Verizon raises Early Termination Fee to $350 for smart phones

Discussion in 'Current Events' started by Grimace, Nov 4, 2009.

  1. Grimace macrumors 68040

    Grimace

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    with Hamburglar.
    #1
    Wow. Droid, and all of the other phones deemed "smart" will be tied to an ETF of $350 after November 15th.

    You thought $175 for an ETF was bad, now the ETF costs more than the PHONE!
     
  2. Consultant macrumors G5

    Consultant

    Joined:
    Jun 27, 2007
    #2
    Verizon will probably add data transfer limits if they have the iPhone.

    Note that iPhone, 2.5% of market, uses 50% of mobile traffic.
     
  3. alphaod macrumors Core

    alphaod

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    #3
    More the reason not to switch to Verizon.
     
  4. Unspoken Demise macrumors 68040

    Unspoken Demise

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    #4
    Just throwing this out there:
    Maybe they are increasing the ETF NOW, so when the iPhone comes to them, they dont get that BS where people buy, it and cancel 31 days into contract for another company.

    Its just a thought. Maybe its a preemptive strike?
     
  5. Grimace thread starter macrumors 68040

    Grimace

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    #5
    I think Verizon also wants to charge $15 more for those using Exchange accounts.

    Some day...we will have affordable plans...
     
  6. rdowns macrumors Penryn

    rdowns

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    #6
  7. Teh Don Ditty macrumors G4

    Teh Don Ditty

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    #7
    I sadly seeing other carriers adopting this policy. It's in preparation for them switching over to LTE (amongst other things).

    A real shame. Verizon has outstanding service on Long Island (IMHO) and trounces AT&T in every single way.

    EDIT: Wow. An extra $15 for exchange email?!?!?! Are they f**king high!!?!?
     
  8. rdowns macrumors Penryn

    rdowns

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    #8

    When I lived in Queens, Verizon was the worst. They did work well on LI though.
     
  9. aristobrat macrumors G4

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    #9
    Verizon has been running those "Buy One Blackberry, Get One Free" campaigns for awhile now. From what I read on Engadget, a lot of people were signing up for a second plan (to get the free BlackBerry), terminating it, then selling the BlackBerry on eBay. The new, more expensive ETF will put a big profit crimp into the plans of people trying to do that.

    As for Verizon charging $15/extra for Exchange, that's only for business accounts, and at one point, AT&T was doing the same thing. Consumers don't pay extra for that.
     
  10. jmann macrumors 604

    jmann

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    #10
    They have done this forever. Ever since the blackberry. They want $44.99 instead of $29.99 for the blackberry plan with enterprise support. It's a rip off. They also make you pay $20 a month for a regular phone to get push email.
     
  11. rdowns macrumors Penryn

    rdowns

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    #11
    That's not what the InfoWorld article is saying.
     
  12. jmann macrumors 604

    jmann

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    #12
    That's wrong, I'm sorry. I worked at verizon, and anyone wanting exchange had to pay the extra $15. It sucks, but that is just verizon.
     
  13. Grimace thread starter macrumors 68040

    Grimace

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    #13
    Many universities run Exchange, and so students (consumers) would be paying extra.

    At least with the iPhone, you can run an exchange account for free! There is the corporate data option (which appears to be identical but billed differently) so AT&T gives the option, but doesn't restrict usage.
     
  14. aristobrat macrumors G4

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    #14
    Here's a Boy Genius recap of it.

     
  15. Adam0306 macrumors regular

    Adam0306

    #15
    Or it could be in preparation of the next carrier specific launch so that it won't be another episode of everyone leaving like they did to get the iPhone.
     
  16. Tilpots macrumors 601

    Tilpots

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    #16
    From what I understand, that's the reason for the upped termination fee. People were making lots of money buying the phones, canceling the contracts, and then selling the phones for profit. Since Verizon paid a lot of money to subzidize the phone, they want to make sure they're the ones profiting.
     
  17. Consultant macrumors G5

    Consultant

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    #17
    Maybe their "smart" phone sucks so bad they have to raise termination fees to make some money from the people switching to the iPhone.
     
  18. aristobrat macrumors G4

    Joined:
    Oct 14, 2005
    #18
    Maybe. So they're doubling the ETF for smartphones, but they're also doubling the monthly ETF reduction. (i.e. your ETF used to go down $5/month, but for the smartphones with the new ETF fee, it'll go down $10/month).
     
  19. savoirfaire macrumors 6502

    savoirfaire

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    #19
    I wonder why they stopped at $350 rather than just going for the full $1K? :rolleyes:
     
  20. jaw04005 macrumors 601

    jaw04005

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    #20
    I don’t understand why they don’t just all adopt an adjustable ETF thats price goes up or down depending on which phone you choose (as dictated by retail value).

    Seems fair to both sides. You buy a smartphone at Verizon that retails for $499, but sign-up for a two-year contract and pay $299. You have $200 that should come off your contract over the next 24 months ($8.33 per month).

    So, if you cancel your contract after 1 year, you owe Verizon a $100 ETF.
     
  21. pukifloyd macrumors 6502a

    pukifloyd

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    #21
    $350 is ridiculous...

    these companies are insane...
     
  22. aristobrat macrumors G4

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    Oct 14, 2005
    #22
    How so?

    Manufacturers like HTC, Apple and Moto are charging the wireless companies more and more for these devices, and then you have idiot customers that are purposefully scamming the wireless companies to get these devices for essentially half price, and then reselling them for a personal profit.

    Something had to give in that situation, and it sure as heck wasn't going to be the manufacturers lowering their prices!?
     
  23. Nermal Moderator

    Nermal

    Staff Member

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    New Zealand
    #23
    My telco's highest ETF is ~US$1500 :eek: (that's for a huge business plan).

    Personally I'll continue to just buy phones outright and not sign term contracts :)
     
  24. aristobrat macrumors G4

    Joined:
    Oct 14, 2005
    #24
    Ack, like pay 3x the contract cost, just to avoid the contract? :eek:
     
  25. Nermal Moderator

    Nermal

    Staff Member

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    Location:
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    #25
    My idea was to sign up, use the phone for 2-3 months until I got back from the US, then switch to prepaid since it's cheaper and I don't make too many calls. As it happens, I've decided to stay on a plan because it's more convenient than topping up and I like having "free" calling.

    I'm not kidding when I say I don't make many calls though; the subsidy on my cheap plan is only about US$50 so I'm really not too worried that my phone wasn't subsidised :p
     

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