An internal document has been leaked confirming that Verizon Wireless will raise the ETF on customers that purchase what it classifies as an “Advanced Device” (smartphone) from the carrier to $350 beginning on November 15th. The ETF will decrease by $10 for each month the customer remains with the carrier during the 1 or 2 year agreement.
The increase will apply to all smart devices sold by the carrier and is seen as a way to retaliate against customers that would work the system set up by the carrier with its frequent BOGO (Buy One, Get One Free) offers (e.g. BlackBerry devices) and sell smart devices for profit by taking out a second line, acquiring another device, then paying the $175 ETF in order to profit later on the sale of the second device on auction sites, making the ETF increase a deterrent against the above practice.
Customers signing up and purchasing smartphones before the 15th will be grandfathered into the old ETF policy, with the $350 ETF not applying to Corporate Liable lines of businesses with a Major Account Agreement and Enterprise Customer profile, Government and Telemetry account types.
Read More for Verizon’s internal explanation of the change.
ETF Policy
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Updated:
11/03/2009 16:35:51|
Policy & Eligibility
If a customer cancels service early or if Verizon Wireless terminates their service for good cause, then the customer is charged an ETF (Early Termination Fee) per line of up to:
$175, or $350 (if the customer’s contract term results from the purchase of an advanced device after 11/14/2009).
Note:
The up to $350 ETF for advanced devices is not to be discussed with customers prior to the 11/15/2009 launch. In the event a customer receives a Direct Mail Letter which references the up to $350 ETF and contacts Verizon Wireless, Representatives can assist the customer and explain the up to $350 ETF is for advanced device purchases effective 11/15/2009. The higher ETF associated with advanced device purchases fairly reflects the higher costs associated with offering feature rich advanced devices to customers at attractive prices and investing in our network to support these devices.
The $175 ETF decreases by $5 a month and the $350 ETF decreases by $10 a month for each full month the customer completes.
The up to $350 ETF does not apply to CLEU (Corporate Liable End User) lines of businesses with a MAA (Major Account Agreement) and ECPD (Enterprise Customer Profile Database) profile, Government and Telemetry accounts.
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So if you get a phone before the 15th, will your terms change on the 15th? Or will you be grandfathered in with your existing ETF?
You will be grandfathered before the 15th. The new terms go into effect on that date.
so i can’t use this as an excuse to end my contract early without ETF?
wow i wont be upgrading. too risky here in this economy.
Wow. If all the carriers jump on this, I think the FTC might take a look. I certainly won’t lock in for that kind of ETF ever.
This could cause a surge in Motorola Droid returns, as people rush to try out the device before the ETF hike. Considering the short supply, it just got a little shorter at least.
If you want a Droid, consider lining up hours before your local Verizon Wireless opens…
Sheer madness!!
An overreaction gone overboard, hence a hasty policy,
all VWZ had to do, was to ad a clause in the contract of the “BOGO”, instead, they are throwing out the Baby with the bathwater!
After two years:
$350- (12 months X $1O X 2 years)=> Balance of $110 ??!
Thank You
don’t forget the carriers pay the manufacturers a lot more than what the consumer pays for these devices.If you cancel early, they lose money….
That will make prepaid carriers business surge. T
[...] As expected Verizon has begun its new ETF policy on what it considers “advanced devices” which not [...]
[...] today, Verizon Wireless will now charge customers an ETF (early termination fee) of $350 for advanced devic… and decreasing by $10 each month a customer remains with the company during their 1-2 year [...]