updated 12:45 pm EST, Wed November 4, 2009
Verizon to double ETFs for smartphones
Wireless provider Verizon is poised to double its Early Termination Fee (ETF) for contracts associated with smartphone devices. Leaked documents show that it will now cost $350 instead of $175 starting on November 15th if subscribers end their contracts immediately, although each month of the contract served will decrease that fee by $10. While it is not known which devices this new higher fee will apply to, it is likely to be all smartphones offered by Verizon, including BlackBerries and the upcoming Android-powered Droid from Motorola.
Verizon is suspected of introducing the higher ETF to keep subscribers from profiteering by selling their subsidized smartphones to other individuals. It also helps guarantee that these more lucrative customers stay on their contracts and generate profit before they leave the service. [via BGR]