Verizon Wireless has updated its terms of service, which could increase the amount you're paying in early termination fees, or ETF, depending on when you wish to defect and leave the carrier. According to the new terms, if you sign a new two-year contract with Verizon and decide to leave towards the beginning of the contract term, you'll be out more money as your early termination fees do not see any reductions until eight months into your contract.
Under the old contract agreement, your ETF charges of $350 would be reduced by $10 for each month you've fulfilled your obligation to Verizon. However, the change, effective for customers signing on or after November 14th, would hold the $350 fee without any reductions for seven months straight. Starting on the eighth month, Verizon would take $10 off your $350.
Here's how the new ETF breakdown works depending on when you decide to leave:
Months 8 through 18: $10 reduction for each month
Months 19 through 23: $20 reduction for each month
Final month: $60
Here's the language from Verizon:
If you cancel a line of Service, or if we cancel it for good cause, during its contract term, you'll have to pay an early termination fee. If your contract term results from your purchase of an advanced device on or after November 14, 2014, your early termination fee will be $350, which will decline by: $10 per month in months 8–18, $20 per month in months 19–23, and $60 in the final month of your contract term. For other contract terms entered into on or after November 14, 2014, your early termination fee will be $175, which will decline by: $5 per month in months 8–18, $10 per month in months 19–23, and $30 in the final month of your contract term. If your contract results from your purchase of an advanced device prior to November 14, 2014, your early termination fee will be $350 minus $10 for each full month of your contract term that you complete. For other contract terms entered into prior to November 14, 2014, your early termination fee will be $175 minus $5 for each full month of your contract term that you complete. Cancellations will become effective on the last day of that month's billing cycle, and you are responsible for all charges incurred until then. Also, if you bought your wireless device from an authorized agent or third–party vendor, you should check whether they charge a separate termination fee.
It looks like Verizon wants to hang on to those contracts, especially if they are subsidizing those smartphones for you.
Source: Verizon Wireless
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Reader comments
Verizon's new contract terms make it more expensive to defect early
We all know that nobody in their right mind would want to leave Verizon. This is just a way to help "shock" customers back to their senses. Since this company is just getting better by the day they need to up the shock value just so you won't make the dumbest mistake of your life by leaving the greatest cell phone provider in history. Thanks Verizon for slapping us across the face when we get hysterical.
How big and bad do these carriers have to get before the FCC does SOMETHING to protect consumers? for over 5 years I paid AT&T for my "family" of smart phones (4) about $300/month. They finally wise up and start changing to $160 a month, all along telling the FCC it is cheap...BS. America is folding to these corporations, and the FCC is really to blame. Put them in line and get the stupidity out of what truly is a public service. Parent used to scream murder if a phone bill was over $30. Times have changed, but the recent run down to almost half the previous price just shows how illegitimate the past cries from these monopolies really are.
So - GET on the stick FCC and protect America. Do your job and stop this stuff.
No thanks. VerHIzun kiss my
I'm just saying that though it may seem unnecessary to a lot of people you have to take into account what the company loses when it comes to contracts.....you're paying anywhere from 50-80% less than what the company pays for the phones themselves....it no more than fair that if I pay 299 plus tax on a device that is 700 they have taken a big hit.....if you don't want a contract just go with what your perspective company is offering....besides you have a 14 day policy for most companies that if you don't like the service you won't be penalized. Stop making issues out of things that are not really an issue.
Posted via the Android Central App
I have a family member who was with ATT for many years. They Switched to Verizon in January this year and is very happy.
I have 2 lines on Verizon (one switched July 2013, the other December 2011) both from Sprint.
I have 2 lines with Sprint. Both is up for upgrade. I have had zero issues with my service since switching from Sprint to VZW. I considered ATT and T Mobile, but the better coverage brought Looking at the usage on those lines, the changed data and my discounts, I can pay about the same with Verizon as I do with the current "sprint and Verizon".
Sure, I know many will tell me to go T Mobile, but I tried them before. No Thanks.
Is this something they legally can do without the FCC coming down on them? It doesn't seem right to me but I'm not a lawyer.
Putting the words "Verizon" and "more expensive" in the same sentence is redundant.
I am glad I got rid of Verizon. They had good coverage but it was shennanigins like this which made me leave them. Of course ATT isn't much better but they are a little bit better. I just use the Next program, only on the hook for 12 months then can trade in or keep paying for another 8. T-Mobile not great by me.
Posted via Android Central App
If it isn't broke, don't fix it. Verizon is not broke. Expensive, yes, but worth it.
Posted via the Android Central App
I'm paying less on Verizon than I would have on AT&T. Three devices/10 Gigs/2 Free Gigs/1 Device on Edge and I'm paying $167 total with taxes. I always take advantage of specials! (T-Mobile/Sprint is not worth comparing) Verizon is the only company that never hiccupped during the hurricanes here. It is also great for road trips, we had Netflix streaming in the car and across multiple states, my daughter was happy.. I would love to see someone try that on AT&T or T-Mobile lol.
Contracts don't bother me. been with Verizon 20 years
Fuck you, Big Red. No coverage is worth the shit you put up with.
Canada doesn't have ETFs anymore. We just have device balance.
Posted via Android Central App
Umm "Device Balance" is an ETF, just different "words"
From Telus: "The Device Balance is based on the discount you originally received for your device, and decreases every month over the length of your service term. At the end of your service term, the Device Balance is $0." AKA "ETF"
The problem is whiny Americans think they can sign a contract and get a $700 to $900 device for $200, then cancel after a few months and "get off scott free".. Don't want a contract, just buy a phone outright, don't finance or sign a contract and stop complaining, nothing is free. The truth is, that no matter the carrier or country, you are expected to pay off the device one way or the other ..Even with T-Mobile/AT&T financing it clearly states "If you cancel wireless service, remaining balance on phone becomes due."
Uhm. Fuck Verizon. Glad T-Mobile customer.
VERIZON? I left Verizon a year ago. Not planning to ever return. VERIZON? They make THEIR terms, I make MINE, and I LEAVE. I am plus happy too.
Never gets old seeing the out of touch hatred for Verizon on here. They are the biggest and keep growing, so they are doing something right. I think the disconnect for most of the AC community is that Verizon individual, non-corporate discount prices are very high. But their family plan prices for those with a discount are highly competitive. Verizon is cheaper for me than a similar plan from T-Mobile or any of the major carriers.
Posted via Android Central App
Just one more reason why I'll never switch back to Verizon.
Posted via the Android Central App
Hence why I'm month to month now.
Posted via Android Central App
My intake of this is Verizon is making a difficult contact to understand
Verizon went down all day Friday in Brunswick GA. Made local news headlines Saturday. Glad my family is with ATT.
Posted via the Android Central App
Dumped VZW 2 months ago for TMo, haven't really noticed any difference in service. What I have noticed is I'll save of $3,000 over next 2 years with my family plan. Changes recently at VZW shows that they are feeling the pressure from TMo :)
Don't have Verizon,but it's a smart move in their book. T-Mobile and Sprint are the only two carriers that currently buy out contracts. I think it makes it harder to do because they would be paying the full amount instead of a prorated amount.
Posted via the Android Central App
Are they doing this so if someone goes to T-Mobile it hurts T-Mobile more than It did before? It's a cut throat world makes sense.
Posted via the Android Central App
Hey I know how we can counteract all this T-Mobile marketing, let's double down on lock in. -hugely productive meetings at VZW recently.
Posted via the Android Central App
Yea they suck,
But unfortunately I'm an over the road truck driver, I used to have t mobile but the coverage sucks. Once they get their coverage better I'm going to tell Verizon to pound sand. Because with Verizon I can be in the middle of nowhere Wyoming and still get 4G and all bars. There is no way you can do that on t mobile
Posted via the Android Central App
I understand that situation, I tried out T-Mobile on my Nexus 7 using their promotional free 200mb/mo plan just to get an idea of the coverage I would get as I go about my service business around the state. The verdict is nope, I can't do T-Mobile yet. Till then I'm still using AT&T GoPhone in my phone. Far as I can tell AT&T has 90% of the coverage of verizon where I actually go.
T-Mobile still seems to be all about the cities around here, otherwise it's 2G EDGE.
I'm glad I defected when I did.
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This is Verizon's way of admitting that T-Mobile and other companies are hurting their sales. Oh well.
Posted via the Android Central App
Unfortunately, not enough.
Posted via the Android Central App
This is directed at T-Mobile for sure.
Posted via the Android Central App
What are some solid unlocked phones that you all use and on what networks? I'll be ready to leave Verizon next year and while I would love the latest and greatest , reality tells me that I won't be able to afford anything more than a midrange handset. No idea what I would enjoy. Currently have a Droid RAZR M.
Posted via the Android Central App
Great unlocked options would be OnePlus One, Nexus 5, Sony Xperia Z2 or price-dropped Z3 (later), Xiaomi Mi-3 or Mi-4 and the list goes on. There are plenty of options that provide high end-capabilities and quality to very affordable prices (almost budget pricing - like Mi-3s for $238 and so forth). Another option if you can handle the size is a Sony Xperia Z Ultra ($315-350 right now). There is also brands such as CoolPad with their F1.
I.e. there's no reason the worry about selection or lower the requirements to a "brand-name" device with outdated specs for the price either.
Fuck contracts and tiered data. Glad I left Verizon. Good coverage, but useless once ur over ur tiny limit.
Posted via Android Central App on The Nexus 5
More greed from the top 1%, only gets nastier, especially Verizon. I have a current contract with Verizon for 5 more months, but I would NEVER consider signing another with them....ever. I think this scheme will backfire on them. Thank you T-Mobile for being the provider which started the ball rolling for Verizon losing post-paid subs, and a reduction of the monthly bills for many people. The average hourly wages and salaries for Americans is going down, while the CEO's are getting more compensation consistently. People wake up! These blood suckers like Verizon must learn their lesson by the people speaking with their wallets.
Sprint has been doing this for dinner time now. No reduction for six months if I remember correctly. This the last five months is $100.
Posted via Android Central App
I have one answer. T-Mobile. I have 6 or 7 lines now (can't remember because gf keeps adding her family) that is at about 120 a month. That's unlimited calls and text and 2gb data LTE a month. And no overage fees for data. They just throttle. That's fine. This stunt Verizon is pulling sounds like a cry for help. You are worried so much about losing people that you jack their etf fees so high that people cannot get out. Jeez. I feel sorry for anyone using or planning to use Verizon. I used to be with ATT. God what an absolute waste of money. I paid 100.00 for one line. No more. FYI people if you want cheap service, buy a phone off contract and pick a provider (T-Mobile is the absolute cheapest) and bring your phone over. You can get great phones for much cheaper now it's just absurd if you pay to play with a contract. My .02¢
Posted via the Android Central App
My 2-year contract with Verizon ended in March 2014 but I am still paying $98 a month for 900 minutes talk, 1000 texts, 2gb of data +2gb promotional offer. Am I being ripped?
I am not planning to get into another contract. So, is there a way I can get a cheaper plan without a contract?
Posted via Android Central App
I would check out T-Mobile. That's what I'm doing within the next few days. AT&T is as expensive as Verizon.
Posted via the Android Central App
Thats the beauty of having a good friend in the AT&T corporate office. I pay less for my cell phone service for 2 lines that most people pay for 1 line on T-Mobile.
Posted Via AT&T Samsung Note 3
Are you being ripped? To me, yes. If your contract has been up since March, then that means you've been paying a subsidy for a new phone ever since March. Do you have a new phone or are you still using the same one that you had when you started that contract that expired in March?
I am using a Note 3 that I bought 2nd hand. My contract phone was a Rezound. I have to continue with verizon because it's the only viable service for me (no T-mobile), but no more contract.
Posted via Android Central App
Then if you aren't on a prepaid plan, then you're still paying a subsidy for a new phone without actually benefiting from having a new phone.
Quick comment/question:
1. In order to get the lower rate, a person needs to be on an EDGE plan correct.
2. The $14-25 a month discounts "ends" when the phone is paid off.
Thus, looking at the above statements, the only way to not continue to pay the "subsidy" as part of your monthly plan/service, is to continuously have a phone on Edge?
Is this correct?
With T-Mobile I'm paying $60/mo for unlimited talk, unlimited text (I'd blow through 1,000 texts in a week,) and 3.5gb of data. I'd say yes, you are getting ripped off. Unless that extra 500mb of data is worth ~$40 to you.
Posted via Android Central App
I pay $30 for 3 GB of data on T-Mobile. Great LTE coverage where I am as well (NYC). Unlimited talk and text via Google Hangouts and Hangouts Dialer (dumped regular calling/texting and have no plans on ever going back to them). The sound quality is better than classic calling too and WiFi calling works perfectly - Google Voice voice mail too and ¢1 to international landlines. Can't see a better deal.
Edit: No carrier branding for me, just unlocked phones as well and a requirement for LTE radios that are usable in both Europe and US, which my C6833 (Xperia Z Ultra) satisfies. I.e. high-speed data in many countries.
Just check to see if they'll give you a better plan. Most likely it's a share plan but just calculate how much data you use. My friend was given a 6gb data plan and then he gets his phones on swappa. No contract, less per month, it's a win except on months he goes over the 6gb but it's rare. They also have family plans that offer more data. Just call them up. The other option if you get good service where you live and don't travel for business is T-Mobile.
Posted via the Android Central App
If switching carriers like others have suggested isn't feasible, you can go pre-paid with Verizon if you own your phone outright. You'll get unlimited talk/text with half a gig of data for $45, and then you add more data as necessary. You could get unlimited talk/text and a little more data than you have now (4.5GB total) for $75/mo.
I think I read somewhere that the prepaid service of Verizon does not allow lte.
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Go pageplus. Same Verizon service with less price. You can buy or reuse 4G LTE phone phones as well.
Thats the thing wendemi, thats why contracts suck. You're paying for a plan that has a phone subsidy built in.
Posted via Android Central App
Try calling a customer service rep and tell them that you are going to switch to T-Mobile unless they lower your bill. I did that and now get UNL talk/txt and 2GB/mo data for $60 not including taxes, etc. I was paying higher. Tell them that you have a friend who has the "customer loyalty plan" and is paying $60. Previously I was paying much higher, maybe $100? Same thing for another friend. He was paying much higher, called, and got $30 off. Just call.
With Verizon, you are free to switch plans without being in a contract. I switched my data plan four times in a year, as I increase/decrease when needed and I was off contract this whole year till last month.
Yes you are being ripped. T-mobile here with 4 lines unlimited talk and text, 2GB of high speed data and a company discount(small discount but still every little bit counts) $124 a month. Plus international roaming is really nice in case we go to Mexico or other participating countries.
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You're kinda getting ripped off. You could be on the $75 unlimited talk and text with 2GB plan and also get the $15 month to month discount for being off contract. $60 for 2GB isn't that bad. Make the switch. No new contract needs to be signed.
If the could get you to sell your soul, they would do it.
Posted via Android Central App
Depends on the phone
Posted by my soon to be retired Note 3
I'm so glad I ditched contracts several years ago. I've been living contract free for at least 4 years and have been perfectly happy. They can take their contracts and early termination whatevers and shove them up their a**es!
I don't understand how more people haven't figured this out yet.
Definitely month to month for me from now on. Never wanted to pay full prices for phones but I want the freedom to cut and run if the carrier starts getting funky!
Posted via the Android Central App
the subsidy is $25/month and by your own math after the 4th month the subsidy covers the price of the phone plus what you already paid plus EFT. 200+ (4X25) + 350=$650
Because they charge you an extra $25 line access fee when on contract.
If everything else is constant and the only thing that changes is whether you're on contract or not then that extra fee is for the subsidy. Do you have that little common sense that you that you'd rather believe an article over common sense?
Let be break it down for you. I'll use 2 lines with 10GB of data for this example and 2 $600 phones.
$200 up front per phone. That's $400
$40/month line access fee that's $1920 over 2 years
$100/month for the data pool that's $2400 over 2 years
over 24 months that's $4720
Now the same plan but you pay in installment for the phones or buy them outright
600x2=1200
(15x2)x24=720
100x24=2400
total = $4320
So you save $400 over 2 years by not doing the contract
Further more if the price of service is $3120 then how come you're paying an extra $1600 by being on contract? That $1600 is the so called subsidy in my opinion and it's far greater than the the actual price of the phones.
Men lie
Women lie
Numbers don't
Posted via Android Central App
Well, here you are arguing about what is or is not part of the subsidy while other people that buy their phone outright know exactly what they're paying for. Would you prefer to buy a car at half price but be forced to buy gas from a single distributor at above the market rate? Would you realize at what point you're actually overpaying for your car+fuel?
This is illegal in Canada. Once you pay the phone back, you're free, no extra charge.
Posted via the Android Central App
Are you sure you understand what's being discussed here?
Posted via Android Central App
What difference is it paying off your phone or paying an ETF? Either way if you leave early, you have to pay a large amount of money.
Once my contract is up in May, I'm definitely staying month to month.
Posted via the Android Central App
Dont like it dont sign it. Simple.
Old dinosaur system for all you idiots who think you "have an upgrade" like its something to "use" or redeem. You people act like its a coupon that entitles you to some "deal" on a phone. The cost of the equipment is built into a plan over two years. Thats what a ETF is, its you paying for the rest of the phone that you would have in your plan for two years.
One born every minute man.
Posted via Android Central App
Verizon also does have the best service, so that needs to be considered when determining price, but yes, you are spot on with the contact and phone cost being built in
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That depends entirely on where you are. In my area, Verizon sucks. They're one step above a tin cans on a string.
This. Verizon has better coverage in places I'll never ever go. Whoopdie do!
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Whooptie do, nobody cares
Posted via the Android Central App
Agreed. There is a Verizon tower CLEARLY visible from my house, yet service is absolutely diabolical.
The wife is on AT&T and that tower is right across the road from the V tower yet she gets great service on her phone.
Posted via Android Central App
So what suddenly changed in Verizon's cost structure that justifies deferring the drawdown in the ETF? You pay a subsidy EVERY SINGLE MONTH yet they have just decided that if you pay six months of subsidy, then cancel your contact, they will keep 100% of those subsidy payments AND charge you the full $350 ETF, so they basically ate double-dipping and screwing you.
Posted via the Turbo
So if you can't make good on your end of the agreement past 6 months maybe don't sign it.
Posted via Android Central App
It's $25 not $20(compared to their own edge program) and they are charging you $600 o top of the $200 you already paid over the duration of the contract. L2math
Verizon just doubled my data allowance out of the blue for no reason. They're a-ok in my book right now.
Posted via the Android Central App
Doesn't the ugly Verizon tramp stamp on devices bother you?
Posted via the Android Central App
Really? If that's the biggest complaint you have, your life must be great and stress free.
I'm the kind of guy that stops a microwave at 1 second to feel like a bomb defuser.
Other companies do it as well....only device that doesn't allow them to do so is Apple
Posted via the Android Central App
I see no Verizon tramp stamp on my 64GB Droid Turbo.
Ah you fell for the Carrot and the stick approach, they show you a bigger stick while they shove the carrot up your A$$
You and I have very different understandings of the carrot and stick approach.
I think the more important change, that probably affects more people, comes in their edge contract. Cant get a new phone unless you pay off 75% of your current phone now.
Posted via the Android Central App
Can anyone tell me how much at&t charges for ETF?
Posted via the Android Central App
Depends on device and length of contract
Posted via Android Central App
For a smartphone it's $325 and reduces by $10 per full month you maintain service.
Posted via Android Central App
LOL @ contracts. Gave those up a long time ago! If people would give the middle finger to contracts, these companies would change their shit practices that are designed to screw the customer as badly as possible.
Posted via mostly ghost taps on OG N7, in the Android Central App, therefore posts may not be my own.
Too bad the cellphone companies have figured out that getting you to make payments on a phone is still a contact.
*contract*
Ssshhhh, Everyone thinks signing a two year cellphone financing contract is different than signing a two year cellphone contract...
The difference, of course, being that once said cellphone is paid off, your monthly bill drops by $X until you decide to upgrade. The alternative is a built-in subsidy price for service that you get to keep paying forever, even after the subsidy has recouped their costs for that "discount" they gave you upfront. Yes, a lot of people fail to grasp the concept of a contract, but the hardware installment plan is still the better option. You're certainly no worse off after 2 years. Someone mentioned the subsidy addition for Verizon was roughly $20/month (not sure if that's accurate, but for the sake of this example we'll assume it's close enough). That's $480 + the $199 you paid for that new [insert brand here] flagship you had to have. Assuming that sum was the retail price of the phone, and had you financed the same device with $0 down, you'd be paying about $8 more a month (just for device costs). I won't even go into the TVM principle here, but whether you were bound by device payments or a service contract, you paid the full retail price on that phone in your pocket at the end of the term, so why keep paying for something past 100%?
Maybe customers should be allowed to charge all of these corporations anytime they make money off of any of our personal information.
Posted via the Android Central App
You signed the T&C's. Get a tracfone.
Posted via Android Central App
Contracts are bad mkay
Unfortunately, America still isn't ready to move past contracts.
Posted via the Android Central App
Does any wise country move past contracts? Please inform
Posted via the Android Central App
I'm sorry.. Canada has no contracts.. You only pay the amount they reduced on the phone.
Posted via the Android Central App
LOL Umm "Device Balance" is an ETF, just different "words"
From Telus: "The Device Balance is based on the discount you originally received for your device, and decreases every month over the length of your service term. At the end of your service term, the Device Balance is $0." This is no different than an ETF at all!
America is probably the only major country on the earth that is so big on phone contract.
Posted via Android Central App
I cant wait until americans wake up and realize how bad they are getting ripped off with service contracts.
Posted via Android Central App
I can't wait till people stop feeling entitled, and instead go out and blaze their own path and stop complaining, but I hear ya bud!
Posted via the Android Central App
Lol because people wishing to save a little bit of money totally means they think that they're "entitled."
Posted via the Android Central App
I'm referring to the bigger problem, not cell phone contracts.
Posted via the Android Central App
Crimson, you dont really think you get a deal on a phone when you sign a contract do you? The cost of the phone gets built into your plan. It always has.
Posted via Android Central App
LOL , Unless you are plopping down $800 upfront to buy the device, YOU ARE IN A CONTRACT... A Financing contract to finance a phone IS A CONTRACT (and a great option!). I know people like to pretend it's not. All that VZW did in this case is make sure that people who think they can sign a contract and get a $700 to $900 device for $200, then cancel after a few months don't "get off scott free".. Don't want a contract, just buy a phone outright, don't finance or sign a contract, nothing is free, I used to do that before kids lol. The truth is, that no matter the carrier or country, you are expected to pay off the device one way or the other .. Even with T-Mobile/AT&T financing it clearly states "If you cancel wireless service, remaining balance on phone becomes due." just like an ETF..
Good for Verizon! If people are gonna be so flippant about breaking legally binding documents, then they should pay as much as possible.
Tdizzel
F Verizon
Posted via the Android Central App
Verizon couldn't care less how you feel. Pack up and kick rocks
Posted via the Android Central App
>>>tdizzel is a corporate mouthpiece!!!!!!
Posted via the Android Central App
Jay Holm is a complete and utter moron (my apologies to any morons who are offended by that statement)
Posted from my Droid Turbo, Kelly and Ozone
So very true.
I'm the kind of guy that stops a microwave at 1 second to feel like a bomb defuser.
I am with Verizon but I say F... them. I don't have a choice. T-Mobile is non-existent in my location and the other companies suck.
Posted via Android Central App
That comment makes no sense whatsoever. If people (or T-Mobile) pats the ETF, the contract isn't broken. It's ended.
Posted via the Android Central App
it makes plenty of sense since the ETF is a penalty you pay for breaking the contract early instead of the time it is supposed to end.
you see there is this contract, it has a term of two years..
you dont want to wait the agreed upon time so you would like to BREAK away from those terms.
they then fine you $350 (or less) and move on. simple.
http://en.wikipedia.org/wiki/Termination_fee
The etf is part of the contract. It's a term both parties agree to as a way for the customer to end the contract. When a consumer pays it, they are fulfilling their part of the contract and Verizon will fulfill their end by releasing the customer from the other obligations.
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Really? Good for you.
Posted via the Android Central App
Always one person like this in every comment thread.....can't keep a good internet troll down!
The ETF is a legally binding part of the Verizon contract. It allows the subscriber to legally break the contract should the subscriber decide he wants to close the contract. It's an escape clause. Carriers could easily have stipulated in the contract that the subscriber must pay the remainder of the owed contract should he leave early, much the way most apartment rental agreements stipulate. So subscribers who pay the ETF, per the legally binding agreement, are acting within the tenants of the contract. Pay the fee, you're free.
I agree
Posted via the Android Central App
Doesn't affect the existing 102 million customers so...wuts the big fuss.
Posted via the Android Central App
Exactly the implementation is only sinned at new customers, those customers that are switching probably have been with Verizon fir some months of not years. I don't see an instant impact just yet, maybe around the 2nd r 3rd quartet of next year.
~My $0.02~
I believe it effects each and every Verizon customer that decides to get a phone on contract. Whether brand new off the street, or a 10 year customer. The moment you get a new phone on contract you are in these new terms.
Posted via the Android Central App
But if you're switching to Verizon, why would that matter? Plus with all the changes they made to the plans with Edge , why the hell would you do a 2 year contract anyways?
Posted via the Android Central App
Sometimes a contract is cheaper or just about the same.
It's almost never cheaper
Posted via Android Central App
Haha T-Mobile must have you brainwashed. About 60% of the time it's cheaper to do a contact. I sold T-Mobile when they completely nixxed contracts and, let me tell you, 60% of customers if not more saw their bill go up when they got a new phone. It makes sense, but its not the god given best way like t Mobile is telling you it is.
Posted via the Android Central App
Look at it this way. If I wanted the latest and greatest Note 4 that retails at $750 and walked into Verizon as a new customer, on contract I woud pay $300 plus $35 activation fee. Add in the $350 for the early termination fee, I get the phone for $685.
Buying the phone on the Edge program, it's the 24 monthly instalments ($31.25) based off the full retail price. For being off contract I get either a $15 or $25 discount depending on my plan. We'll assume I'm a single line customer with the lowest plan possible. Over the span of 24 months I save $360 dollars. Leaving the total out of pocket expense of the phone at $390.
If you're on Edge, you have the option to upgrade at 75% of the device payments where by returning the phone you don't have to pay the rest of the leftover 25% or $187.50. $390-$187.50=$202.50
If you really wanna get crazy and save yourself some money you'd buy the phone on edge and trade it in at the 75% to pay only $202.50 out of pocket. All Verizon is doing with the Edge program is finding another way to lock you into a 24 month agreement with more of a guarantee that you will return to them as a customer when you decide to pick up a new phone. As long as the service works in your area and the price point for the plan looks good, why would you want to sign a 24 month contract and not take advantage of the discounts?
Your math is wrong. it's $300 plus $40/month for 24 months (25 more than edge)
So on contract it's 300 + (24X25)=$900
Edge is cost of phone divided by 24. so 750/24=$31.25 like you said.
So in your own scenario edge is actually $150 cheaper
All in all you're not not saving a ton of money either way.
The real way to save money on contracts is to get phones for "free" on cyber monday and black friday
I'm pretty sure my math is right. What $40 and $25 charge are you pulling out of your ass? The phone costs $300 on contract. What other charge is there to the cost of the phone monthly?
Dude no need to be a dick about it. why do we have to be A holes to one another just cuz this is the internet?
The monthly access fee for a phone on contract is $40.
The monthly access fee for a phone on edge/BYOP/pay full price upfront is $15.
By that logic the subsidy is $25/month. Where are you getting $20/month from?
Your logic is ignorant and skewed (is that polite enough for ya?)
Line access fee ≠ subsidy. The line access fee is a partial cost of the actual plan, not a cost of the phone. You pay the line access fee even on phones you didn't purchase through Verizon. You just get a discount for being off contract.
My logic makes perfect sense. You're just not seeing it.
If a charge is only there when on contract then that's the subsidy charge. plain and simple.
Damn! 102 million? Is Tmobile closing in?
Not even close. They are closing in on Sprint
Posted via the Android Central App
Maybe we'll hear from other carriers that they'll still pay for the whole ETF regardless of Verizon's changes.
Posted via the Android Central App
Still...Verizon loses a customer and
T-Mobile gains a customer. Plus this will have a negative effect on new customers looking for a good deal.
Posted via Android Central App
How many customers actually ask what the ETF is let alone read a contract?
Posted via the Android Central App
0
- works for one of the big four
Posted via Android Central App
For me its 3 out of every 10 people I'd say
Posted via the Android Central App
I sell phones for Verizon and for the last 5 months I have had 0 ask about etf
true but over the long haul, it forces legere to think long and hard about continuing to pay verizon to steal their customers if the cost of doing business continues to rise.
love them or hate them but this was a mart move by verizon.
But for how long will T-Mobile be gaining customers from Verizon? They may eventually stop paying ETFs in order to get people to switch as a result of moves like this.
T-Mobile won't be able to afford this much longer.
+1
Posted by my soon to be retired Note 3
Lol, this is aimed directly at T-Mobile.
Lol this won't stop anyone from switching to T-Mobile if they decide to do so.
Posted via the Android Central App
True, but I think it might be their way of making T-Mobile suffer since this will require more to be paid out from their ETF promotion. Not bad for potential customers, but bad for the company. Smooth move, Verizon.
I guess next Verizon will be asking for a $350 security deposit up front just to get a contract on their network. After that they'll require your First Born
Probably why Verizon is doing this. Make t-mobile pay more money towards Verizon.
Posted via Galaxy Tab 3 on Sprint
I'm so glad I didn't sign another contract with Verizon. My contract was up in July, but, after doing some research, I switched to T-Mobile last month and have been nothing but pleased. It's cheaper, faster, and the coverage is almost the same in my area.
Posted via the Android Central App
Yup, I feel the exact same. Everything Verizon does makes me glad I got rid of them
You're dumb. If you buy a $650 phone on installment, you're not down to $350 until your 10th month. This is just keeping things in line with installments.
How is what T-Mobile does in this case any better?
The whole etf schedule is outdated. Subsidies are now about $400 - $450. They should just raise the etf amount to match the subsidy.
Posted via the Android Central App
The new installment model is much better
Posted via Android Central App
What is BS is Verizon still charges you subsidy after your Contract Is Over.
I've been off contract for 5 months and my bill still has not changed or decreased. Thinking of contacting my State's AG about this hidden charge that doesn't appear on my bill but is covered up, also wasn't there when I got a subsidized phone but we all know it's there.
Tmobile allows you to pay any amount towards your installment therefor giving you the option to pay off at your pace. Verizon does not allow you to pay more off on your installment because they want to keep you trapped in those high monthly prices. Or pay the full amount left for the phone, it's a gimic that in the end I think will bite them in the but. They can do what they want I'm going to tmobile.
I switched to T mobile two months ago from Verizon, no regrets. Verizon does has the best coverage, but T mobile is enough for where I live. Higher speed and truly unlimited data plan, whole lot cheaper. If you don't drive around different states, no verizon needed.
Posted via Android Central App
Unless you live outside of a city. At least in NC, their coverage is for sh!t once you leave city limits.
No but it would impact the carriers that don't pay etf. For example, this would negatively affect those who are on a yearly cycle switching to a carrier that doesn't pay etf after 1 year with Verizon.
Posted via the Android Central App
I'm not going to T-Mobile because their service is terrible, I live in spring valley NY and for me to get one bar of service I have to walk 10 blocks away from my house, Verizon & att are the only 2 networks that works on my zone.
Posted via the Android Central App
Damn!!! That really sucks!
Posted via the Android Central App
It happens. But just know that T-Mobile is working extremely fast to get excellent coverage.
Neville is a network genius. John knows that the primary customer pain point is coverage.
It will be fixed and soon.
Posted via the Android Central App
They do that and keep their prices, then at that time -consider me in.
Posted via flowers, chocolates, and promises I don't intend to keep.
T-Mobile and coverage, lol.
Posted via the Android Central App
Gotta a link to that?
Posted by my soon to be retired Note 3
Sucks man but keep checking in finally have LTE in my town (suck it nonexus) tmobiles busting ass to update there network
Posted via the Android Central App
What did you do? Move?
Posted by my soon to be retired Note 3
Nope same town same place
Posted via the Android Central App
We'll I figured you had to have moved to get tmo service. I cannot remember the last time there was an article on here say that there were new lte areas for them
Posted by my soon to be retired Note 3
Don't worry, there isn't.
http://maps.google.com/?q=200+Tuttle+Rd%2C+Springfield%2C+OH+45505&ftid=...
Posted via the Android Central App
Walk? Not drive? Jk
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