Verizon Wireless Confirms $350 ETF for Premium Devices
What happens to returned smartphones?
Does this pay for the hassle of repacking phones as refurbished? What a chunk of change
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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 the lines, pay the ETF and still make a huge profit.
This was costing the company millions per quarter, and artificially inflating churn rates.
Ironically, this practice really became popular with the iphone. I was expecting ATT to be the first to do it, but I guess they can wait a few months now before doing it. Though why you want customers who subscribe simply because they can make a profit when they cancel off of you.. beats me.
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 the lines, pay the ETF and still make a huge profit.
This was costing the company millions per quarter, and artificially inflating churn rates.
Ironically, this practice really became popular with the iphone. I was expecting ATT to be the first to do it, but I guess they can wait a few months now before doing it. Though why you want customers who subscribe simply because they can make a profit when they cancel off of you.. beats me.
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That makes sense seeing as how there are TONS of Iphones on Ebay constantly with "jailbreak' inflating the prices of the phone. Anyone want to take bets on how long before AT&T & Sprint jump on board?
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I'm kinda sad about it to. I wish they could do something like for the first year it is higher, but after that year, you end up where a normal ETF would be, or they adjust the proration so it ends up at $60 one month out instead of 120.
Ideally, I wish contractless/unlocked phones were the norm here because this would drive retail prices down, so if you wanted to sign a contract, you could basically get any phone free.
Ideally, I wish contractless/unlocked phones were the norm here because this would drive retail prices down, so if you wanted to sign a contract, you could basically get any phone free.
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