Verizon Wireless Facing The Heat After Doubling ETF
Federal regulators questioned Verizon Wireless to explain why it increased fee from $175 to $350 as the fee customers pay for terminating smart-phone contracts.
The FCC is asking Verizon to answer nine questions about this new ETF, including what information it provided to customers about the price hike, how customers can find out about ETF pro-rating, details about trial periods, and the rationale behind an increased ETF.The Verizon ETF decreases by $10 per month, which means a customer who cancels their two-year contract after 23 months would still owe a $120 ETF. “If the ETF is meant to recoup the wholesale cost of the phone over the life of the contract, why does a $120 ETF apply?” the FCC asked
The Commission points to a recent report in the New York Times that suggested the company is using shady tactics to profit from customers who accidentally push a dedicated Mobile Web button on Verizon phones. The NYT article cites a person who claims to work for Verizon admitting that the company purposefully places the button in a location where customers are likely to inadvertently activate it. Any data sent over the mobile web network results in a minimum charge of $1.99.
Verizon is facing much heat from Washington, and has led to hopes in heart of many that the fee hike will be rolled back.
Leave your response!