Senator Targeting Verizon's New ETF Policy
Dear Senator Klobuchar - Cell Phones don't grow on trees.
What an ignorant move by someone who clearly does not understand the wireless industry. An absurd waste of taxpayers money.
ETF's don't "unfairly" raise penalties. They prevent fraud and people taking advantage of carriers and retailers.
Without ETF's, a consumer could purchase a Motorola Droid for $199, cancel it, pay a term fee of $175 (pre increase; have a total of $375 in the phone and turn around and sell it on Ebay for over $500. The consumer could win/cheat the system...however, the carrier and retailer would lose as the device itself COSTS more than $500.
What doesn't she understand about "Subsidization??" If a consumer doesn't want to be subject to a ETF or 2-year agreement; they have the option to pay a "fair" retail ...
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ETF's don't "unfairly" raise penalties. They prevent fraud and people taking advantage of carriers and retailers.
Without ETF's, a consumer could purchase a Motorola Droid for $199, cancel it, pay a term fee of $175 (pre increase; have a total of $375 in the phone and turn around and sell it on Ebay for over $500. The consumer could win/cheat the system...however, the carrier and retailer would lose as the device itself COSTS more than $500.
What doesn't she understand about "Subsidization??" If a consumer doesn't want to be subject to a ETF or 2-year agreement; they have the option to pay a "fair" retail ...
(continues)
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