Necessary Evil Archive

  • AT&T, T-Mobile, Sprint and Verizon break down ETFs for the FCC

    AT&T, T-Mobile, Sprint and Verizon break down ETFs for the FCC

    Posted on February 24, 2010 | No Comments
    Early termination fees. No one likes them but they can sometimes be a necessary evil. If you become unhappy with your service provider or you are overwhelmed with lust for a new gadget on a different carrier, you pay the price. Carriers say that these termination fees, or ETFs, allow them to subsidize handsets and recover those costs over the course of a contract. Should a contract be broken, a carrier recovers those subsidies with an ETF. The FCC recently decided something was amiss with ETFs and probed carriers into explaining the rhyme and reason behind the fees. The carriers have finally spoken, albeit a little unconvincingly. Most of you are already familiar with why ETFs exist, but it is interesting to see the canned and obvious responses from the carriers.

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  • Google dials down early termination fee for the Nexus One

    Google dials down early termination fee for the Nexus One

    Posted on February 8, 2010 | No Comments
    No one likes early termination fees, but for one reason or another they can become a necessary evil. When Google introduced a new channel for buying the Nexus One, I was excited at the thought of grabbing a phone without being hassled by a retail sales rep. The only downside was that if I bought it at the subsidized price and wanted to cancel within 120 days, Google would charge a $350 device recovery fee... on top of the carrier's cancelation fees!

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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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