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New ETFs for data devices

dalily21

Nov 4, 2009, 3:41 AM
Did anyone else read this? There is going to be a new ETF for Data devices. It will be $350.00 for people that start service with a data device or upgrade to one on or after 11/14/2009. It will take off $10.00 for the variable ETF. A little excessive I think, maybe $250.00 sounds about right.
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cwcanty

Nov 4, 2009, 10:06 AM
The best idea I heard in response to this was to do a tiered system

Months 1-3 of service: 350 for cancelling

Months 4-6 of service: 250 for cancelliing

Months 7-12 of service: 175 for cancelling


Atleast after the first year you are back to a standard ETF. The people who are cheating the system are doing it within in the first 2-3 month, not the 11th month. And after a year, most of these smartphones plummet in value. $220 to get out of my contract after a year, for a blackberry curve 8330 is insane!!!

Chris
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prizbilla_babykilla

Nov 5, 2009, 10:28 PM
well, I'm assuming with the 8530 coming out, we wont be selling a lot of the 8330's... but i know what you mean. it's a lot no matter how you look at it. but isn't it really there to try to lower churn and people reselling the new "hot" devices?
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yeahright

Nov 4, 2009, 10:13 AM
I am not surprised they are giving phones that retail for $600 for $200 or less after rebates. Kinda of makes sense to me. I mean it sucks, but makes sense. I can buy an android for $199 after rebate, pay the $175ETF= $375 and get $550 for it on Ebay making a profit of $175.

You know jerkbags out there are doing stuff like this and that is why they are changing it.

I do like Cwcanty's idea of a tier system
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howardk111

Nov 4, 2009, 10:36 AM
Will a customer using a Blackberry or other smart phone be able to terminate the data plan, quit using the Blackberry or other smart phone, and use a dumb phone of his for the remainder of his contract, without any ETF applying? I understand that such is the case now.
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yeahright

Nov 4, 2009, 11:48 AM
yes... if you get a droid then your etf is the $350... if you then switch to a enV and sell the Droid then you will have o penalties.... however your ETF will remain at the $350 until that contract exprires
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howardk111

Nov 4, 2009, 1:29 PM
I am not following you. I am asking what happens if you terminate the data plan (due to going back to an old dumb phone you might have) but continue your contract for phone service until the end of the contract period and do not sell or give away your smart phone. In that case, will there be an ETF charge?
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Kenton2k

Nov 4, 2009, 1:31 PM
So if it launches on the 7th, you have one week to remain on the cheaper ETF?
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dalily21

Nov 4, 2009, 1:47 PM
Yeah, that didn't make sense to me. Why not have it change with the Android that comes out? No idea on that
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Menno

Nov 4, 2009, 8:17 PM
might be another device?
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howardk111

Nov 4, 2009, 1:36 PM
Also, would this apply even if you did not take advantage of the BOGO, but merely bought one smart phone?
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Cellenator

Nov 4, 2009, 4:53 PM
Yes
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Cellenator

Nov 4, 2009, 4:55 PM
There will not be an ETF charge if you complete your contract but if you go back to a dumb phone the 350 remains because you already got the subsidized price for it.
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howardk111

Nov 4, 2009, 5:31 PM
If you are right, then it is different than the current Verizon situation where there would be no ETF upon the mere cancellation of the data plan if you continue the voice plan. (At least that is the way it was explained to me by the Verizon rep when I asked him how it worked a couple of weeks ago.)
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Menno

Nov 4, 2009, 8:10 PM
it is the same.. the only thing that changes is that the ETF is more expensive on higher subsidized phones
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yeahright

Nov 4, 2009, 9:30 PM
howardk111 said:
I am not following you. I am asking what happens if you terminate the data plan (due to going back to an old dumb phoneblockquote>

howard... not sure where you are getting confused... going back to an ENV from an Android is doing just that?

Step one... buy an android (or other advanced device) you will be in a 2 year contract with $350 ETF if you cancel SERVICE completely

Step Two... Switch back to an old phone or non smartphone (such as an ENV) and you will still have the $350 ETF on your contract... But you will not be charged an ETF unless you cancel

Step three... when you switch back to a dumb phone you will have to drop your Data package... They don't care as long as you keep your line ac
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(continues)
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Azeron

Nov 4, 2009, 10:30 PM
It has nothing to do with your data plan. If they subsidize an advanced device then if that line of service is canceled you will pay the $350 ETF. If you do a BOGO and get two advanced devices subsidized then each devices ETF is $350.
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Azeron

Nov 4, 2009, 11:37 AM
This is more encouragement for Month-to-Month pricing going forward.
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prizbilla_babykilla

Nov 5, 2009, 10:34 PM
NO. not more encouragement for month-to-month. you have to pay almost $600 for a droid outright, right? and if you get it for $200 with contract and have a $350 etf, it's still less expensive to buy and cancel, just not to buy, cancel, and sell phone. ya dig?
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Menno

Nov 4, 2009, 12:35 PM
I like it too.

Retail on the Droid: 549 (or so)
Pricing on droid: 199 (after rebate)
Early term: 175
First month: 100 (set up charges and prorated charges)
Overall: 474


Why should it be cheaper to create churn?

Now, I do agree there should be a tiered system, so after a year it drops to normal, but I can see the logic behind it.
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Chapperal

Nov 4, 2009, 8:20 PM
This doubling the ETF is so stupid! My 1 year contract with Verizon was up in July. So now I am going month to month. I am not going to sign another contract with Verizon until that sweeten the deals. Doubling the ETF is not a sweet deal.

I can see people leaving now for some of the other carriers where they go month to month, 50 dollars and get unlimited everything.

By the way I went to a corporate store today to check out Storm2. I was not impressed.

By the way, though Verizon is my main phone, I also use my AT&T as a back up. For where I live, both phones have the same coverage. I am thinking of just getting rid of the Verizon phone and going with the Gophone if Verizon starts pulling crap like this. Is Verizon trying t...
(continues)
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Menno

Nov 4, 2009, 8:37 PM
You don't like the phone, don't sign the contract.

Or, sign the contract, and keep the plan for the full contract term.

This fee has NOTHING to do with services offered.

This new ETF policy does not effect me at all because I buy all my devices RETAIL so I have no ETF. If you hate contracts that much, do the same.

If you think it's completely "fair" that you can profit by creating churn for a company, then you're the one that is brainwashed.
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justmarried

Nov 4, 2009, 9:46 PM
Menno well put......if he doesn't want to sign a contract, then pay full retail, or get the Gophone......simple.
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yeahright

Nov 4, 2009, 9:55 PM
I never understand this argument.. never made any sense to me.

First off... This is advanced data devices (droid, BB) if you are thinking Go phones that is a totally different thing. Lets see... $550 -$600 Android... $40 refurb samsung at Walmart. See the difference.

Prepay will also be limited to native network and customer service is basically non existant, if it works for you... great, that is why carriers offer it, there is a market for it. But if you think that you are going to find a BB or Android on prepay and pay less then $200 for it upfront and have no service issues in the area of Data (which is why you get an advanced device) then have at it.

Look it is this simple.. you sign contract you get $350 to $400 off device......
(continues)
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Azeron

Nov 4, 2009, 10:24 PM
Carriers never should have subsidized these phones in the first place. Now they are doing the same with these net books. Consumers do not value the phones and that is why you see parents allowing their three year olds to use their Envy Touch as a chew toy. Better get insurance...
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yeahright

Nov 5, 2009, 12:07 PM
I agree... customers don't know the true value of their phone, even today people are shocked to find out that their ENV is $350 to replace after their dog ate it.... "what do you mean I can't get a new one for $80" we explain in thoroughly in our stores... but walmart and internet and some agents don't build the value in the phone.

I don't think we can ever go back, I just don't see the majority of consumers coming up wit that kinda of cash. Think of Christmas shopping for a family, Dad BB Tour, Mom ENV 3, Son Chocolate Touch, Daughter Env Touch.... that will be $1300 dollars please, would you like to buy a car charger today Laughing yeah that is going to happen
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Azeron

Nov 4, 2009, 10:16 PM
LOL Why would Verizon need anyone to stick up for them? I believe consumers should buy handsets directly from the manufacturers. If carriers would all stop subsidizing handsets we could get to my desired reality much sooner.
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Menno

Nov 4, 2009, 11:39 PM
yep. Ironically, if you could buy phones unlocked, retail pricing would drop (and thus if you wanted to sign a contract, you could basically get any phone free)
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