DISQUS

Mashable - The Social Media Guide: Verizon Doubles Early Termination Fees for Smartphones

  • Jeremy Goldstone · 3 weeks ago
    Doesn't this count as a contract change, allowing you to terminate early without paying the ETF?
  • The Dude · 3 weeks ago
    Clearly it doesn't apply to users who are in contract already, only those who enter a contract, whether a new one or renewing, once the change becomes effective. Therefore, no contract change.
  • prowse · 3 weeks ago
    IF you stay WITH Verizon, yes, but that isnt what the article is about.
  • Jeff · 3 weeks ago
    old news is old
  • elchesco · 3 weeks ago
    Pfff...here in Mexico, the early termination fee for an iphone goes as much as 30 times your monthly rate, yes t-h-i-r-t-y times.
  • prowse · 3 weeks ago
    Nobody was talking about an iPhone, we are talking about going TO an iPhone FROM a Verizon smartphone - can't you read?
  • iPhone · 1 week ago
    prowse you are such a douche.. elchesco was merely making a point. So, here's an explanation for the slow (prowse).. Stop bitchin' about $350 because other places have it worse.
  • Steven · 3 weeks ago
    Wouldn't it save them money if a smart phone user stopped sucking up all that bandwidth by terminating early?
  • prowse · 3 weeks ago
    Huh?
  • Mark Jonson · 3 weeks ago
    When does it ever end? First they progressively raise SMS and MMS rates in a price-fixed manner so you can't avoid the charges by going to a competitor. You either pay $0.20+ per message (even received, whether solicited or not) or pay for a bolt-on package.

    Then they force data plans on those with smartphones regardless of whether the user wants or will ever need it, again in unison so that competitors aren't an option. Maybe you just want to use the phone with WiFi? Well, Verizon and AT&T made sure that's not an option.

    Now Verizon wants to raise the ETF because it's a smartphone? I'm sure AT&T will follow suit in the next few months.

    Aside from a few essential utilities, mobile phones are the highest monthly bill I've ever seen. I've even seen some car loans that are less per month than an average mobile phone bill. Even an old-fashioned POTS line with "unlimited calling" is only ~$25-30/month. AT&T and Verizon get $100/month for that, before taxes and before their forced charges if your phone happens to be a smartphone. It is getting to the point that it would be cheaper to run out the contract no matter how far in you are because this would make it so expensive to leave.

    I've always defended the mobile phone companies and their charges, even after I left working for one because I had the opportunity to observe what it costs to operate a large network. But it seems to me, even with that experience in mind, that carriers are just going too far and they know consumers have no option other than to cancel their service and live without it. Of course, there's an app-- I mean, fee for that too.
  • leviscott · 3 weeks ago
    with the world moving to a lifestyle of always being connected to a network, it seems that companies like Verizon kinda have their future secured. Its a bunch of crap that they feel the need to charge us an arm and a leg if we are unhappy with their (already overpriced) service.
  • prowse · 3 weeks ago
    In no way does this practice secure their future. Ever hear of Wimax/Clear?
  • Mark Jonson · 3 weeks ago
    Clearwire is dead. With everyone else going to LTE, Wimax with Sprint will never be viable. Wimax will die along with Clearwire when Sprint gets bought (or goes bankrupt) in the next 3 years.
  • Jason Rukus · 3 weeks ago
    Why wouldn't they learn from the banking industry and continue to fee us to death with little fear of retribution or recourse?
  • Howard Greenstein · 3 weeks ago
    Speaking as someone who just reactivated an old Blackberry on Verizon just to have a VZW phone that works, Verizon has better service. The better service does and can cost more. I just halved my AT&T minutes on my iDropCallsPhone to pay for having minutes (shared with another phone in the business).
    But this seems to be highway robbery. I think they've gone too far. I'm not picking up a new smart phone from them anytime soon.
  • prowse · 3 weeks ago
    Verizon has enough users and enough employees laid off where they could charge 1/3 of their present charges, and still show a profit.
  • The Dude · 3 weeks ago
    One of the bigger questions in all of this is what exactly considered an "advanced device". Of course smartphones would fall into that category, but would there be any other devices that would be part of it as well?
  • G M · 3 weeks ago
    I thought the fcc or w/e was tryna do something about these ridiculous prices.
  • prowse · 3 weeks ago
    You don't need to think, you need to go to fcc.gov and do a simple search - all will be answered.
  • Anthony Clauser · 3 weeks ago
    Sheesh - I just bought the Droid outright and this still strikes a nerve with me.
  • HughBorg707 · 3 weeks ago
    That's why I just stay out of contract with Verizon and buy used smart phones off of eBay as I go along. I'm still using MotoQ 9C and it does what I need (email, sms, twitter, FB, calling, doc reading) just fine. Started with Moto Q years ago.
  • claudiap · 3 weeks ago
    Uh, how do you get a Verizon contract for an iPhone? Did they suddenly start offering iPhones? Just wondering.
  • Brent · 3 weeks ago
    This whole subsidizing versus contract thing carriers are shoving down our throats is complete bullcrap as it is. And being a Verizon customer this ETF change is a smack in the face.

    Carriers buy phones in bulk from manufacturers at a HUGE discount far below what they even discount the phones to us for. And sometimes even better on exclusives. I have it on good authority that AT&T pays an average of about 65 bucks a pop for iPhones from Apple then sells em for $199 with a 2yr contract. Throw an $80/mo data plan on top of that and I'd say AT&T is making at least a $2000 profit per customer.

    It's mostly US carriers that are raping us blind. Want an example, take a look at what the iPhone goes for on Orange in the UK.

    ETF's are complete bull and subsidizing is a lame excuse to be charging it.
  • andreasduess · 3 weeks ago
    That's an urban myth, unfortunately. The true cost of an iPhone to AT&T is about double of what they sell them for to the public. Check Apple's profitability numbers for more details.
  • prowse · 3 weeks ago
    Complete lie and bullshit sir.
  • andreasduess · 3 weeks ago
    From CNet:

    "It allows us to make imperfect estimates on just how much Apple is receiving in subsidies on each iPhone 3G. $4.6 billion in revenue divided by 6.9 million units equals $666.67 per iPhone. That's a little high, since some portion of that revenue has to be attached to Apple TV sales, but even making the unlikely assumption that Apple sold $500 million worth of a product it calls a "hobby" during the fourth quarter puts the average cost of an iPhone 3G at $594.20."

    Maybe a quick google search would be a good idea, before you're calling BS and lies.
  • CoachRollie · 3 weeks ago
    I have a feeling Droid isn't going be what they expect it to be and they want to lock people in.
  • Luggage Straps · 3 weeks ago
    What consumers fail to realize is the wireless companies that continue to provide communication between them, their children, their employer etc....are for profit companies. Consumers continue to try and abuse the warranty, insurance and their own need to have the newest latest and greatest device. They expect the wireless company to absorb this cost.
    Wireless companies employ thousands of people. These employees need their employer to stay profitable in order to stay employed.
  • Brent · 3 weeks ago
    Not sure what's happening on the back end of things. But the cost of the device to the carrier is not a valid excuse for ETF. Not when they've already made a 75% profit on the device even with the consumer signing a two year contract (not to mention the huge profit from the consumers buying a device from them without signing).

    I got no trouble with "for profit" companies wanting to make, well, a profit. But I DO have a problem with them using draconian methods to strong arm consumers into staying with them through outrageous ETFs. Especially when they mislead the consumer... No, blatantly LIE to the consumer saying that it's to subsidize the cost of the phone when they've already made 75+ points on the deal at the point of contract.
  • TMM · 2 weeks ago
    Are you retarded??? What are you talking about? Carriers don't make any profit on the handset sale, they lose money. Heard of a subsidy? AT&T takes a $400 loss on the initial sale, Verizon probably takes a $300-$350 loss on the droid. Non-feature phones incur a loss of $100-$200. Since monthly bill higher with advanced device due to data plan, carrier will pay a bigger subsidy. Average bill at AT&T is $50 for regular devices and close to $100 month for iPhone. That's why VZ raised the ETF.
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  • prowse · 3 weeks ago
    Fuck you, spammer
  • AndrewBrooman · 3 weeks ago
    I don't think the ETF is too egregious. One easy way to put it is like this: Cost of Phone: $599; 2-year discount: $400; 2-year price: $199; terminate early and you owe us the $400 discount prorated.

    However, I don't think the proration is fair; it should be $400/12 = $33/mo not $10.

    What we really need to focus on is fees like $0.20/message, especially on unsolicited inbound.
  • prowse · 3 weeks ago
    Agree with the SMS raping change - it should be blowjob-good, not rape-bad for SMS and MMS - we somply should not be charged for it (OK, maybe 1 dollar per month for full SMS/MMS, but that is it) We need to focus on it ALL. Not just SMS/MMS. This should be a WAR, not a series of battles one at a time (problem with Americans). Lobby congree every friggin day with this nonsense. ETF charged over 50 dollars for any carrier or any phone is insane.
  • A1 · 3 weeks ago
    Lucky we all still have Cellswapper.com - gets you out of any contract or early termination fees.

    http://www.cellswapper.com
  • prowse · 3 weeks ago
    Looking at Obama's campaign promises - one of them clearly states he will look to get Cellular companies to C & D their pratcie of early cancellation fees of anything over 50,00 US. Where is this going, Mr. Pres?
  • JimD · 3 weeks ago
    They're obviously trying to make a buck wherever they can... I can't blame them, but it's still cruddy of them.
  • alp · 3 weeks ago
    This increase is on Droid phones. Early termination fees has

    increased

    to $350. Even if you are in the last month of your contract you will have

    to pay $120.

    It make it harder to capture the Iphone market with this rate

    increase.

    Don't buy!!


    http://www.verizonpathetic.com/lawsuits.html

    http://www.verizarape.com/sort.php?type=top
  • Tower Decker · 3 weeks ago
    So long as the public "requires" that new phones be cheap as possible when buying one, then Verizon is well-within their rights. Good for them! Maybe people will stop and realize, "Oh, maybe all I DO need is this" and not get suckered into buying every shiny, new, pretty gadget that is released. Obviously legitimate gripes with service or billing are the other side of the story.
  • free dating · 1 week ago
    this is really sad doubling up the early termination fee.
  • matrimony · 4 days ago
    thanks for the heads up.