Rumor Mill: Verizon to double ETF to $350 on 'advanced devices'

Verizon Wireless is going to double its early termination fee (ETF) later this month from $175 to $350 for users who purchase an "advanced device," according to the Boy Genius Report blog.

According to the blog, which posted a leaked slide of the policy change, Verizon will institute the new policy Nov. 15. The ETF will go down by $10 per month for each month of service. It is unclear what exactly an "advanced device" is, but it likely refers to smartphones.

If true, the move represents a reasoned measure aimed at protecting the subsidy Verizon Wireless doles out for each of its high-cost smartphones, and likely would deter customers from opening a new line of service, paying for a subsidized device, canceling the line and then selling the device for a profit. Verizon is in the midst of launching several high-profile gadgets, including Research In Motion's BlackBerry Storm2 and Motorola's Droid. Such devices typically sell to consumers for around $200, a price that includes in some cases a subsidy from Verizon of as much as $300.

Verizon spokesman Tom Pica declined to comment.

For more:
- see this Boy Genius Report post
- see this InformationWeek article

Related Articles:
Verizon launches first Android phone, Motorola Droid
Verizon, Sprint roll out holiday smartphones
Verizon confirms new data plans for feature phones

Suggested Articles

The first day of bidding in the Federal Communication Commission’s (FCC) Auction 103 ended its second round with $715,333,400 in bids.

Wireless networks today allow people to communicate through data & voice. With 5G and Wi-Fi 6, wireless technologies are poised for a central role

AT&T’s operations chief said that no matter the outcome of Sprint/T-Mobile's trial, a merger means distraction for both carriers.