EarlyTerminationFee Archive

  • FCC offers ’simple’ ‘tips’ for avoiding pesky early termination fees

    FCC offers ’simple’ ‘tips’ for avoiding pesky early termination fees

    Posted on May 26, 2010 | No Comments
    The government is just about the last place we'd look for helpful pointers on much of anything, much less when shopping for a new phone -- but that didn't stop the FCC's Consumer Task Force from whipping up a PDF of things you can to do prevent yourself from getting burned with a multi-hundred dollar early termination fee when buying the handset of your wildest dreams. There's nothing in here that isn't obvious to a seasoned phone buyer -- buy the phone at full price instead, ask about a trial period, look into proration, and so on -- but it goes without saying that these are the kinds of tidbits average consumers should know before setting foot in the store. Perhaps the more interesting thing about this effort on the FCC's part is that it indicates the feds haven't forgotten about the stink it made about rising ETFs not long ago -- and AT&T's move to hop on the bandwagon can't be helping to smooth things over in Washington. Anyhow, go get your learn on before some seedy carrier sales rep takes advantage of you, won't you?

    FCC offers 'simple' 'tips' for avoiding pesky early termination fees originally appeared on Engadget on Wed, 26 May 2010 22:31:00 EST. Please see our terms for use of feeds.

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  • Verizon to FCC: hey, you said ETFs were okay!

    Verizon to FCC: hey, you said ETFs were okay!

    Posted on December 18, 2009 | No Comments
    Even though the FCC just gave Verizon until Monday to respond to its inquiries regarding the company's new $350 "advanced device" early termination fee, they've shown some hustle here and delivered their 77 (yes, seventy-seven) page response today. Here are the two big takeaways consumers are going to care about:
    • The company justifies the advanced device ETF a couple ways; it starts out by referring to some 2003 statements by the FCC in which the Commission says that it doesn't support the concept of customers breaking contracts and that carriers have a right to recoup those fees. Of course, that really doesn't drive to the point here, which is that Verizon's now charging two completely different ETFs based on a rather arbitrary line in the sand drawn by Verizon; to that end, the carrier says that the additional cost it incurs to procure the devices on its advanced list is greater than the difference between the two ETFs ($175) on average. It also says that it needs that extra guaranteed revenue to keep its broadband network up to snuff, since advanced devices are more likely to strain it.
    • Regarding the weirdness at the end of the contract -- where a customer still owes $120 23 months into a two-year deal -- Verizon says that it's still losing money (read: we should be thankful they're prorating at all). As an example, it says that its average loss for a customer canceling 12 months into a contract is about double the $230 prorated ETF on an advanced device, and that statistically speaking, customers are far more likely to cancel early on than late. While we don't doubt that, we think they're trying to divert the conversation here just a bit.
    It's hard to say whether these responses are going to sate the FCC on the matter, but seeing how Verizon's showing no signs that it's interesting in changing its policies, this could still turn into a battle royale. Stay tuned -- something tells us this isn't the last we'll hear on the matter.

    [Thanks, Daniel P.]

    Verizon to FCC: hey, you said ETFs were okay! originally appeared on Engadget on Fri, 18 Dec 2009 15:50:00 EST. Please see our terms for use of feeds.

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  • FCC gives Verizon the third degree over $350 ‘advanced device’ ETF

    FCC gives Verizon the third degree over $350 ‘advanced device’ ETF

    Posted on December 4, 2009 | No Comments
    Early termination fees have always represented the flipside of subsidized pricing -- the necessary evil that keeps free phones free. Thing is, they were tough enough to swallow at $175 or $200, but Verizon's recently gone for the jugular in a hell-bent effort to keep subscribers locked in by upping the fee on vaguely-defined "advanced devices" (read: any phone a power user would ever want) all the way up to a mind-bending $350. Turns out the FCC is as confused and worked up as everyone else, though, having fired off a 4-page communique to Verizon's veep of legal and external affairs today asking how customers are notified of the new ETF, how the prorating formula is calculated (hint: they don't like that you still pay $120 after 23 months of a 24-month contract), and how an "advanced device" comes to be, among other things. Riding on the letter are a few extra questions about inadvertent mobile web charges for customers that aren't signed up for a data plan, totaling nine paragraph-long queries that the feds want answered by December 17. Your move, Verizon.

    [Thanks, Daniel P.]

    FCC gives Verizon the third degree over $350 'advanced device' ETF originally appeared on Engadget on Fri, 04 Dec 2009 13:46:00 EST. Please see our terms for use of feeds.

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  • Don’t shop drunk: Verizon’s $350 ETF is now live

    Don’t shop drunk: Verizon’s $350 ETF is now live

    Posted on November 15, 2009 | No Comments

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    Just a word of caution to anyone out there with an itchy credit card finger: signing up for a contract with Verizon just became a considerably more binding affair thanks to a big boost of its contract early termination fee from $175 to $350. Rumored for a few days now, the change became official as of yesterday, which means that anyone who bought an "advanced device" prior to the 14th is in the clear. The advanced device list can be found on Verizon's site, and as you might expect, it's a little broad and ridiculous -- winners like the Versa, Exilim, and Glyde are on there, so they're obviously not just referring to smartphones. They throw you a bone by reducing the ETF by a stout $10 for every month of the contract you successfully hurdle, but that still leaves you with a $120 ETF 23 months into a 24-month deal... so yeah, just be careful out there and don't do anything rash, alright?

    Don't shop drunk: Verizon's $350 ETF is now live originally appeared on Engadget Mobile on Sun, 15 Nov 2009 14:44:00 EST. Please see our terms for use of feeds.

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  • Verizon looking to bump early termination fee to $350 on ‘advanced’ devices

    Verizon looking to bump early termination fee to $350 on ‘advanced’ devices

    Posted on November 4, 2009 | No Comments

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    You know what's worse than showing your Bitter Beer Face to the world after you passed on Apple's iPhone and let AT&T enjoy the spoils? Raising your early termination fee to stratospheric heights. Just over a year ago, we honestly though this whole ETF thing was headed in the right direction, as most of the major carriers (VZW included) sought to prorate contracts in order to lessen the charge as one's contract drew closer to an end. Now, however, Big Red is evidently gearing up to pull a 180, with the slide above showing a $350 ETF for "advanced" devices (read: probably anything deemed a smartphone). The newly hiked rate will go into effect on November 15th, and while that $350 will decrease by $10 per month over the life of the agreement, this pretty much guarantees that you won't be adding a line, disconnecting and then flipping that phone on eBay.

    Verizon looking to bump early termination fee to $350 on 'advanced' devices originally appeared on Engadget Mobile on Wed, 04 Nov 2009 08:42:00 EST. Please see our terms for use of feeds.

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