Wireless carrier provider giant Verizon has announced that as of November 15, 2009, those who get a one or two-year service agreement and use an "advanced device" will be subject to a whopping $350 ETF (Early Termination Fee) if they cancel early.
"Advanced Device" in plain English: Smartphone. If using a non-Smartphone, you don’t have to worry about this.
The exact verbiage from Verizon is this:
Beginning 11/15/09, customers purchasing an Advanced Device with a 1 or 2 year service agreement will be subject to an ETF of up to $350 if they disconnect service prior to the minimum term. The $350 ETF will decrease $10 for each month of service completed.
If you’re asking, "So what was the previous ETF?" The answer is $175 – which was already a snow job to begin with.
What’s the justification for the ETF increase? Answers vary. Some say it’s Verizon attempting to keep people from buying a high-end smartphone, immediately cancelling service then hocking the phone on eBay for a quick buck. Others believe it’s Verizon’s way of keeping you locked in, because with an ETF so high it costs too much to cancel.
Whatever the reason, the ETF increase just plain sucks.
What Verizon is saying is that if there is even the a remote chance you might have to cancel before your contract is up, then don’t subscribe to us in the first place. This sounds like Verizon’s problem and I hope their strategy ends up working out for them…meaning fewer overall subscribers. To me it sounds like a foolish strategy given the state of the economy.
I think the termination fee is pretty reasonable. They are heavily subsidizing the costs of these phones. What exactly sucks about a business recouping their costs? It is just a form of financing. People need to grow up and realize their are consequences to their actions. Its not as if someone forces you to sign the contract.
And why would Verizon want customers that keep jumping from network to network? Why would you have to cancel?
In a nutshell, why would they NOT charge the termination fee? To be nice and cool like that?
I absolutely agree with Brian.
I use at&t. But just like Brian said people need to grow up. This isn’t a trip to Mac&d’s where you cancel your cheeseburger & fries order and get your money back just so you can go to BK because the fries are better there.
I completely understand what David is saying it sucks with this current economy, its going to make people definitely think twice about signing a contract with them.
When i canceled my contract with Verizon I paid a EFT of $139.00 without complaining. Im in business also, and if Verizon as to lower the EFT or even remove it, its a fact people would use it and abuse it and they Verizon would be bankrupt. Thats the society we live in this day and age, to many spoiled, self centered, instant gratification addicts.
On the other side of the coin and digressing a little, Verizon could be doing it because the iPhone is kicking their buts and they are setting themselves up for the droid http://www.droiddoes.com.
cheers
Josh
Not all people buy a high-end phone with the intentions of selling it for a quick buck. Some issues arise in a person’s life which is out of their control, like loosing their job, getting sick, etc. which require them to make changes in their lifestyle. Verizon is making a big mistake by punishing high-end users with a higher termination fee, in fact I think it is discrimination. These high-end users already pay a higher monthly fee to even use their phone. So in reality, they are getting zapped twice!
Well my view is that there is no earthy reason whatsoever to charge an early terminaition fee.
Do you get charged to cancel your credit card due to the company’s predatory practices, or the newspaper (if you still get one) or a magazine subscription? Who said the phone companies can provide a refurbished phone if your new one dies in a couple of days. It was only Government’s intervention that provided legislation is the nly reason here in the US we could transfer phone numbers to another carrier – the carriers didn’t have the vision to allow that.
The phone cartriers practices are outrageous in the opinion of right thinking people who have not been brainwashed.
Your comparisons are very weak to say the least…
Credit card – A credit card is not linked to a contract where you are bound to the terms and conditions for a contracted period of time. You can cancel whenever you want.
Newspaper/magazine subscription – Seriously? You are comparing a phone/carrier contract to a newspaper subscription? The absurdity of that comparison is quite mind boggling.
If you don’t like the terms and conditions set forth in a contract, don’t sign it.
Who wants to buy one of their feature locked smart phones just to have to hack to make all the features work?
How in the world could Verizon possibly justify Raising their Wireless Cancellation Fees $350.00? Nobody should sign a contract that has such an extreme penalty! When will companies learn that this type of cooperate greed is indeed just wrong and not American at all.