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Instead of wishing Verizon Wireless a happy holiday, FCC Commissioner Mignon Clyburn has sent a not-so-happy message to the wireless carrier. In an open letter, the newly appointed commissioner said Verizon has some explaining to do.<\/p>\n
\nClyburn wants Verizon to provide better justification after the company last week announced a higher early termination fee (ETF) for contracts associated with the purchase of smartphones, PDAs and netbooks offered at a reduced price.<\/p>\n
\nThe commissioner called Verizon’s reason for increasing the ETF from $175 to $350 “troubling” and “unsatisfying” and expressed hope the company will reconsider the fee hike that may affect tens of thousands of Verizon users. <\/p>\n
\nWhat also troubles Clyburn, her letter says, is the $1.99 fee that users without a data plan are being charged to go the mobile home page. <\/p>\n
\nBlack and White<\/p>\n
\nVerizon defended its changes and added clarification in a 77-page response to the Federal Communications Commission. The wireless carrier cited advertisements, contracts and other materials to show that consumers know about the ETFs before making a purchase.<\/p>\n
\n“Our ETF for all other devices remains at $175, which was set long before the advent of these expensive, sophisticated, mini-computers that also make calls and can be carried in pockets and purses,” said Thomas Pica, a Verizon spokesperson.<\/p>\n
\nVerizon argues that ETFs allow customers to have it either way. They can have no ETF on a month-to-month service and pay full retail for a mobile device, or they can get a discounted device with an ETF. <\/p>\n
\nAn example is a recent Verizon offer. Consumers pay $179 for a BlackBerry Storm 2 with a two-year contract. If the user breaks the contract very early and before the first $10 incremental decline, he or she will have paid $529, including the ETF. The full retail price of the phone is $539. <\/p>\n
\nVerizon said… <\/p>\n
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