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FCC Wants A Better Explanation from Verizon On ETFs

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it is the consumers choice just make a informed one

tuminatr

Jan 8, 2010, 11:30 PM
I am not the kind of guy to get all bent out of shape over this kind of a thing. I have verizon and in December upgraded to the droid. I was aware of the $350 etf and it does not bother me. I had a month to try the droid and if it did not make me happy I could return it and be out of contract.

I bought it intending to keep it, so whats the big deal?

I got it as a one year contract for $225 with my company discount.

I looked on expansys and they sell the milestone (the GSM droid) for $641 with out contract

even if I canceled today I could sell my droid on ebay for about $500 so how bad is it that Verizon has a $350 ETF. I would be out $75 Verizon lost a bunch

It was a good deal for me, I just don't understand why people got so...
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Azeron

Jan 9, 2010, 2:23 AM
Because they want to make that extra $175 profit when they buy the Droid, cancel and then pop it on Ebay. Look I have upgraded my line and then switched back to my previous phone and made $400 on a Dare. It was sweet! I totally understand why these guys want to get over. I just don't believe Verizon should sit there and let them.
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acculabs

Jan 9, 2010, 7:37 AM
No, but is should at least be a greduated penalty ETF. When Verizon says that they lose money if someone cancels in the 23rd month of a 2 year contract that is nothing but BS.

BTW I am a Verizon customer with far less complaints than my friends that struggle with ATT.
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Otowncell

Jan 9, 2010, 10:37 AM
Technically they are losing money because they already budgeted that 24th month into their revenue stream and back out to advertising, network maintenance, ect....
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Versed

Jan 9, 2010, 11:59 AM
Otowncell said:
Technically they are losing money because they already budgeted that 24th month into their revenue stream and back out to advertising, network maintenance, ect....


Network maintenance comes off your monthly cost, not off the phone.
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acculabs

Jan 9, 2010, 1:42 PM
So, you are claiming that they lose just as much from a contract cancelled in the 23rd month as the 2nd month? That really does not make mathematical sense.
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Otowncell

Jan 9, 2010, 3:06 PM
No of course they lose more in the 2nd month because they don't get the rest of the 22 months revenue stream, as in the 23rd they only are missing the last month (24th) which is less then the missing 22 months of course but still its a loss of money
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Versed

Jan 9, 2010, 5:12 PM
Well, sure any customer porting out, be in or outside of a contract is a "loss of money". Goes right to the gist, its not about ETF fee's its about making sure there is no economic way a customer leaves once signed. They want you for life. And will do what it takes to keep it that way.
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Azeron

Jan 9, 2010, 5:30 PM
Yeah, it's all about locking customers into contracts. No doubt about it. The customer does not have to allow themselves to be herded into it though. In the past, companies did all kinds of foul ish like extend contracts for things like rate plan changes. Thankfully, those practices are over. Now, all one has to do to stay contract free is buy phones off ebay or pay full retail price for new handsets. Is that really asking too much? I don't think so.
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Versed

Jan 9, 2010, 10:13 AM
Some what true, but then again, seeing this phone for most part will only work on one carrier, just how much would VZW be out, when the purchaser goes to VZW? They still will have a paying customer.
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tuminatr

Jan 9, 2010, 11:08 AM
I guess I don't care if Verizon looses money. I know its a good deal for me even if I cancel and pay the ETF

if the ETF was $175 I could actually make money by canceling. Yep I could order the phone online with my company discount for $180 (instant rebate, free shipping, waved activation) activate it call in and cancel pay the $175 ETF and sell the phone on ebay for the $500 that they are going for and make $145

like I said I don't care if Verizon makes money. I do however understand why they want to charge a $350 ETF on devices like the droid
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Versed

Jan 9, 2010, 12:03 PM
tuminatr said:
I guess I don't care if Verizon looses money. I know its a good deal for me even if I cancel and pay the ETF

if the ETF was $175 I could actually make money by canceling. Yep I could order the phone online with my company discount for $180 (instant rebate, free shipping, waved activation) activate it call in and cancel pay the $175 ETF and sell the phone on ebay for the $500 that they are going for and make $145

like I said I don't care if Verizon makes money. I do however understand why they want to charge a $350 ETF on devices like the droid



VZW isn't not losing money on its network, or at all, same with AT&T and people have been flipping iphones for over two years. So find anot...
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tuminatr

Jan 11, 2010, 10:55 AM
I don't work in their finance department so I don't know when there break point is on the equipment, my guess is you don't either

again I don't care if Verizon makes money but I know none here knows at what point Verizon makes money on a phone so don't assume you know there finances

my only point was its a good deal for me
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