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Sat, Nov 21, 2009 - 09:43 AM EST  —  AAPL: 199.92 (-0.59, -0.29%)  |  NASDAQ: 2146.04 (-10.78, -0.5%)

Verizon Wireless set to double early termination fee to $350 on November 15
Wednesday, November 04, 2009 - 02:00 PM EST

Apple Online Store "A new connect has emerged with a few documents and it looks like starting on November 15th Verizon will be charging up to $350 as an early termination fee on 'advanced devices,'" Andrew Munchbach reports for The Boy Genius Report.

MacDailyNews Take: "Verizon's definition of "advanced device" is whatever iPhone-lookalike-not-workalike they're dangling this month (LG Voyager, HTC Touch, BlackBerry Bold, Samsung Omnia, BlackBerry Storm, Motorola Droid) in order to dupe the ignorant.

Munchbach reports, "This new 'improved' fee does have a minute silver lining (if you can even say that): for every month of service completed, the $350 sum will decrease by $10."

Full article here.

MacDailyNews Take: So, should you double your risk on this month's iPhone-lookalike-not-workalike or should you just make the smart choice and get an iPhone? Apple and AT&T Mobility have to be smiling at this news. Verizon Wireless just shot themselves in the foot yet again.

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Nov 04, 09 - 02:05 pm Comment from: Haiku

"Verizon's definition of "advanced device" is whatever iPhone-lookalike-not-workalike they're dangling this month to dupe the ignorant.

Um Yeah Except That
It Isn't Really Their Fault
They Don't Have iPhone

Nov 04, 09 - 02:05 pm Comment from: breeze

Someone's shit scared and determined to stop iPhone migration...

Nov 04, 09 - 02:07 pm Comment from: Amazin1

WOW! That will certainly keep people from making any choice in case it is a bad choice. I know, anything other than an iPhone is a bad choice, so no need for anyone to say it! But seriously, that will make you think twice about being stuck with a POS for two years.

Nov 04, 09 - 02:08 pm Comment from: wiredzen

@Haihu - Um, yes it is their fault they don't have the iPhone, since the turned down the initial offer by Apple.

Nov 04, 09 - 02:11 pm Comment from: 84 Mac Guy

To stem the tide of customers leaving for greener pastures, i.e., iPhone, Verizon will also be implementing the following "customer retention" techniques.

1) When you call to terminate, an ear-piercing noise will come through your phone making you deaf and unable to use an iPhone or any phone.

2) Your final Verizon will contain a bunch of charges for calls to 900 sex numbers that will cause your spouse to divorce you, thereby making you too poor to afford an iPhone.

3) Verizon will have one of the Soprano boys personally deliver your final bill, who will also teach you the multiple uses for a baseball bat.

Verizon's new motto: #1 in customer satisfaction, or else.

Nov 04, 09 - 02:18 pm Comment from: Gabriel

So, basically, if you're thinking of leaving Verizon, you'll want to do so before November 15th.

Wonder if they'll see a spike of departures between now and then.

Nov 04, 09 - 02:21 pm Comment from: Murasaki

I've got Verizon and I'm long past my contract date so.....I'm OUTTA here!

Nov 04, 09 - 02:22 pm Comment from: ajdowntown

iDon't like my customers...?

Nov 04, 09 - 02:30 pm Comment from: R2

This is to stop people from purchasing expensive smartphones at their heavily subsidize contract prices and paying the ETF in order to get the handset cheaper. Something ATT would've been smart to do when so many customers used the same method to rip them off and get cheaper iPhones. Verizon is simply learning from those mistakes and planning accordingly.

If this was to stop customers from leaving for the iPhone then it would be the new standard ETF for every phone.

Nov 04, 09 - 02:32 pm Comment from: AL

Sounds like their new contracts will be 3 years long...

360/36 = 10

On the 36th month the charge is removed so then it is 35 months x $10 = $350

Nov 04, 09 - 02:32 pm Comment from: ajdowntown

iDon't...:

- like my customers
- know how to stop hemorrhaging my customers to the iPhone (might as well punish them for leaving)
- want any new customers
- know a good thing when I see it
- understand why the Storm wasn't an iPhone killer
- understand why the Droid or Storm2 still won't be an iPhone killer
- know what it is like to use data and voice at the same time
- know why Apple is still refusing to give us the iPhone... we only demand a vVerizon sticker on the device, Vcast, and $3 ringtones!

Nov 04, 09 - 02:37 pm Comment from: jbooo

@ R2
Wrong, why target the "advanced phones"? Because those are the revenue generating phones, like iPhone. They do NOT want to loose their top paying customers to AT&T;. Verizon seriously miscalculated Steve Jobs and his luxury priced items that generate MORE income per purchase than ANY other phone manufacturer. PERIOD. Would you leave if you had to pay 350.00 to terminate? NO, I think not. This is lock in to buy them some time until they can gauge Droid uptake. PERIOD

Nov 04, 09 - 02:44 pm Comment from: Bandit Bill

Absolutely ridiculous.

As an example...

I own an extremely good home alarm system. I was able to keep it after the contract from ADT expired. However, when I purchased a new house, it already came with an alarm system in place. I've been using this system for over 5 years now, because the company did not make me sign a contract.

Even if a product isn't as good, I'm more inclined to do business with a company that doesn't require a contract. Verizon is going in the opposite direction. Crappy products, crappy contracts.

I'm Canadian, so I'm interested to see what Telus has to offer in terms of contracts tomorrow (Nov. 05).

Nov 04, 09 - 02:45 pm Comment from: jjjj

strikeout. funny. Sums up Verizon and the Dodgers, perfectly.

Nov 04, 09 - 02:45 pm Comment from: Milney

Call me crazy, but in the UK the early termination fee is equal to the number of months remaining * your monthly fee. So like AL said, that must be a 36 month contract at $10 a month? Either that or those in America are getting screwed even further than they already are! Seriously if I lived in the States I'd use a cup and string wink

Nov 04, 09 - 02:51 pm Comment from: montex

On various message boards and blogs, like MDN, I see post after post of how great Verizon is and how they have the best coverage, blah blah blah. But now after a stunt like this, why would anyone want to pay money to a company with so little integrity and such obvious contempt for their customers? ATnT may not be perfect, and the iPhone may not be flawless, but they sure don't have to double their early termination fees in order to retain customers.

In other words, Verizon sucks.

Nov 04, 09 - 02:57 pm Comment from: MidWest Mac

There's another way to look at this: Maybe "early termination" also applies to when someone chooses to upgrade their phone to something different — such as going from a Blackberry to an iPhone before the Blackberry has been paid for.

If I'm Verizon, I implement the new charge a few months before I start selling iPhone so that I can extort my existing customers who want to stay on the Verizon network but wish to move to the iPhone from whatever crappy handset they're currently using.

Fingers crossed . . . . . .

Nov 04, 09 - 02:58 pm Comment from: Gregg Thurman

Stupid. Faced with a possible $200/$300 termination fee, many are going to forego Verizon's crap phones and limited function CDMA network for something else.

This is nothing more than a reaction to all those willing to pay the heretofore $150 termination fee, and switch to ATT in order to get the iPhone. Apple and ATT are winning this war.

Nov 04, 09 - 03:07 pm Comment from: Name

The price seems high, but the transparency is welcome. The customer now has a clear sense that the cost of the device is *subsidized* up front, effectively being paid off in installments. (In a way, it makes the Verizon data plans $10/month cheaper.)

Had AT&T;been this straightforward, there would have been much less confusion (and perhaps much less outrage) earlier this year with iPhone 3G users purchasing new iPhone 3G[S]s before their 3G subsidies had been paid off.


(Of course, you can still argue that the companies are charging way too much for plans and/or devices. I wouldn't disagree.)

Nov 04, 09 - 03:22 pm Comment from: the other steve jobs

iWill never forgive or use Verizon service after 10 years of them fscking around with their rate plans and i got jammed for $100 in phone calls because i was roaming on an analog tower that was NOT Verizons.

The rate plans were more complicated than the test to become a nuclear engineer for the Navy.

Nov 04, 09 - 03:24 pm Comment from: idiots abound

this has zero do to with iphone - it has to do with bogo offers where people sign up for 2 lines and get an extra device free, then cancel the extra line, sell the extra device on ebay and end up with a free device. they are trying to protect themselves from this type of scam. the world does not revolve around cupertino despite this blog's belief.

Nov 04, 09 - 03:33 pm Comment from: Jimithy

I suppose customers don't ALWAYS win when companies compete.

Nov 04, 09 - 03:33 pm Comment from: HughB

Kind of makes you wonder what AT & T are gonna charge once iPhone is available anywhere else. All these phone companies tend to have similar charges it seems.

Nov 04, 09 - 03:37 pm Comment from: DogGone

@ idiot

The verizon announcement does not limit the cancellation to only those who get 2 phones / lines. If they are trying to protect themselves from the bogo scam then they should restrict it to that.

Nov 04, 09 - 03:45 pm Comment from: breeze

@idiot:

this ain't no blog and the world actually does evolve around Cupertino when it comes to technology

Nov 04, 09 - 03:51 pm Comment from: Metryq

Sounds more like Verizon shot their customers in the foot.

Nov 04, 09 - 03:58 pm Comment from: bob lob law

of all the articles i have read on this issue, most attribute it to the BOGO deal where scammers pay the early termination fee and unload the free device. I find it rather fishy that Verizon isn't canceling the program that allows abuse or only increasing the ETF on BOGO Deals. Nope, they are shafting everyone who will be buying an iWannabe with verizon. This action is too broad to be attributed to clearing up a basic scam....

Nov 04, 09 - 03:59 pm Comment from: Spudly

Wow - Think twice before activating a new Verizon account!!

Nov 04, 09 - 04:02 pm Comment from: NCIceman

Wow, it's like none of these companies want my business....

As for subsidies, they should just state that separately, instead of hiding it in a contract termination fee.

Nov 04, 09 - 04:03 pm Comment from: smaugthewyrm

a quick google shows:
att early term fee $175

att iphone 3gs $199 + tx = $251.41

total with purchase then early term $199 + $175 = $426.41

purchase iphone with no contract:
iPhone 3GS 16GB White ($599): MB716LL/A + tx = $651.56

signup with att, then cancel saves you $225.15

LOLz.

Nov 04, 09 - 04:14 pm Comment from: SmartyGuy

I called to terminate my XM Radio yearly contract which was up for renewal in a few days. I just use it less and less and the value wasn't there. They offered me a 50% discount to stay. I took it.

XM isn't perfect either, but the carriers could learn something about how to keep customers. They all suck.

Nov 04, 09 - 04:31 pm Comment from: It's Obvious

idiots abound and R2 nailed it, despite the silly fanboy posting here.

Nov 04, 09 - 05:28 pm Comment from: truth

HA, I left verizon (and the POS Treo) for the first gen iPhone. I was past my contract date and they tried to hit me with a 275 ETF. I told em to get fsck'd and show me the contract, they then claimed I made a verbal commitment and was therefore under contract, I again told them to get fsck'd and sow me the signed contract. They kept sending bills, I kept filing them in the trash. They then turned me over to a collection agency who tried to offer me a "settlement" for $50. I told them NOPE NOT GONNA HAPPEN, sent them a letter disputing verizons claims and told them I was under no contract and that until someone produces a contract with my signature, there was no way I would pay them a dime. Haven't heard a word since.

Nov 04, 09 - 05:28 pm Comment from: doc

@ fatbas turd

... and to think someone tried, the other day, to tell me that Verizon and Apple are not competitors.

Nov 04, 09 - 05:32 pm Comment from: truth

Almost forgot, I canceled Verizon on iPhone launch day and when they asked why I was canceling I told them "Because I am getting an iPhone and am tired of your company nickle and diming me to death" The nice lady on the other end said: "I have been hearing that all day today"

They know they suck. I've been thrilled with AT&T;to be honest, easy to work with and I don't get a new charge every time I blink.

Nov 04, 09 - 06:13 pm Comment from: Chris

It seems like Verizon is scared of losing customers...Why would you raise the ETF? Switch to AT@T, and do it quick!

Nov 04, 09 - 06:22 pm Comment from: grognard

I would stay away from Verizion mostly because of the nickle and diming and CDMA quality. My brother has Verizon and it just doesn't seem so good. Besides GSM has 81% of the worlds phones are GSM as of 4 qtr 2008..(according to wireless intelligence).

I have had good luck with T-mobile- though decision time comes up in August as my two year contract expires. Good Customer service most of the time- only had to escalate a billing 'issue' to a supervisor once. Coverage is fine. (I'm on the west coast and a few times a year on the East Coast no coverage problems).

As T-Mobile is the only other carrier in the US that could technically offer the Iphone on their GSM network iphone is GSM only (T-moble already carries the Iphone in Germany) I would stay with T-mobile. Having said that, I really don't have any bad history with AT&T;so I would give them a chance if the costs for my family are close ($10-15 more no big deal).

I just have to decide if I even really need a smart phone given the monthly cost increase. My dumb one works pretty well- as a phone. Guess my needs are pretty utilitarian.

Nov 04, 09 - 07:39 pm Comment from: Verizon Customer

Just got a letter from Verizon saying my FIOS bill will soon go up by $10.00 per month. Might be a push to buy into one of their bundled services.

Dropping my Verizon land line, Verizon mobile, and switching to iPhone/ATT is looking like an attractive option at the moment.

Nov 04, 09 - 11:59 pm Comment from: DX

"A new connect has emerged with a few documents"... Am I the only one who balked at this tortured sentence? What the hell is this guy's definition of "connect"? Genius my ass.

Nov 05, 09 - 12:03 am Comment from: Fat Basterd

Some time back, the FCC was considering requiring wireless carriers to prorate the ETF based on how many months were used vs. remaining in the contract. I don't know if that has been passed yet, but it seems to me that Verizon decided on a method to technically adhere to that requirement and still make a killing off of the ETF.

Nov 05, 09 - 06:38 pm Comment from: LeeSweet

BTW, I believe the old VzW ETF was $175, dropped $10 a month (so that 'new' feature isn't) and bottomed out at $60. So, what's the minimum ETF now?

Nov 05, 09 - 10:20 pm Comment from: Hugh Jass

MacDailyNews Take: "Verizon's ......in order to dupe the ignorant.

Well how about AT&T;duping the ignorant with a non-existent 3G network? AT&T;is so incompetent they are whining about the sucessful VZW 3G ads comparing 3G coverage (btw, the VZW ads state that the AT&T;map came right off of AT&T;'s website!)...

AT&T;execs are such dufus's they are actually claiming that VZW should show their 2G coverage in addition to 3G which is based on the ancient, 30 year old GSM standard... (European technology - isn't that an oxymoron?)

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