14 DAY TRIAL // Mobile phone carrier Verizon Wireless has recently announced a rather disturbing move, namely the doubling of early termination fees, a decision that the operator says has been taken due to the higher prices smartphones have today. The new ETF’s Verizon applies have been brought up to $350 from the previous $175.
What this actually means is that users who would like to end their contracts earlier will have to pay double than before. Even if Verizon states that its decision is based on actual facts, many users out there are already unhappy with this move, and Big Red is getting a lot of attention because of this, especially since other carriers are not making the same move for the time being.
Most of the early termination fees carriers apply at the moment are of about $200. This amount of money is aimed at enabling the wireless carrier to recoup a part of the cost of the mobile phone a user has purchased at a subsidized rate or for free. However, as the contract wears out, the price is most often pro-rated.
The new termination fees Verizon applies were announced just before the launch of Motorola DROID, its first handset that comes with Android on board. The price tag for the handheld has been set at $199.99 on a two-year contract, while the full price is of $559.99, meaning that Verizon is subsidizing around $360 for it, about the same amount of money as the ETF. Non-smartphone devices are said to have lower early termination fees.
However, it remains to be seen whether Verizon will maintain this ETF or whether it will lower it to the level others apply at the moment. Especially since carriers like Sprint and T-Mobile do not plan to make changes to their fees, while AT&T wouldn't comment on its plans, according to moconews.