Verizon doubling early termination fees - FMVperformance.com : The site for all your Ford Mazda and Volvo needs
 
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post #1 of 10 (permalink) Old 11-04-2009, 03:35 PM Thread Starter
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Verizon doubling early termination fees

Thought Verizon customers would appreciate this:

Quote:
It's called lock-in, folks: The tactic that works by ensuring that once you sign on with a product or a company, you have virtually no way to escape. You're stuck for life. Apple does this with the iPod by locking iTunes to its music player. Online e-mail providers do this regularly by making it impossible to get your email out of their system and onto another.

But perhaps the most notorious example of electronics lock-in is the good-old cell phone contract early termination fee. Every carrier has one: If you want to get out of your contract early, you'll pay at least a hundred bucks for the privilege. The carriers justify it by saying you get a better deal on your cell phone when you make the initial purchase, but for many, hanging on to a crummy phone for two years just isn't worth it, and many people find that after the first year has passed, they want out of the deal (usually so they can get an iPhone).

And that termination fee is always painful.

Well, if you sign up for new service with Verizon beginning November 15 or later, that early termination fee is about to start hurting much worse. According to Boy Genius Report, Verizon is preparing to double its ETF to a whopping $350 if you cancel your service before your contract is up. For users with a simple calling plan, that amount of money can be close to the fees for a year's worth of service.

Oh, there's a little bone thrown in there for you: For every month of your contract fulfilled, the company knocks $10 off the ETF. Great deal? Hardly: Cancel your 24-month contract in the 23rd month and you're still on the hook for a $120 termination fee. Ouch.

It's unclear if the new fee will apply to all devices or just mysterious "advanced" ones (see the link for further speculation), but either way this is a bad omen for all cell phone users, as all the carriers tend to raise prices and fees in lockstep with each other whenever they think they can get away with it. (See also: Text messaging fees.) And they usually do.
To see the article, click here: http://tech.yahoo.com/blogs/null/154280
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post #2 of 10 (permalink) Old 11-04-2009, 03:37 PM
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Re: Verizon doubling early termination fees

I, for one, blame Mizzle.

seriously though, that's redonculous.

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post #3 of 10 (permalink) Old 11-04-2009, 03:40 PM
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Re: Verizon doubling early termination fees

I don't like it, but honestly it makes sense.  The devices it will be charged on are typically discounted $300-$400 or more from the retail price.  I guess it's fairly common for people to buy high priced phones, cancel the contract the next day and then sell the phone on ebay and still make a tidy profit.

I can't believe I just defended VZW

[quote author=DamnLocust link=topic=160139.msg3401618#msg3401618 date=1257367056]
I, for one, blame Mizzle.
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post #4 of 10 (permalink) Old 11-04-2009, 03:47 PM
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Re: Verizon doubling early termination fees

If it's only on the higher end devices, it's not so bad. Those plans start at $100/month and go up from there.
$350 is about 2 1/2 months of my old contract, which I just downgraded my minutes on. (I haven't been using the phone as much lately)

I also recently found out that you can now change your VZW plan at any time without having to sign up for another 2 years, which is pretty badass.
I'm sure there are lots of people downgrading their plans, so this is just one way where they can recoup some of that lost money.


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post #5 of 10 (permalink) Old 11-04-2009, 03:48 PM
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Re: Verizon doubling early termination fees

I was told if a carrier changes their terms and conditions, customers have a window which they can end their contract without penalty.

I personally see our current situation of carrier specific hardware and contracts as a phase. To halo0's point, the cost of the hardware is great and they need to secure customers to recoup their costs. However, as the cost of hardware, as well as their OS decreases, these contracts and their early termination fees will subside. Customers will only deal with so much before they (or the government) takes a stand. We're seeing this type of consumer protection in other areas of our lives now such as in banking/interest rates etc.

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post #6 of 10 (permalink) Old 11-04-2009, 03:52 PM
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Re: Verizon doubling early termination fees

The yahoo tech article seems to be purposely misleading. The actual Verizon doc specifies “advanced devices”.

http://www.boygeniusreport.com/2009/...anced-devices/



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post #7 of 10 (permalink) Old 11-04-2009, 06:35 PM
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Re: Verizon doubling early termination fees

yep...say the new Droid for instance. People will add a line to their plan to get the new device relatively inexpensively. Then go and pay the ETF and sell off the Droid for big money seeing as it looks to be a very hot in demand item.

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post #8 of 10 (permalink) Old 11-04-2009, 06:49 PM
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Re: Verizon doubling early termination fees

Wow... glad I'm on month to month w/ Verizon...


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post #9 of 10 (permalink) Old 11-04-2009, 06:58 PM
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Re: Verizon doubling early termination fees

You think that's bad ya'll gotta look into the EFT on home security systems. :shock: Its the only reason i don't have one, it's sooner buy a Rottweiler, and get it trained.

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post #10 of 10 (permalink) Old 11-05-2009, 09:09 AM
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Re: Verizon doubling early termination fees

When my fiancee's family signed up for ATT a couple weeks ago I seem to remember them saying it's $275 to start and they knock off $5 each month. But a contract is a contract. It's called that for a reason



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