Leaving Verizon Wireless to get more expensive Nov. 15
Filed under: Shopping, Technology
Leaving your wireless carrier can be an expensive undertaking, and starting Nov. 15 it's about to get more expensive for users of smartphones like the Motorola Droid, Blackberry Storm 2 and other "advanced devices" on the Verizon Wireless network. While employees have been ordered not to talk to customers about the change, starting on Nov. 15, the Early Termination Fee (ETF) for these devices will increase from $175 to $350. According to a leaked document the higher ETF, "fairly reflects the higher costs associated with offering feature rich advanced devices to customers at attractive prices."
Early Termination Fees, or ETFs as they are commonly called, are a continual player in the of a love-hate relationship consumers have with cell phones. When consumers get a new phone they love the discount that comes from signing a two-year contract, but when a cool new phone, like the iPhone, comes out they hate having to pay to break the contract.
Even though we generally despise fees and have a special feeling of spite for fees that get raised, given the increased retail cost of new phones like the iPhone, Motorola Droid and others this increase was inevitable.
For example when you sign a new two-year contract for the hyped Motorola Droid on Verizon's network you qualify for a discount of $360 with an additional $100 in discounts if you use a New Every Two agreement on at Verizon.
So, in exchange for two years of voice and data payments, Verizon is giving you a discount of between $360 and $460. In comparison, "feature phones" like the LG Dare often receive a subsidy of -- $200.
If you aren't happy with the new fee for "advanced devices" you can always choose to pay more when you get your phone; but given that the $350 ETF decreases by $10 every month and that's about the amount you save by signing a contract you may be better off taking your chances and getting the discount now.
Keep in mind that if you have a calling plan over $49.99 you are eligible for a subsidized phone on Verizon after just one year with a contract renewal.
Verizon Wireless was contacted, but did not respond for comment.



Reader Comments (Page 1 of 6)
11-04-2009 @ 8:23PM
Annie said...
I switched to verizon when they said they could combine my land line, cell phone, internet and TV with Verizon FIOS. Sounded like a good deal, introductory offer at $119.00 a month. Well my last two bills were over $190.00 - I never received the introductory offer and as soon as my contract is up I'm canceling because I hardly make more than 7 or eight calls a month. I hate liars...when I brought this up in letters and phone calls they would keep giving me phone numbers and those people gave me other phone numbers. although I love the DVR feature I can't stand a business that lies.
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11-05-2009 @ 2:47PM
kmvproductions said...
I'm sorry to tell you but the satellite/dish companies are no better. Please google/YouTube these companies before doing business with them. My husband got suckered w/ DirectTV. Same old story: Intro price no string attached we were told, when we decided we didn't like it 1 week into having it, DirectTV said we'd have a cancellation fee of $450. Something BIG they neglected to tell us. I guess that's what no strings mean to them. We're waiting for our contract to be up 2 yrs later. Oh to add, our box wasn't working, they replaced it and tried to tell us several calls later that we extended our contract by getting a new box that they had to replace because the other box is broken. I would rather pay more money to a cable company that is upfront with costs than this! The last phone call I had with DirectTV I recorded because I'm so sick of the lies they are trained to tell.
Verizon, where in the world do you get off telling your reps not to disclose information that could financially hurt one of YOUR CUSTOMERS??? It's not about customer service anymore. When did America become so greedy?
11-05-2009 @ 5:11PM
angelmunky said...
Verizon residential is separate from Verizon Wireless. "Bundle" billing is supposedly for convenience. Generally, I've always had a favorable experience with Verizon Wireless. However, I never take someone's word regarding contracts and fees. I look over the information myself.
As for DirecTV, you must have misunderstood the fees. The charge for termination is $12.50 per month left on your agreement. If you agreed to a 2 year commitment, that would be a total of $300. The additional fees would be based on neglecting to return your receivers, which is $150 for a standard device. However, within 7 days of your activation, those charges do not apply unless you went through a private company. And the customer service is contracted out. It is not an actual DirecTV employee, until you're talking to someone who can cancel your account.
11-09-2009 @ 8:26AM
Rachel said...
Annie...I don't have Verizon for cell phone...but I did bundle my internet, tv & home phone into a Fios package. After the contract was up they "unbundled" it and the price skyrocketed. I called and told them if they couldn't do better I was taking my business elsewhere. Since they didn't want to lose my business they rebundled me and gave me a bunch of stuff for free for a while. If you like the products get somebody on the phone that will listen and take care of you. They really can't afford to lose anybody!!
Good luck!
11-09-2009 @ 8:27AM
Vonnie said...
Hey Annie...... You are right on the money. I still have cablevision and Verizon keeps calling me and sends so many flyers wanting me to switch to their cable services and switch from my wireless service that I have been with for so many years but now since I came across this news.......I'M STAYING RIGHT WHERE I AM!!!!!! :)
11-04-2009 @ 8:41PM
Gabbie said...
I HATE verizon. It sucks. I've had it for four years. They charge you everytime you SEARCH not BUY a ringtone and they charge you for 'Data'. WTF is up with that? HATE verizon. HATE IT.
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11-09-2009 @ 8:25AM
Sabrina said...
I totally agree - Verizon sucks! Can't wait to get out from under them!!!
11-09-2009 @ 8:19AM
Michelle Robinson said...
VERIZON SUCKS BIG TIME! I was with Altell and when Verizon bought them out about 4 months ago my bills have went up and up. This time it was 588.00 i refuse to pay it. They said that I went over my 2000 minutes, but you know how I went over the 2000 minutes? They charged me for 800 calls, they charged me for my friends numbers, they charged me for other verizon wireless customer calls, and when I went to verizon store and asked them about it, their response was we can't do anything about it. I told them I could do something about it....they can take the bill, ram it up their ass, and shut my phone off! They did 3 weeks later. But I absolutely REFUSE to pay this bill!
11-08-2009 @ 1:09PM
Leigh said...
Gabbie,
Do you get internet for free on your computer? "data" used to take away from your minutes. Now, you have the option of purchasing a plan that include unlimited data and get to use your minutes for talk-time. If you don't wish to use data at all, you are more than welcome to have those features blocked.
11-04-2009 @ 8:39PM
Sarah said...
This is such BS. These devices don't cost anywhere near this much and if the wireless carriers didn't spend so much energy trying to limit which device you could use with which carrier, they wouldn't need to save consumers anything. If you went out on the market to buy a Blackberry Bold and could use it with any carrier it would cost half of what the "restricted carrier" prices it at, maybe even less. Considering the necessary nature of cell service in this day and age, this should not be allowed. Nor should these early termination fees be allowed unless the carriers are required to lower the contract terms to one year or less.
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11-04-2009 @ 10:13PM
verizon sucks! said...
Verizon's claim to having a signal anywhere is BS. I have NO signal in places where I used to have a full signal with T-Mobile and Nextel/Sprint. Also with Verizon if your phone gets damaged and won't work, their phones do NOT have SIM cards so you can't even just get another phone off of ebay or elsewhere, you literally have to buy another expensive phone through Verizon AND sign up for another 2 year contract!! Total BS!! HATE VERIZON!! Can't wait till our contract is up in December!!
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11-05-2009 @ 8:48AM
misty said...
I buy almost all my phones for Verizon on ebay. However when my last 'ebay' phone fritzed I called Verizon and they gave me the 2 year contract price for a new phone even though my contract was not upgradeable until december 2010. I was not even eligible and they did it just to be nice. They are not getting any extra money out of me by doing this. Verizon has always gone above and beyond to help me and make it worth my while
11-06-2009 @ 11:20AM
gutsychick said...
I've had Verizon service for several years now. Over the past 15 months, our reception is gotten worse. Multiple phone calls to Verizon with no improvement. I agree, they claim to have all these areas of coverage, but I have to stand outside on my deck to even stand a chance of getting a signal.
Once my contract is up, I'm looking for a phone carrier that gives me coverage at home. Don't want or need a landline....all that I ever got with the landline was sales calls. Forget that crap!
11-05-2009 @ 4:07PM
Me said...
Oh I totally agree, they are ridiculous. I cannot wait to switch when my contract is up. Also I get no signal at my home and have complained, do you think the customer service rep even passed on the info......no! they do suck!
11-05-2009 @ 5:40PM
j couch said...
I GOT VERIZON IN TITUSVILLE FL WHILE AT MY DAUGHTERS. WHEN I GOT HOME I COULD NOT GET A TOWER. HAD 14 MINUTES TIME USED. GOT A BILL FOR NEARLY 300. CALLED B4 TIME WAS EXPIRED TO CANCEL. THEY SAID THEY WOULD INVESTIGATE. TOLD THEM TO JUST CANCEL WITH NO PENALTY. VERIZON TOWER IS 9 MILES FROM HOME AND I GET ALL CALLS DROPPED, EVEN CALLS TO VERIZON.
VISITORS COME WITH T-MOBILE PHONES AND THEY ARE ON ROAMING AT MY HOUSE. BET YOU CAN'T GUESS WHAT TOWER THEY ARE USING FOR ROAMING.AND GETTING EXCELLENT RECEPTION. YA GOT IT!!!! THEY ARE ON THAT DAMNED V E R I Z O N TOWER THAT I CAN'T GET SERVICE FROM FOR MY VERIZON PHONE.
THEY SUCKIN' IT UP FOR ROAMINF CHARGES!!!!! GO FIGURE.
11-09-2009 @ 8:19AM
aml said...
That's the first time I've heard of a verizon customer complain that their reception was BETTER with T-Mobile! Granted, it's not perfect...but T-Mobile can't hold a candle to Verizon here in Central Jersey
11-09-2009 @ 8:20AM
Ana said...
I AGREE WITH YOU SABRINA AND THE REST OF YOU ALL THE TOWER NEAR MY HOUSE IS 4 MILES AND I CANT ANY ANY CALLS INSIDE MY HOUSE I HAVE TO GO OUT SIDE MY HOUSE TO MAKE CALLS AND I REPORT IT TO VERIZON THEY TOLD ME TO GET IN TOP OF ROOF OF HOUSE SO I CAN MAKE CALLS ALL MY CALLS ARE LOST ALL THE TIME AND IM TIRED AND IM MAD ABOUT ALL OF THIS.
11-04-2009 @ 10:13PM
BOND....JAMES BOND said...
From day one these cell phone deals have been the worst consumer product out there.....let's see if I can get this right.....in 1969 we talked to men on the moon yet my high tech cell phone drops a call 5 miles from my house in 2009.....boy i'm so dumb my head hurts
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11-05-2009 @ 8:48AM
Hey Marie! Howdy said...
Good comment! Hope your head is better! I look at it this way since you brought up 1969; in 1969, a cell phone was totally unheard of. We went about our business and if someone called and we weren't home, well, they'd just have to call back. People got along for MANY years without cell phones and yet now, there are CHILDREN who have them! If a teen has one (like mine - she pays for it too) then you never see them as they are in their room texting away to friends for hours on end. I tell her all the time, lose the phone a while and we'll drop you off with friends at the movie theatre. Kids, as well as adults have to realize that there was indeed life before cell phones, and the world still will and does go on. BTW -- Where I live, the carrier is Cox Communications. If you have them in your area, I HIGHLY recommend them. Phone-Internet-Cable TV "bundles" are very inexpensive and you can also get DVR and other things. The Customer service can NOT be beat. Amazingly, I do not have a cell phone and my life still goes on.
11-04-2009 @ 10:13PM
Janet said...
Oh the whining! Some of us don't have a problem with this because we don't have to switch phones every 3 months.....you sign a contract and stick with it!
I love Verizon, and with the exception of the very deep canyons and high mountainous regions, I get a perfect signal every time.
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