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Verizon Responds to FCC On ETFs and Data Fees

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

stephen5688

Dec 18, 2009, 4:17 PM
They will lose money. what at joke. Does anybody believe that?
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Azeron

Dec 18, 2009, 5:34 PM
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?
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DiamondPro

Dec 18, 2009, 9:33 PM
So I'm curious if you change your plan that does not renew your contract?
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Azeron

Dec 18, 2009, 9:39 PM
No. In the past it did. They ended that shady practice around September 2007.
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Jayshmay

Dec 19, 2009, 1:34 AM
Good! ! !
But doesn't Tmobile extend a contract if somebody want to modify their acct?
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GeeksAreBest

Dec 19, 2009, 9:38 AM
Some companies do. Like Cricket charges if you want to change your priceplan. And depending on the device, Verizon could lose money even in the 23rd month.

I know AT&T as a company pays outright from manufacturers for the devices. The BB Bold when it first came out was $999. The Tilt 2 is $879.99


After any sort of discounts, depending on your plan or w/e...you could possibly come out under those retail prices, even after 24 months. Not $120.00 under, but still.
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Tmo Slave

Dec 20, 2009, 1:03 PM
No Tmobile doesn't extend the contract. In the past if you switched to a promo plan it did but not anymore.
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rob_vzw

Dec 18, 2009, 10:13 PM
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 kind of txt plan as well. Pretty nice evasion on the part of VZW to point out a scenario that has nothing to do with the issue at hand.
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Menno

Dec 19, 2009, 1:58 PM
Besides for the fact that for ever data phone, how many basic phones are there? Especially when you are talking family plans where only 1-2 phones may use data, but the rest of them will be higher end devices, that only use text and calls?
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JeffdaBeat

Dec 19, 2009, 3:27 AM
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 FCC etc.) companies take a hit when customer's leave. So I believe that part.
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Murphy

Dec 19, 2009, 10:19 AM
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 the manufacturer they are not even close to the retail price
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mosherkl

Dec 19, 2009, 12:59 PM
Exactly! It's not like that extra $40/month is used to support capacity on the data network for a device that is usually much more data intensive than a feature phone, too. Hell, I usually go through at least 4 GB a month with Mobile Web on my EnV2...... 🙄
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Menno

Dec 19, 2009, 1:55 PM
Yes, they are getting a ton of revenue on the data, but that doesn't equate to profit. Do you honestly think that providing data is next to free? If it was, why doesn't every carrier have nationwide 3g coverage? Data is expensive, or everyone would have it.

On top of that, phone manufacturers like making profit just as much as everyone. They can't make it on plans, so they make it by charging phone companies because they know that verizon, att, etc can't make money without phones, and american consumers will refuse to pay the actual cost of the phone, so no matter how much Motorola, LG, etc charge, the end consumer will still only pay a max of 199.

Math is a funny thing because it often includes more than one variable.
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Versed

Dec 21, 2009, 9:12 PM
We aren't arguing data costs, they are what they are, and yes phones like the droid and iphone suck more data then feature phones. And they are in the right to charge more. Still they aren't losing anything, and thats ok, as said before they are in the business to make money on that.

I can't see how VZW or AT&T are losing money on $30 a month data. And if so, I would like to see a citation to support that argument.
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Menno

Dec 21, 2009, 10:23 PM
as long as people arn't tethering, I can't see them losing money on the data plan either.
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lilyofthenorth

Dec 22, 2009, 10:06 AM
salary for:
customer service reps
phone technicians
service technicians
sales reps


online website
building towers
maintaining towers
investing in new technology

maintaining stores
rent
lights
internet
phone

These are just what I can think of atm.

Do people honestly think that all the revenue just goes into Verizon pocket? They have to reinvest in order to keep up with "popular demand". They have to pay the people that they employ....

Yes, they do turn a profit but if you were in business would you be happy just barely getting by? UUUmmmm NO!!!!
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Slammer

Dec 22, 2009, 11:07 AM
Verizon is far from being "Just getting by". They are one of the most profitable carriers in the world based in a country that pays the 3rd highest cell premiums in the world.

What is really amazing is that when I am traveling on the road, I have a better chance to find a Verizon store than a toilet. Alot of overhead that they don't seem to shake a stick at. Doesn't it make you wonder who pays for stores on almost every corner?
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lilyofthenorth

Dec 22, 2009, 11:16 AM
Yeah the customer thats complaining that they have to travel 2 1/2 miles to get to a store.

I would rather work for a company that is turning a profit than one that's moments away from bankruptcy!!!
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Slammer

Dec 22, 2009, 11:30 AM
Obviously there is a problem if a subscriber has to travel 2 and half miles to a Verizon store on a regular basis enough to demand something closer.
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lilyofthenorth

Dec 22, 2009, 12:16 PM
🙄 At this point you just want to argue....You're nitpicking just to irritate!!!

I wouldn't be surprised if you were one of the customer complaining that the store was to far away bc they couldn't see one from their door step.

P.S The nearest corp store is 56 miles from me!!
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Azeron

Dec 19, 2009, 2:45 PM
Break down the $29.99 data charge for me. How is it distributed? Does RIM or whomever get a cut and if so how much?
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Versed

Dec 21, 2009, 9:14 PM
RIM gets something, how much I have no idea, but I don't think its $17 as someone posted earlier.
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dshearn

Dec 19, 2009, 10:25 AM
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 the store for any other reason.....

it took 11 months for the company to make a single penny off that contract.



That for a 83 dollar(invoice) Nokia

not a HTC (689 on invoice)
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stephen5688

Dec 19, 2009, 3:45 PM
So Verizon and some of you, wants me to believe that they lose money if the customer cancels at the 23th month. With that said, this would mean the most there profit could be on a single customer, who fulfills there contract and then cancels would be what ever that customers bill is for the 24th month. REALLY people. They go through of this to make a $80 profit over two years, would they not be better off just getting a job at McDonald's?
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dshearn

Dec 19, 2009, 3:57 PM
I would bet that is only on some more rare cases that involve Data and blackberry BIS contracts.

I am sure they average in a customers use of resources ( IE the customer that comes in once a month becuase he/she does not understand her Blackberry ECT....)
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Azeron

Dec 19, 2009, 4:31 PM
*Shrug* I think the point is: Don't cancel. I don't believe anything Verizon says. I do believe they have the right to charge a $350 ETF. I hope the FCC says otherwise so the BOGO Storm 2 and Droid Enis deals will go away.
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Versed

Dec 21, 2009, 9:37 PM
They had them deals before the $350 ETF came into effect, and if its reversed they will still have them. Then again ever see the ETF those SOB's tack onto a plan on top of the carriers?
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DonM

Dec 22, 2009, 12:15 PM
They haven't made money on the existing contract by the 23rd month... How can they allow upgrades before that?
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