Verizon finally responds to the FCC over increase in ETF price hike
Verizon Wireless recently announced that the company would be increasing the early termination fee for those with smart phones. In response to this action the Federal Communication Commission (FCC) demanded answers from Verizon Wireless on this sudden move. After a period of silence, the company has finally responded back answering the FCC’s questions.
Earlier this month the FCC reached out to Verizon Wireless asking questions about its sudden increase in the early termination fee (ETF). Early last month Verizon Wireless announced plans to raise the ETF from $175 to $350 for smart phone contracts. After about a month of silence, the wireless carrier finally reached out to the FCC in a lengthy letter justifying its actions.
This plan change came about shortly after the release of the smartphone Droid. The Droid is said to be Verizon Wireless’s answer to the iPhone with AT&T. The FCC announced in the past that the commission would be looking into ETF policies as it has been accused by many to be an anti-competitive practice.
According to Phonescoop, in the official response to the FCC Verizon Wireless claimed that the carrier must increase the ETF for smart phones in order to continue providing low up-front costs for the devices. According to the company, even with the price hike in the ETF, the carrier would still lose money if the customer decided to break the contract early.
Another justification offered by Verizon Wireless was that the ETF hike is needed if the company is expected to continue providing a strong broadband network. It seems like Verizon Wireless is advertising its 3G network even in this letter to the FCC. The carrier also indicated that a strong marketing campaign will be in place to ensure that consumers are aware of this price hike. The ball is in the FCC’s court now to make the next move.
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December 19th, 2009
Why the anti-Verizon bias? Twice you close paragraphs with a “finally” statement, as if Verizon was intentionally delaying? They responded to the FCC’s inquiry. They responded when directed.
From my BlackBerry Storm…