FCC unsatisfied and troubled by Verizon Wireless' response regarding its ETF and $1.99 phantom data fee

By on Dec 25, 2009 at 9:31 AM
News December 25, 2009

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In a scathing one page response, FCC Commissioner Mignon Clyburn cut Verizon Wireless to its knees by saying the answers the wireless carrier provided in response to the FCC’s investigation were “unsatisfying and, in some cases, troubling.” The commissioner chided Verizon for the fluctuating rationale behind its early termination fee, which has been expanded to include not only the cost of the device itself but operating and retail costs as well. She pointed out that high voice and data costs already subsidize these business costs and the fees levied, especially those at the end of a contract, are not in the public’s best interest. Clyburn further condemned Verizon by stating that she was “alarmed” by these $1.99 phantom data fees and that Verizon can not just bury its head in the sand and ignore this issue by saying it does not exist. The letter concludes with a stern reprimand reminding Verizon Wireless that they should be “focusing primarily on developing innovative products, maintaining affordable prices, and providing excellent customer service”. Hear that Big Red? Clyburn also promises to discuss this issue in greater depth with her colleagues next year. That water in which Verizon Wireless is standing just got a little bit hotter.

[Via DSL Reports]

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  • Freddie

    Why are people surprised about high early termination fees? If a phone cost $650 and the company sells if for $200 dollars to put customers on a $60-100 a month plan, that means the company is in the negative until the 4th or 5th month. At that point they’re barely breaking evening and making profit. If you hate high ETF blame fraud or get a cheap phone. The company has to protect its investments one way or another. Don’t blame the company because there low lifes who buy phones and resell on ebay. As for the $1.99 fees ????

    • justin

      If you think Verizon pays $650 for that phone your a fool.

  • biasedboygenius

    Freddie sounds like he works for BGR with all that Verizon love.

  • Wendy’s Spicy Chicken

    AT&T Rules!!!

  • bond

    Im with Freddie on this one guys network has a etf wtf are you serious Verizon has the best etf over every company that competes with them and yes Fred is right about the phones they do pay alot of money i dont know if its $600 but they pay alot more and the etf with Verizon is 175 big deal everything you sign a contract has a etf most of the time so grow up

  • tim

    Droid rocks iphone :( well its good for a phone lol no 3g

  • kv

    The etf on the droid is $350 not $175 and there is no way a person pays less than $90 a month for a plan with this phone. Verizon continues to jack up its costs and the amount of rebates with the phones. The best part is that some of the non smartphones have the same etf which makes no sense as i’s sure they dont cost as much as the Droid.

  • 24/7

    Ok what you guys have yet to mention is that one your wrong kv you dont have to have a 90 dollar plan for just the droid.. and second verizon decreases there early termination fees every month.. 5 dollars a month for the 175 dollar etf and 10 dollars a month for the 350.. what other cell phone company is going to lower your etf like that..

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