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FCC and verizon wireless early termination fees

Commissioner Mignon Clyburn
Commissioner Mignon Clyburn
Photo FCC Website

The FCC is questioning Verzion Wireless over high Early Termination Fees or ETFs. Mignon Clyburn an FCC commissioner has responded to Verzion Wireless defense to ETFs.

On Wednesday, Commissioner Clyburn released her response . "No longer is the claim that ETFs are tied solely to the true cost of the wireless device; rather, they are now also used to foot the bill for 'advertising costs, commissions for sales personnel, and store costs.'"

Currently, Verzion Wireless users of  smartphones and advanced device  pay ETFs of $175 and the new fee will be $350. This major price increase alarmed the FCC and have asked Verzion to explain their pricing plans. A BlackBerry Storm 2 costs $200 with a two-year contract and $539 without a contract or subsidy.

Verizon states an advance devices run Windows Mobile Smartphone and Pocket PC Phone Edition operation systems.

Verizon Wireless pricing structure offers a substantial discount from their full retail price," the carrier said in a written response to the FCC. "By reducing up-front costs to consumers, this pricing lowers the barriers to consumers to obtaining mobile broadband devices. It thus enables many more consumers, including those of more limited means, access to a range of exciting, state-of-the-art broadband services and capabilities."

 

Comments

  • Annie 4 years ago

    It's great the FCC is looking at this before Verizon hurts people's credit.