Verizon Wireless Prorates Fairness In Prorated ETFs
from the gee-thanks dept
Verizon Wireless got a bit of praise a few months back when it announced it would start prorating the early-termination fees it charges customers who break their contracts before they expire. Operators use ETFs to ensure they recoup the subsidies they pay to make handsets cheap for users to buy, but the ETF doesn't drop as subscribers get closer to the end of the contract, which seems a bit unfair. Now, Eric writes in to point out that Verizon's finally released the details of the ETF changes, and as you might expect, they're not quite as fantastic as people would have hoped. The changes came into force Nov. 16 -- and will only apply to contracts signed on or after that date. Furthermore, the ETF only drops by $5 per month rather than proportionally to the length of the contract. While it's a step in the right direction, it seems a lot less benevolent than originally thought, and keeps the deck stacked strongly in the operators' favor. Perhaps a better solution would be to charge an ETF in line with the subsidy on each handset, then prorate that proportionally over the life of the contract.Thank you for reading this Techdirt post. With so many things competing for everyone’s attention these days, we really appreciate you giving us your time. We work hard every day to put quality content out there for our community.
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ETF 'fairness'
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Why dont they cut the crap
Why do they have to subsidize it? isnt that the same as making people who doesn'tt want a fancy phone pay for some other guys fancy phone?
I really dont want to pay inflated prices to pay for someone elses 700$ phone.
The phone subsidy is an excuse for an ETF, not a reason for it.
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Re: Why dont they cut the crap
I really dont want to pay inflated prices to pay for someone elses 700$ phone.
But I really, really appreciate it, this Treo is sweeeet :-)
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Re: Why dont they cut the crap
I like it better the way it is, even if there are some downsides. BTW, most of the cell phone carriers will let you out of the ETF, if you are canceling the service because you are moving to an area that they don't serve.
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Re: Re: Why dont they cut the crap
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ironic
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Re: ironic
So, it depends on how pissed you are and whether it's more worth it to keep your mouth shut for the next two years or start yelling. You have plenty of choices as a consumer - you just need to exercise them. Confront them on their contracts. Work to get a court to release you from it claiming it's unjust. Get the media involved - that'll get their attention. Bring negative press. If you're a thorn in their side it'll be more worth it to release you from your contract than to enforce it.
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Re: Re: ironic
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Re: ironic
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uhm yeah....
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Re: uhm yeah....
People complain - especially on the net (it's FULL of whiners). It doesn't mean shit. You ask enough people about their experiences with X-Company and you're about guaranteed to find a group who has some bullshit to bitch about.
Besides, most of the whiners on the net don't know their asses from a hole in the ground. They'll complain about ANYTHING just to get some attention.
Google the term [x] sucks. That's good. lol.
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month-to-month
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Whiners
The reason your initial bill was so high was because you pay a month in advance, so, you payed for the 11 days from the 1st to the 12th, then you payed for the next month. You're not going to end up paying for any service you don't get the chance to use.
Taxes are fully disclosed in the service agreement, and you're an idiot if you blame Verizon for the taxes the gov't charges (surcharges are another matter, but they're also disclosed).
In most markets, you're handed a receipt with the estimate of the first bill printed right on it.
And no, I am not, and never have been a Verizon employee. I have occasionally worked as a technical contractor in VZW retail locations, and have witnessed first hand the very complete discloser that takes place when a contract is signed.
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Re: Whiners
And that's how you fight back.
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Re: Re: Whiners
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Re: Whiners
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Perhaps a better solution would be to charge an ETF in line with the subsidy on each handset, then prorate that proportionally over the life of the contract.
Why don't they just loan us the money or rent-to-own the phones. I'm sure it would drive more people to use cheaper phones and cut down on the bling, but hardware is getting cheaper for this technology. It's not quite like the start up days of cell phones years ago. It's getting a bit harder to justify all the tech (i.e. camera, mp3, pda ...) when most people would just like the phone to work as a phone.
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Phone subsidies
As an answer to Ironics question on taxes: Verizon didn't charge the taxes, the government did. The reason they're not a part of your contract is that your contract is with Verizon, not the government. I understand that wireless taxes can suck. The 3 states that have the lowest tax are Mass, New Hamphshire and Oregon and the highest are; California, New York and Texas.
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cheap phones
I KNOW IT IS A PREPAID BUT IT IS THE SAME PHONE. THE ONLY REASON I DIDN'T GET THE PREPAID WAS THE WEEKEND MINUTES WERE NOT FREE.
I FINALLY GOT THE 8300 WITH 1 YEAR. AFTER ALL THE TAXES FROM VERIZON, MAYBE I SHOULD HAVE GOT THE PREPAID PLAN. THANK GOODNESS IT IS ONLY A YEAR.
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