ETF Fees vs. Discounts on Equipment
http://www.rcrnews.com/news.cms?newsId=23759 »
As Verizon is right up there in subscribers I figured feedback from customers here would be valuable as well.
There have been several items in the news lately regarding ETF fees, whether or not they are harmful and that they should be eliminated.
The report above states that over 70% of consumers surveyed believe ETF fees would be eliminated, but like a typical survey it did not offer any information for comparison.
I am sure 100% of consumers would love to see the ETF go away if there was absolutely no other financial impact. The problem is there would be financial impact. So, to offer our own non-scientific survey here I thought I would throw out my ideas of what the actual "choice...
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As Verizon is right up there in subscribers I figured feedback from customers here would be valuable as well.
There have been several items in the news lately regarding ETF fees, whether or not they are harmful and that they should be eliminated.
The report above states that over 70% of consumers surveyed believe ETF fees would be eliminated, but like a typical survey it did not offer any information for comparison.
I am sure 100% of consumers would love to see the ETF go away if there was absolutely no other financial impact. The problem is there would be financial impact. So, to offer our own non-scientific survey here I thought I would throw out my ideas of what the actual "choice...
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So, consumers, what would you rather do? Risk an ETF but get upfront benefits that exceed said ETF or have no ETF but pay higher costs for your service? There is no option C, at least not in the short term.
AS for me I'd rather buy my phones from a discount store like BB or CC separate from the Carrier and just choose my carrier and pay month to month even if I had to give up M2M. The ETF fees are a hindrance to switching carriers since the service is not always as good as the maps reflect. I'd rather have the option to sign a contract AFTER I'm happy for at least six months or a year.
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Signing a contract would not be so bad if it were cheaper to get out. Correct me if I am wrong, but, you get a cheaper phone by signing a contract, 1 or 2 year, and that is to assure the company you are going to be around long enough for them to make that money back from the phone and then some, and if you leave earlier, you pay the ETF so they get the money they supposely have in the phone.
If the above is correct, then I see it far more fair to pro-rate the ETF. Example, if you complete 12 months out of the 24 month contract, and the ETF is $200, well, the consumer should only have to pay $100 for the ETF, they completed half the contract. I dont see how anyone could not find this a fair policy, execpt the carriers of course, this wo...
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If the above is correct, then I see it far more fair to pro-rate the ETF. Example, if you complete 12 months out of the 24 month contract, and the ETF is $200, well, the consumer should only have to pay $100 for the ETF, they completed half the contract. I dont see how anyone could not find this a fair policy, execpt the carriers of course, this wo...
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I'll make this as simple as possible.Currently Verizon does offer a plan without a contract that pets tha same benefits as a post-paid customer. This is something called easy-pay.Of course you will spend more money per month ex..postpaid=450 anytime unlimtied n&w & in-network calling for 39.99 per month.Easy pay=450 per month unlimited N&W and in-network For 50.00 per month.Check it out! Any questions?
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The ETF is not JUST to cover the cost of the phone, but also the "free" airtime that you receive (ie unlimited nights and weekends/mobile to mobile). All of these things carry a cost to the company. Verizon (although they would never advertise it) will allow you to purchase a phone at full retail and get a plan but you will either just have the anytime minutes or pay an extra $25.00 per month for the unlimited nights and weekends ($15.00) and IN calling ($10.00). So now that great $59.99 plan with 900 minutes will cost you $84.99 per month. In this instance you stay just 7 months Verizon has already made back their ETF, you stay 2 years you have paid an additional $600 in your plan PLUS the higher cost of the phone.
The most common mi...
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The most common mi...
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The best way to handle ETF is to sign for One year then, But your phones offline used or new and stay month to month.
I have accounts with Cingular and Verizon and as long as I do not have to be on the bleeding edge of phone technology I can have a great phone cheap and non contracted service.
I bought a T637 BT enabled phone for my Cingular account for $50!!! The free phone is not half as good as that one.
Its a bit more challenging to find decent Verizon phones used but not impossible.
I have accounts with Cingular and Verizon and as long as I do not have to be on the bleeding edge of phone technology I can have a great phone cheap and non contracted service.
I bought a T637 BT enabled phone for my Cingular account for $50!!! The free phone is not half as good as that one.
Its a bit more challenging to find decent Verizon phones used but not impossible.
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you said it perfect. I dont like contracts, but, I know why they have them. But, to be fair about it, pro-rate would be the best route to go, it would be fair for BOTH the carrier and the customer, and people like me would not be concerned about being under contract.
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There is no need to argue this point... Cricket offers no contract unlimited minute plans. You bring your own phone.... also Cingular has GoPhone and VZW has EasyPay. It already exists and you can see what the rates for each is...
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cricket, LOL...and for the rest, you pay more for, no thank you, I will put my 2 years in and have the cheaper plan
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I guess you either didn't read or didn't comprehend the post. It was made to get people's opinions regarding whether or not they would prefer to do away with an ETF in exchange for the potential loss of savings on certain items.
It isn't an argument, it is a survey.
And Go Phone, EasyPay and Cricket are not neccesarily great examples of how the market would be should ETF fees be eliminated.
It isn't an argument, it is a survey.
And Go Phone, EasyPay and Cricket are not neccesarily great examples of how the market would be should ETF fees be eliminated.
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Just look at it this way. If you came in and paid retail for an lg6100( lets say about $250) and did not sign a contract and cancelled service in 6 months you are still out the 250. If you sign a two year contract and get it for $50 dollars after rebate and then cancel service 6 months later and pay the 175 cancellation you are at 50+175=$225 which would be about the same as paying full retail. So I would rather have the discount and pay out the etf down the road then pay 250 upfront, especially if you like the serice and keep it for awhile!
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On top of that i think the quality of equipment would drop as manufactures would start rellying heavily on the cost associated with making equipment.
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The manufacturers are still being paid the full price of the phone by the carriers anyway...it's the carriers who are eating the cost by giving you the discount, not the manufacturers.
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That was not my point, the point is that this would make the price point of the equipment more critical! Meaning stores and companies would want to carry and sell cheaper equipment thus the manufacturer would consentrate more on making affordable phones than cool features. I think companies like lg, and moto would concentrate less on making 300-400 evdo phones becasue less people would buy them, thus more people would be walking around with crappy lg3200's and moto v60s. I just think they would back off of devoloping all this cool stuff coming out on the newer phones because no one would pay for them. I think the average customer would drop a turd if i told them they had to pay $350 for an lg 8100 or a moto 815. Crap that would make the new...
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That is good logic. Same thing I explain to my customers who consider no contract options.
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