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Verizon Responds to FCC On ETFs and Data Fees

Article Comments  100+  

Dec 18, 2009, 2:46 PM   by Eric M. Zeman   @phonescooper

Verizon Wireless has filed a lengthy response to the Federal Communications Commission's inquiry into Verizon's recent changes to its ETF policy. The FCC asked Verizon to explain the reasoning behind the increase in early termination fees from $175 to $350 for what Verizon terms "advanced devices." Verizon claims that this increased ETF helps the company to offer more capable handsets at lower upfront costs, and to reduce its losses if/when a customer chooses to leave their contract early. Verizon insists that it still looses money on customers who choose to cancel their contracts during the 23rd month, during which time they would still owe $120 ETF under these new rules. Verizon believes that its advertising and marketing collateral are sufficient to make sure customers are informed of these policies. Verizon also responded to the FCC's questions about minimum data usage fees. Contrary to what customers report, Verizon claims that simply opening the mobile browser on a phone does not incur any charges. Charges are only levied against users who navigate away from the Verizon Wireless home page and access other information, applications or services. Data is charged at $1.99 per megabyte.

from Verizon Wireless



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This forum is closed.


Dec 18, 2009, 6:22 PM

Verizon is lying!!!!!!

you big fat lier verizon! The 1.99 charge can occur when you accidentally opening anything mobile web. if you don't change your short cuts it's easy to do. Hell my gzone would occur data charger when i powered if off and back on. i would see the data icon when it was powering on doing whatever and sure enough 1.99...maybe it just does that with ptt phones. i have to always call those blood suckers and have it reversed. big waste of time. and they're always trying to stick it to you, they claimed one time that the free411 was not FREE. Finally a half hour later they said oh our bad. Verizon blows chunks sometimes.
Are you kidding me? Did you ever bother to ask Verizon Wireless why you were getting the $1.99 charge? Chances are you are incurring the charge because of backup assistant. The reason you see sending and receiving arrows is because its connecting to V...
Just switch to Sprint, the customer service is great and they also have the only 4G network is certain cities, I live in Baltimore and my internet is really fast. And they charge nearly half as much as Verizon does to cancel the service. Personally I ...

Dec 18, 2009, 10:00 PM

Sorry...but those numbers don't add up

So here's to hoping the FCC calls VZW out on their sloppy math. VZW reports that its average revenue per customer is around $50 with an average expense per subscriber of around $30--so they're pulling an average profit of $20 per subscriber per month. Even if VZW's average cost of acquisition is $250, that equals a 12 1/2 month break even point. This isn't even taking into consideration that an 'advanced' device customer will be required to have a $29.99 data plan. The bottom line is that advanced device customers are more profitable then average and therefore have an even shorter break even period. There is no way VZW maintains its 'industry leading profitability' by following a business model that allows it to potentially lose money in the...
Sneaky wording and lawyers. That's where there money is going to also Shocked
Verizon is a very well run company. They are a for profit business, not a welfare provider.

There are plenty of expenses that go toward running the business that you have not taken into consideration such as network upgrades, personnel for tech, cu...
Yea they pay extra for data

but every one has to go back and pay Blackberry for the BIS crap.

So the 29 bucks has 17 of it going right back out to blackberry PER DEVICE

Not to mention how FREAKEN expensive the actual phones are.

Its VERY...
We should hope that the FCC does their homework to the fullest extent or Verizon will prevail. Every Nook and Cranny needs to be looked at. The carriers(mainly Verizon and AT&T), did not get this big by breaking even(or little bit above). And does any...
That 50/30 number includes data take rate in it, so you can't add that to a plan.

Yes, those lines with data will make up the cost of their devices sooner, but say that is the primary line on the account and they have 4 other lines sharing the minu...
If you dont like it....take your business elsewhere...there is more than one carrier out there.

The only reason for this increase was to prevent certain fools from taking advantage of a buy one get one offer just to cancel at $175 and sell on ebay ...

Dec 18, 2009, 4:17 PM

Verizon said if a customer cancel at the 23rd month...

They will lose money. what at joke. Does anybody believe that?
I believe they would prefer to have customers rather than collect ETFs. A better question is who in their right mind would cancel during the last month when they could drop to a $39.99 plan at worst for the last month?
They may lose money in the 23rd month for a customer disconnecting a $9.99 add a line w/ nothing on it--which is a total straw man because we're talking about 'advanced devices' that require at least a $29.99 data plan and more than likely have some k...
Cellular companies generally don't start making money on customers until they are past their first year. With the amount of money that goes into a new customer (discounting handsets they've paid full price for, advertising, buying new numbers from the...
for the data alone 23 months would come to 689.77 I dont believe verizon or any other company for the matter spends anywhere near that amount for the phones. they may charge their own cooperate stores and agents this much but when they buy them from ...
When we were given the math in training.

When a Customer signs up for our unlimited plan and uses the customer average for mins and recived a free phone at activation

If a customer paid their bill on time Every time and NEVER came back in th...

Dec 18, 2009, 10:01 PM

They Loose Money Primary Because ....

Rolling Eyes They advertise everywhere and anywhere. They spend alot of money on also store upgrades and collateral for the store,There is a lot of corporate waste internally at Verizon. They don't loose money after 1 year. They are using a data model meaning if someone just gets the BARE minimum and have no data than they would say they loose money cause of that empty potential incoming money.
Their 'loose' spending habits cause them to 'lose' money.
That's why they "loose" money?

Dec 19, 2009, 12:10 AM

Eliminate Subsidies, Prepay for your service

This whole industry needs massive reforms. There is way too much lack of transparency in both billing and handset costs. Its not secret that Telecoms are businesses that want to maximize profits[ for themselves/shareholders]. To be fair, the average US consumer is used to having their device subsidized to where is 'appears' to be free. So its hard to convince somebody to pay 'full value' when they have never done that well ... since mobile phones first became popular here about 1o yrs ago. Unfortunately, the average consumer has no idea of how much their mobile device is worth. They think that 199 is a good price for the iphone or whatever and have no idea how much they are actually paying for over the life of a 2yr contract. For example, th...
They already do smart guy.

You can get any Verizon Wireless or AT&T plan with or without an agreement. 100% month to month.

Talk about uneducated consumers. You post a rant and don't even know your demand has already been satisfied. Customer ...
People will pay per month what they pay for phone service.

IF we charged 120 dollars for lg 300s

eventually the industry would walk its way back up to around were it is right now.

How much do Eurpean phone companies charge per month?

With Verizon you can purchase ANY device (even a DROID) at retail price or provide your own and activate it with NO contract on a month to month plan and pay the EXACT price per month as though you were a contractual customer.

$149.99/Mth = Unlimi...

Dec 19, 2009, 10:04 AM


The extra $40+ a month they are overcharging their customers to have the "expensive" devices is more than enough money to cover the cost of the phones. It doesn't look like Verizon is losing too much money to me... Next excuse please.
LOL It is very easy to spend money out of someone else's pocket. What $40? The Email and Web plan is $29.99 and I question how much goes into the carrier's "pocket".

Dec 18, 2009, 3:34 PM

It's about time...

ETFs were too low anyway. Carriers should just charge a customer the retail (unsubsidized) price of a phone if they leave their contract early. Even $350 is too low in some cases. Who can't keep a 2 year commitment anyway besides gadget junkies who have to have the newest thing with the latest features?
Yea, for example some uber smartphones break $600 wholesale, and thanks to AT&T, they have to sell $199 after rebate on a 2-year. $600-300=$300 and that doesn't take into account the rebate, which widens the gap to $400. A $175 ETF does not make up fo...

Dec 18, 2009, 3:51 PM

The Carriers should go 1 step further

Carrier pricing should be based on the local demographics they are servicing. Hollywood California should have both higher MRC's and phone pricing while Detroit should have lower MRC's because of the lower wages earned. The amount you pay is based on both the address your bill goes to and the address your phone number comes out of.

A guy that wants to pretend he's got a second house based out of Aspen CO, but really lives in St. Louis pays 2-3 times as much as if he would have gotten his number out of St. Louis.
If this was the case, then I think 300 Million people would move to Detroit over night.
What! that is a stupid idea...for so many reasons. There is no way in hell they would ever do it anyway. I cant even get they to stop charging my for 3G data when I do not live within 100 miles of where it is being offered.
I live in rural WI, and even I would disagree with this. What a freaking socialistic point of view!
LOL Freaking A, hahahaha

I completely agree!! Here's why: I would buy a phone in Middle-of-nowhere Nebraska and then sell it in orange county, California. I'd make a killing. I could make up the gas money on like 10 HTC Hero's and put my kids thro...
murmermer said:
Carrier pricing should be based on the local demographics they are servicing. Hollywood California should have both higher MRC's and phone pricing while Detroit should have lower MRC's because of the lower wages ear
flip mode

Dec 19, 2009, 12:03 AM


Will Smith remix - ♪♫Here come the crooks in better hide your wallets!♪♫ Laughing

Dec 18, 2009, 10:05 PM

Looses or loses...

Verizon looses money or *loses money? for your answer

That's probably because they're so full of cacapoopoo.

Dec 18, 2009, 11:12 PM

Now THAT... a bunch of crap. Verizon DOES charge you $1.99 if you accidentally screw up. You DO NOT have to navigate away.

I know because it happened to me a few times before I got wise and remapped my keys.
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