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FCC Taking On Verizon's New ETF

Article Comments  81  

Dec 4, 2009, 12:24 PM   by Eric M. Zeman   @phonescooper

The Federal Communication Commission has opened an investigation into the recent change that Verizon Wireless has made to its early termination fee policy. Verizon doubled the fee for premium devices from $175 to $350. Verizon contends that consumers can pay the full retail price and avoid the ETF. The FCC has sent Verizon a letter seeking more information on why. The FCC is also looking into a $1.99 data charge that is appearing on the bills of its subscribers. The FCC queried, "whether consumers are being charged for minimal, inadvertent use of Verizon's Mobile Web service, and what notice is being provided to those consumers."

more info at Wall Street Journal »

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Comments

This forum is closed.

This forum is closed.

JeffdaBeat

Dec 4, 2009, 12:41 PM

Simple solution...

Make the ETF equal to the amount of the total discount of the phone(s). Prorate the ETF accordingly. It's that simple.

I think the stance T-Mobile is taking where there is no contract and pay the price of the phone monthly is also a good solution. An even better one would be to give the customer the ability to set the time frame in which they want to pay off their phone as well.

I honestly see no probably with them raising the ETF especially if they are offering larger discounts.
It is....

new Blackberry = $599 out of pocket, no subsidy.

On sale = $179 (Storm2 for 2yr contract)

...all in all, it's too late, the damage is done. Europe has had no subsidies for ages, to unleash something like that on the US where ever...
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Exactly. Different company, different offers, prices, phones, and so on. The phones is what makes the company unique and different from the other ones. And well of course the service but I think pretty much all of the companies have decent service. If...
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JeffdaBeat said:
Make the ETF equal to the amount of the total discount of the phone(s). Prorate the ETF accordingly. It's that simple.


I'm with you. I just don't see the big deal. Why wasn't the FCC crawling all...
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if i was a CEO for verizon and the FCC keep suing me over ETF's, I would drop ETF's all together. Still subsidise customers phones, still do 2 year contracts, and just say when/if you leave, i will continue to bill you for the remainder of your contra...
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ecycled

Dec 4, 2009, 3:44 PM

1.99 charge

whats the 1.99 charge, any guesses?

Probably a subscription, ppl always complain about those txt to vote subscriptions.
I think that it might have to do with the internet, like when you access the internet it charges you $1.99/mb, I think. Not really sure, but if thats the case well then they should take a look into AT&T because the charge one cent more. It's not just ...
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verizon always manage to add something extra to the end of the bill.

have you guys looked at all the extra stuff they manage to add on?

i used to have verizon and now i don't and when i compare my old verizon bill with my new none verizon bill...
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yeahright

Dec 5, 2009, 2:36 PM

why

hmmm... buy a storm for $100 after rebate get one free.

So $100 for $1000 worth of equipment

Sell second storm on ebay brand new in box for $500 and pay $175 eta.

YEs factor in activation fee and I just made $300 profit. If you don't think people figured this out and where abusing it you are nuts!

In order to keep offering such great deals to honest consumers they had to hike that up to keep the scammers away. It was that or stop offering bogos on the high end devices... but I am guessing those who used to promo wouldn't have liked that to much
1st for a consumer out there.. not an At&t, Tmobile, Sprint or Verizon fanboy

would you rather pay $400 for two high end BB, Droid or whatever and have a $175 cancellation fee

Or Would you rather pay $100 upfront for two devices and have a $375 ...
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okay. i see what you're saying, but how many consumers are actually going to do that? not many. when you factor in how many phones they sell and how many people go and sell them on ebay, its a tiny percenage. they aren't losing enough money there for ...
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glinc

Dec 4, 2009, 12:52 PM

Out Government!

The government should stay out of this crap....every time they step in and regulate stuff, it just takes longer for prices to drop.
I hope they ban ETFs so the carriers can react by ending subsidies. How bad do you really want that phone, junior? You'll be cutting grass for months to pay off that Storm 2. Consumers do not appreciate what these devices are worth. Please end the...
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Yup. I'm pretty sure that it's gonna get pretty ugly around here. So people, head for shelter! Rolling Eyes
Here's the deal- we've given them regulatory freedom and allowed them to amalgamate into these singular companies, which has driven DOWN competition.

Ok, that's fine if you're making toothbrushes. However unlike certain commodities, there are sign...
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The government is protecting the CONSUMER against a GINORMOUS corporation that you and many on Phone Scoop have given your souls over to, and you are all now CORPORATE fanboys and NO LONGER a consumer.
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kabukijoe

Dec 4, 2009, 9:37 PM

Verizon's just trying keep people from porting...

There has been a steadily increasing number of people that are fed up with Verizon's ridiculous prices, and Verizon knows it. And what better way to keep customers from porting out than to scare them with an outrageous ETF.

The whole "cost of phones" excuse is BS because their earnings prove that losing money obviously hasn't been an issue for them thus far.
verizon's churn numbers are among the lowest in the industry.

The subsidy is there so they can offer all phones under 200, and offer bogos without people setting up 4 line family shares to get phones, paying early terms, and making a nice profit by...
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Verizon's had nothing but old-news phones for the past 3 years. I think their customers are starting to get fed up waiting for a decent phone to arrive.
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kabukijoe said:
There has been a steadily increasing number of people that are fed up with Verizon's ridiculous prices, and Verizon knows it. And what better way to keep customers from porting out than to scare them with an outrage
...
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Wait...a carrier doesn't want its customers to port out to another carrier or simply cancel service? REALLY! Your gift for the obvious knows no bounds. OF COURSE that is what it is all about. Now...I know this may be difficult for you, but place y...
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flip mode

Dec 4, 2009, 1:47 PM

shame shame shame...

all these companies are garbage in one way or another. does the government ever really step in and do anything for the people that is good? nope. that's why verizon and the rest are able to play around with prices all they want without any real consequences. same with comcast/at&t (home)
Simple solution. If you don't like the ETF, get the phone for the regular price. It would be different if we lacked the choice, but we don't.
 
 
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