So Verizon is DOUBLING there ETF ...

RafRol · 11/04/2009, 08:20 PM

As many have heard by now, Verizon Wireless will be charging $350 for terminating any new contract that is signed starting 11/15/2009. This will be a prorated ETF ($350 less $10 per month completed) and only applies to 'Advanced Devices'.

An advanced device will be any PDA phone. There is a small possibility that this will apply to any 'Enhanced Multimedia' devices (e.g. Samsung Rogue) as well. We all know what a PDA phone is. For those that never heard of an 'Enhanced Multimedia' device, this is what Verizon Wireless has internally classified as ... well... enhanced in it's capabilities (e.g. web browsing, music, video, etc). These devices fall in between a PDA phone and a basic voice phone. Verizon requires that you get a data bundle on these 'Enhanced Multimedia' devices in similar fashion to their PDA phones.

So if you're considering making the switch to Verizon (Pre, Droid, etc.) or, if you are currently with Big Red and are waiting to upgrade, be sure you know what you're doing when signing on the dotted line. Seriously take into consideration how much it will cost you over the course of your contract period (not just the monthly plan, but ALL the fees). And investigate network coverage where you'll be using your device the most. Make sure you're going to be happy with your device during your contract period. Research, research, research.

I'm afraid that AT&T may follow in there footsteps, at the very least, they are paying attention to see what type of reaction this will create. I'm hoping that Sprint doesn't follow suit.

Verizon Wireless is setting a very bad precedent in the U.S. cellular industry. Let's hope we don't end up like Canada (AND I HAVE NOTHING AGAINST CANADIANS; props to my canucks!

).

The Phone Diva · 11/05/2009, 12:35 AM

I agree, HORRIBLE precedent!! It's a roundabout HORRIBLE way of locking you down to them and them alone. People will be afraid of that $350 even if they aren't satisfied with or can no longer use Verizon's service for whatever reason.

palandri · 11/05/2009, 12:47 AM

Spend a couple of hundred extra, buy the phone outright and get a 30day and out contract...or are they eliminating that also?

The Phone Diva · 11/05/2009, 12:57 AM

I'd be tempted to do that too because the cost of the phone plus cancellation will be about $500-$600 and usually that's the full price of buying outright also. Unless they're going to force contracts on those who buy outright too.

ryleyinstl · 11/05/2009, 10:45 AM

I don't think we will end up like Canada any time soon. The Canadian cellular market is an entirely different beast. With a population less then that of California but 20 times the area to cover things are just going to cost more, period.

Quote:

Originally Posted by RafRol

I'm afraid that AT&T may follow in there footsteps, at the very least, they are paying attention to see what type of reaction this will create. I'm hoping that Sprint doesn't follow suit.

Verizon Wireless is setting a very bad precedent in the U.S. cellular industry. Let's hope we don't end up like Canada (AND I HAVE NOTHING AGAINST CANADIANS; props to my canucks!

).

grndslm · 11/05/2009, 09:20 PM

Personally, I like the idea.

Every device should be free, tho.

Could you imagine walking into a store, having to put nothing down, so long as you commit to a 2-yr agreement?? The problem with Sprint now is the absurd prices of phones, ESPECIALLY before MIR. If you just let anybody with decent credit walk away with the device, I think they'd be more loyal to you, more willing to stick thru the whole 2-yr agreement, and obviously too happy to stop talking about you, so they'd bring in new customers too.

If Verizon is doing this... I don't see how Sprint would be able to survive without following suit. If every company in this industry is letting phones go for free... Sprint simply wouldn't be able to compete with the higher sticker price. Nobody would come to Sprint, because everybody expects to make it the whole 2-yrs (therefore, not even understanding the terms, like ETF), so obviously free is better.

If the device isn't free... then I really don't see the benefit. Verizon is supposedly doing this because of their BOGO offer with Blackberries. Makes perfectly reasonable business-sense to me. Not something I'm thrilled about, but totally understandable.

apron · 11/12/2009, 08:18 PM

Scathing commentary by David Pogue in the NY Times Technology section; Makes me feel better about choosing Sprint over Verizon!

Verizon: How Much Do You Charge Now? - Pogue’s Posts Blog - NYTimes.com

Kamen · 11/13/2009, 11:16 AM

Wasn't there a class action lawsuit not too long ago in regards to outrageous ETF's?

grndslm · 11/13/2009, 04:37 PM

I don't think it was about "outrageous ETFs" but unfair ETFs, or essentially, ones that weren't prorated.

If the MSRP for a phone is $600-800, then a $400 ETF doesn't seem that outrageous. As long as it's prorated, they prolly won't have any legal issues.

The Phone Diva · 11/13/2009, 04:53 PM

$110 at 23 months??? I don't think it's prorated PROPERLY. Not only that but $350 IS outrageous. The $600-$800 is inflated by the carrier.
But even then not all of the smartphones are that much, some are around $500. Not only that but, smartphone customers already pay way more on their plans.

This is clearly a move to scare people into staying with Verizon. There can be various reasons why you need to change carriers, not just to get another hot phone. This is why I buy phones away from any carrier.

Achill3s · 11/13/2009, 04:59 PM

ouch on new price. FAIL!

grndslm · 11/13/2009, 08:51 PM

Quote:

Originally Posted by The Phone Diva

$110 at 23 months??? I don't think it's prorated PROPERLY. Not only that but $350 IS outrageous. The $600-$800 is inflated by the carrier.
But even then not all of the smartphones are that much, some are around $500. Not only that but, smartphone customers already pay way more on their plans.

This is clearly a move to scare people into staying with Verizon. There can be various reasons why you need to change carriers, not just to get another hot phone. This is why I buy phones away from any carrier.

Sprint could shine right now if they offered a fairly prorated ETF to make ALL phones free... like back in the day. It would definitely make Sprint look incredible. They should've been doing this for the past year.