FCC Opens Investigation Into Verizon
Apparently customers are not the only ones upset by Verizon's new early termination fee (ETF) policy because the Federal Communication Commission (FCC) has now opened an investigation. Verizon recently doubled the fee for customers with premium devices, from $175 to $350, who would like to get out of their contract with Big Red. Verizon argues that consumers can avoid the ETF by paying the full retail cost for their devices.
The FCC is also investigating $1.99 data charges that are present on customer's bills. The FCC asked "whether consumers are being charged for minimal, inadvertant use of Verizon's Mobile Web service, and what notice is being provided to those consumers." Verizon has until December 17, 2009 to respond to the FCC.
Source: Phone Scoop
© 2009, rainfreak. All rights reserved.
Vz’s new fee’s are just NUTs i hope the FCC biotch slaps them and then moves to at&t
Although I hate the increase and of course the consumer is yet screwed again I can’t blame Verizon. I paid 135 bucks for my new Imagio and after the rebate and new for two I saved over 200 plus bucks for this phone. Plenty enough to pay off the original 175 fee to break my contract. Bog money looser for Verizon. Verizon is the mpst expensive but doe have the largest network. Give and take relationship.
More like give some & they take more. So what they’re large. They have the highest subscriber base & the highest charge rate. Its easy to stay large when its too expensive to leave.
They make up the cost of the phone many times over in just a year. This is a pure greed tactic.
I dont think so, I bought a netbook black Friday for $29 never intended to use Verizons service payed the $175 etf so I gat a gateway netbook that sells for $400 through gateway for $239 and I know they took a huge loss on it if the etf was $350 i would have paid $414 to buy and cancel and its not worth it
also my friend Bob dropped and broke his storm he had had it for 6 months and did not buy the insurance he could eather pay $489 for a new storm or cancel and pay a $145 etf and buy a new storm for $49 after rebate this one he still comes out ahead with a $350 etf $50 for the storm and $35 activation fee $435 total
despite what you think companies are not evil they see a problem and they fix it, Verizon will win this one
The only part of the FCC investigation I see that has merit is the part where there is still $120 ETF at 23 months. As others have said, the increased ETF is to recoup costs for the increase discounts for high dollar phones. Just 4 years ago, a XV6700/Treo was like 419.99+ ON CONTRACT. There is currently no PDA anywhere close to that price on even a 1 year contract. When the Touch Pro came out, the MSRP was ~$660, ~519.99 full retail for the carrier and ~249.99 on contract. The moral of this story? Without subsidies most of you could not afford these phones. If you don’t wanna pay the ETF, either don’t get those phones, get the insurance, and/or do your research before switching to a carrier. That simple. I would like to see a smaller ETF near the end of the contract though.
this whole thing about the 120$ after 23 months being “unfair” is silly what ever happend to upholding contracts?? you made a commitment to verizon to pay for their service for 2 years this represents value to them in return they offer you a discount on a phone this is of value to you. don’t look at it as “recouping” costs you made a commitment you stepped back from the commitment they have every right to charge you as the contract said they would if you did.
if you don’t want to be bound by the contract then you can do month to month and pay full price for your phone deal with it or go somewhere else.
also this whole bit about oh they changed my fees well if they DID change the terms of the contract then you are entitled to withdraw without consequence if they didnt change anything and are just charging you like they said they would then you have no right to complain.
TL;DR:you sign the contract its your responsibility to make sure you understand and agree to the terms if you don’t agree then don’t sign it. don’t want ETF then pay (full price) for your phone and use month to month service. this really isn’t that difficult.