Verizon Wireless Answers to the FCC About New ETF

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A couple of weeks ago, the FCC decided to ask Verizon Wireless a few questions regarding those new Early Termination Fees that Big Red decided to invent. We covered that request and now we’re back with Verizon’s response.

The carrier has issued an impressive 77-page response in which it describes its ETF practices and provides proof for the FCC to analyze. Will the FCC be satisfied with the detailed responses that Verizon provided? That remains to be seen especially as Verizon isn’t saying that it would be willing to lower those special ETF.

Verizon explains in its letter to the FCC that it clearly informs customers about both the $350 and the $175 ETF and it also explains what constitutes an “Advanced Device”:

The “Advanced Device” category includes devices with a combination of advanced capabilities, which may include a premium HTML browser; high-resolution MP camera with optical zoom; dual processor chipsets; Wi-Fi; very high display resolution; and operating systems such as BlackBerry, Windows Mobile, Palm, or Android. These devices also include netbooks. (Service plans for USB modems and PC cards purchased at a discount are subject to a $175 ETF.) Advanced Devices generally have more complex chip sets, microprocessors and licensed software that perform more functions than regular phones.

Furthermore Verizon says that customers are also informed about the “Worry Free Guarantee” which lets customers cancel the service for any reason within 30 days of activation and they are also aware about the ETF proration schedule.

Verizon explains that it has to maintain those ETF levels in order to recoup the fees from customers that decided to break contracts. Verizon incurs additional costs as it needs to invest in its broadband network in order to keep it up to date with its customers’ needs.

Verizon also try to address one important FCC question regarding a weird scenario. If a customer decides to break the contract after 23 months, Verizon still charges a $120 ETF. That happens because Verizon Wireless would lose even more money should it try to prorate the ETF in a “manner that would reduce its amount to zero in the last month of the contract.” Verizon’s excuse is that customers usually cancel with more than 12 months left on their contracts.

So what do you say Verizon fans? Is this 77-page long response good for you or do you need more explanations? Let’s see what the FCC makes of it!