FCC Investigates Verizon’s “Advanced Devices” ETF [Verizon’s New Early Termination Fees Raise Questions from the FCC]

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Verizon decided to change its Early Termination Fees last month. And by change I mean double them for certain “advanced devices.” You must surely remember the move as it followed the launch of hot devices like the Motorola Droid, the BlackBerry Strom2 and the HTC Droid Eris.

Although a little late if you ask me, the FCC has decided to investigate the whole matter. After all, not every other carrier out there decided to double those ETFs from $175 to $350. Sure I can understand why Verizon did it. With a phone like Motorola Droid I can imagine that some people would simply decide to ditch their new contract and pay the $175. But they wouldn’t walk that fast out of a 2-year deal if there’s a double ETF in place.

The FCC sent a letter to Verizon asking Big Red more details about the new ETF policy. The FCC wants to know what information is provided to customers about the new $350 early termination fee. The FCC is also interested in how Verizon selects those “advanced devices” and wants to know if there’s anything like a grace period in which customers can cancel the service without paying the full $350. The FCC asked about the prorating formula for the ETF and how customers are given such info. One important problem in the FCC’s eyes is the fact that customers that cancel a 2-year contract after 23 months will still have to pay a $120 ETF.

Furthermore the Commission wants more details about another Verizon policy according to which every customer that doesn’t have a data plan but does access Verizon Wireless’ Mobile Web has to pay $1.99 or more even if it was an accidental press of a button.

Verizon has to answer to the FCC’s questions by December 17 and hopefully that’s when Big Red’s customers will be able to get more details too about the new ETF policies and the one-press accidental activation of Verizon Wireless’ Mobile Web issue.