FCC Not Satisfied with Verizon's ETF Explanation
The *ACTUAL STORY* behind Verizon's higher ETF's.... For those who think you can just pay full price
Back in the day, handsets were only subsidized by roughly $150.00 / $175.00 , but in order to compete with AT&T, Verizon Wireless is subsidizing handsets upwards of $300.00 in order to remain competitive.
If you were to purchase a handset at full price on Verizon's network such as the Motorola Droid, you would effectiv...
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And try buying a new Bold without a contract (paying retail) it's not cheap either.
Menno said:
it DOES prorate. 10 a month. Verizon was one of the first companies to start Prorating their ETF.
And try buying a new Bold without a contract (paying retail) it's not cheap either.
True, but I don't have to buy a Bold or an AT&T branded unlocked Bold to work on their system, savings can be significant from what AT&T charges in their corporate stores and online.
If you had any sense of history you would know that the iPhone is ALSO highly subsidized. Just ask of the dealers who know carry the iPhone how much profit is made on that sale.
Oh wait, they still haven't received their pre-thanksgiving shipments. They still know the cost and commission.
Do some research.
It has been well publicized that the iPhone subsidy is substantial.
All carriers will follow suit. It is frankly a smart business decision due to the loop-hole finding people out there.
What if the ETF was the difference in the amount that was subsidized of the phone you purchased?
doing this would rid the loop-hole you discribed above.
We see this structure in place in Europe and at T-Mobile USA.
what makes it so hard for this to be adopted by other carriers in the US?
1. That would be one hell of an expensive loss and, as you say, people could easily cancel and flip on ebay and make on nice profit
2. As much as ATT subsidizes the iphone, it is STILL an Apple product and Apple price controls everything they have. I honestly doubt Steve Jobbs is going to give anyone free iphones anytime soon.
AT&T will do it within days of Verizon Wireless' final "verdict" of their increase by the FCC.
bluecoyote said:...
The doubling of Verizon Wireless's ETF is due to Verizon Wireless doubling their device subsidies. The hardware cost of the Motorola Droid, for example, is some $400.00 HIGHER than the cost with contract. Verizon Wireless is doing this in order to make up for their lack of compelling smartphones and instead position smartphones that would originally have cost much more against lower-priced smartphones on other carriers.
Back in the day, handsets were only subsidized by roughly $150.00 / $175.00 , but in order to compete with AT&T, Verizon Wireless is subsidizing handsets upwards of $300.00 in order to remain competitive.
If you were to purchase a handset at full price on Verizon's network such as t
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