Senator Targeting Verizon's New ETF Policy

Exactly. Besides, Verizon isn't doing anything to existing contracts, just new ones. They even held off, so that people who get the Droid this week don't get the new ETF.

Yeah I just want the iphone with verizon, who cares its not the best phone anymore lol i just want the apps for now

Then buy an ipod and spare yourself the two year contract.

Here, here!

Revenue down 30 percent from churn to AT&T for the iphone and saturated market creating inadequate subscriber sign ons.

Verizon's Plan?

1)Build Hype on new devices.
2)Keep the price low.
3)Draw people in for the new devices.
4)The hype builds through social interaction.(E.G. Wow. I like it where did you get it?)
5)The new subs buy and end up with new ETF.
6) Subs locked in
7)This cuts churn that Verizon has had to AT&T.

correct...how is this wrong?? it's a legally biding document, if you want to break that agreement, you pay!!

Exactly. Unless MSRP is going to change drastically we should be ok with ETFs and thankful for susidized pricing.

Subsidized pricing! Blech!

you don't have to like subsidies, but realistically any of us have the option to buy our mobile device for the retail price with no commitment. the majority wants subsidized pricing even if they don't know what that is, actually the majority wants everything for free. 🙄 but either way currently we have multiple options. and if the carrier thats offering the phone for the subsidized price wants to raise the etf to recoup some of their losses, for consumers who drop their contracts a month into service, thats their choice to make, its a business not a goodwill handout.

i blame the cellular companies for screwing themselves with the whole ETF thing....they should of just done flat fees like metro and those other companies and charge full price on phones.... manufacturers would then compete with their phones and we wouldnt have these exclusives like iphone and droid and everyone would have open source phones that can be taken anywhere and actually pay what they get....and NOT complain about their phones.....

True. I was selling GTE ten years ago and their Startac was $500. Then Suncom sold one for $50. The beginning of the end. That is what happens. These companies cut one another's throats and then the last man standing is wondering why he is buying handsets from LG for $400 and giving them away. If this Senator has her way and ETFs are outlawed ALL the carriers will unilaterally cease to subsidize handsets. That is what I truly want to see anyway so I hope she is successful. Then the only people buying new handsets will be those who can afford to buy them outright.

Nobody said OUTLAWED, you said it. They are just tired of the greed of the carriers. Nobody in congress right now was arguing a $175 or $200 etf. VZW just got greedy, and to be honest, I don't think AT&T is going to be too far behind.

AT&T is never too far behind Verizon. So you are probably right. Sometimes I think that they are twins.

Azeron said:
AT&T is never too far behind Verizon. So you are probably right. Sometimes I think that they are twins.

Ever notice after they take over another mobile company, they end up selling off divested properties to each other. Rarely anybody else gets a plate at the table.

Whats greedy about covering your butt?

Verizon buys the Motorola droid for $550(after quantity discounts) then turns around and sells it to customers for $199. thats a discount of $350- a customer goes on Verizon's website and buys 5 of them on a 2 year contract. the customer recieves the phones and cancels service. the customer is out a total of $374. Then the customer goes on ebay and lists each of the 5 droids he weazled out of Verizon for a "Buy it Now" $749.99. lets see $749.99-$374= a total profit of $375.99 per DROID!!!!

Why shouldn't Verizon raise the cost of the their ETF? the way I see it, it was either a choice of raising the ETF (for high-end devices only) or raising monthly rates on every single customer to cover the cost ...
(continues)

And those guys who for whatever reason paid $750 for the phone, go right back to vzw and use those phones on their system. Of course thats the speculation that they get $750 for the phone.

I would love to see this cause the end of ETFs and subsidizing. The outrage of people who all of a sudden had to pay full price for handsets would be AMAZING. Then it would somehow be litigation forcing companies to subsidize that she was pushing.

These government officials need to get focused on things that really matter and stop this BS nosing in on business. VZW isn't the only carrier and everyone is welcome to choose a differnt company if they dont like the terms of the contract. Nobody is forcing them to sign the contract and agree to it's terms.

Whatever happened to Laissez-Faire?