was horrible for me (no reception anywhere).

Prepaid services are great in a very narrow market. Past that they're not.
One can purchase any Verizon handset at Full Retail Price with no contract. I hope more people take that route.
I'll quote a great old saying: "A fool and his money are soon parted."
cellfoneluva

Nov 5, 2009, 2:21 AM

Don't want an ETF??

You can always switch to Virgin Mobile or Metro PCS. Laughing Laughing Laughing Laughing
But I guess that would defeat the purpose right? LMAO Laughing Laughing Laughing
No one is twisting their arms. If consumers do not want to sign a contract there is always the Month-to-Month option. Why people believe they have the right to a cheap phone with no contract obligation is beyond me. Something for nothing? No way!
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bluecoyote

Nov 4, 2009, 10:32 PM

That's Okay!

It's not like anyone who wants a 'premium device' exactly shops at the gruel of crappy also-rans Verizon offers to begin with.
AT&T's High Priest throws down the gauntlet! Where is VZW611LA to accept the challenge? Don't start yet! I need popcorn.
...
Everybody is freaking out over the raised ETF. All I have to say is, SO WHAT?!

I don't plan on leaving. And if most people would give VZW a try they may find they are better. I had Verizon for years, tried AT&T in a full 3G covered city, didn't ...
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I have had AT&T and have Verizon and have never had better coverage. And 3G everywhere I go. I know many people who feel the same way.
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bluecoyote said:
It's not like anyone who wants a 'premium device' exactly shops at the gruel of crappy also-rans Verizon offers to begin with.


89 million Verizon subscribers say you're full of crap. And they all sa...
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smittycal

Nov 5, 2009, 12:56 AM

Think about it?

Ok why would Verizon have a higher ETF on smart phones?

These type of phones represent the most risk to the company financially. They subsidize these phones more then others because they want to keep the consumer cost down. But if you choose to break contract before its over then they reserve the right to bill out the ETF to recoop lost revenue on the equipment and the monthly service you agreed to pay when you got the phone at the reduced cost.

If you want to avoid the ETF you can sign up service with NO contract with your own device or you can purchase the phone @ the Full Retail price.

Verizon is also prorating down the ETF 10.00 per month so they are at least considering that you have paid your bill and that they have recouped ...
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oh...speaking about prorated etfs. Seems like we have a lot of Haters on the boards tonight. But, do ask...what major carrier first put in prorated ETFs? ATT? Sprint? Surely they did because Verizon Wireless sticks it to the consumer.
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smittycal said:
Okay, why would Verizon have a higher ETF on smartphones?

These type of phones represent the most risk to the company financially. They subsidize these phones more than others because they want to keep the consu
...
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Azeron

Nov 4, 2009, 10:11 PM

Will Other Carriers Follow Their Lead?

Let's see how long it takes for the other guys to follow their lead...
I predict
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Azeron said:
Let's see how long it takes for the other guys to follow their lead...


Of course they will...it's called protecting your investment.
pookie2531

Nov 5, 2009, 9:34 AM

Others to Follow

I understand why VZW is doing this. Ebay sales are through the roof for people who cancel their account after 30 period has past. AT&T will follow. Why? Because VZW was the first. They don't have to deal with the public lashing that VZW will deal with.
pookie2531 said:
I understand why VZW is doing this. Ebay sales are through the roof for people who cancel their account after 30 period has past. AT&T will follow. Why? Because VZW was the first. They don't have to deal with the p
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nikg

Nov 5, 2009, 3:33 PM

WOOT! Now my used phones will be worth more money!!!

The used cell phone market has been flooded with smartphones and high end feature phones! Why, you ask, it's simple: A bunch of "entrepeneurs" with decent credit were adding lines, getting crazy deals, and cancelling to make a profit by selling the phone on ebay/craigslist. Well, thanks to them, I have seen market prices plummet! Now that the incentive is gone, we won't see people cancelling for no reason other than profit. With less phones on the market, bidding wars ensue, and I get to sell my used phones for what they are actually worth. Very Happy
thickjake

Nov 4, 2009, 10:39 PM

Why is this ok?

can you imagine if AT&T did this first for iphone, Bold, or any other device? (and i think they should)
Verizon fanboy would be all over it. Why is there the double standard?
Verizon Wireless is all about screwing their customers, whether it's comparing their 1XRTT network's coverage to AT&T's HSDPA as an apples-to-oranges comparison, or telling someone an LG Dare is just like an iPhone, or telling someone a Pantech POS is...
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Simple, it is OK because Verizon decided they could push their customer's around and they wouldn't say anything about it- because they have a map for that.
...
actually, most "verizon fanboys" get the idea of a higher etf for highly subsidized phones.
bluecoyote

Nov 5, 2009, 1:14 AM

Explaining the increased ETF: The cycle with Verizon Wireless

1) Another carrier releases an "it" phone. Customers leave Verizon Wireless in droves for it.

2) Verizon Wireless comes up with a crappy knockoff, advertising one or two features the VZW knockoff does better, even if it's something dumb like "allows open development" or "plays VCast."

3) Customers buy it, assuming they got something just as good but without the hype on a better network.

4) By chance use a friend's "it" phone and realize there's absolutely no comparison between the two. But assume that they have better coverage than their friends with the "it" phone, so it's good, right?

5) Realize their phone is garbage, and after the initial hype is really getting horrible reviews and as a platform it's falling exponentially f...
(continues)
Wow. You should really put down the hateraid. It is blinding you.
...
Here's another process:
1. Verizon releases a new "it" phone (storm 2, Droid).
2. In order to boost sales early, they offer some sort of Buy One Get One Free promo.
3. Customer gets two with activation.
4. Customer cancels the new line, eats the E...
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island-guy

Nov 4, 2009, 10:07 PM

What happens to returned smartphones?

Does this pay for the hassle of repacking phones as refurbished? What a chunk of change
refurbished smartphones are typically not sold by any carrier unless it is at end of life.

This etf is to stop the policy where people would set up 1-4 extra lines on their account, then sell the phones on ebay for (near) retail price and cancel th...
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Kyle-BBYM

Nov 4, 2009, 11:19 PM

I bet I can guess

I bet I can guess what Sprint is going to do!

NO TERMINATION FEES...haha Laughing
That would be called "No-contract" I.E Pre-paid and in Sprint's case Virgin Mobile.
 
 
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