I believe the government's biggest objection to current ETF's is that they don't bear any relationship to the subsidy.
In other words, ETF's should be different, depending on the phone price vs whatever you pay for it.
Verizon and ATT hoped to avoid federal regulation of ETFs by voluntarily making them prorated by months of service. Doesn't look like that'll work in the end.
Personally I think that if you bring your own phone, there should be no ETFs.
Yup, we have them here. They are called simm only deals and they are 30 day rolling contracts. My brother has one on o2. £30 a month for 1200 minutes and 1000 texts. You can leave at any time giving 30 days notice.
The same contract on an 18 month with a free phone (not iphone and less minutes and texts) is £35 a month so an extra £5 ($10) a month.
I think that is relatively fair. If you supply your own phone you have no 18 month contract, cheaper line rental with more minutes and texts than the contract as they are not subsidizing your phone!